Ecom Express launches one of the largest outsourced grocery fulfilment centers in Karnataka

Mumbai : Ecom Express Limited, a new-age technology-driven end-to-end logistics solutions provider to the e-commerce industry, today announced the setup of its largest fulfilment center in Karnataka which is also one of the largest outsourced single-brand e-grocery fulfilment centers in India.

Situated in Hoskote, Bengaluru on an area of 2 lac square feet, the new fulfilment center is the second grocery facility set up by the Company in Karnataka. The new center will aid and support one of the leading e-grocery brands to deliver a wide selection of grocery products to consumers in and around Bengaluru city through its 100 hyper-local stores. With over 8 lac processing throughput per day, the newly built facility has the capacity of over 6 lac Cubic feet. It can store up to 10 million product units across categories, including daily household supplies, staples, tea, snacks and beverages, confectionery, personal care and more.

The Indian Online Grocery Market is expected to grow at a CAGR of around 33.00% to reach USD26.63 billion by FY2027. The fast changing consumer preferences, rising disposable income, new market entrants, and increased focus on expanding e-grocery business operations and adoption of attractive marketing strategies are the primary driving factors influencing the growth of the Indian online grocery market.1 Relatedly, the market expansion is fueling demand for new fulfilment/warehousing space.

The new center is a testament to the Company’s capabilities and solutions driven approach to support and stay relevant in the growing e-grocery market and bolsters its capacity to scale and invest in infrastructure equivalent to captive establishments.

K. Satyanarayana, Co-founder & Director, Ecom Express said, ‘’Today’s consumers are served with varied options thus placing heavy demand on e-grocery players to provide speedy fulfilment of their orders at value. This is a challenging proposition as it requires ability to manage complexities to match the demand at scale and size. The Company has built a network of fulfilment centers to cater to the growing and complex needs of customers and to be a solid partner in driving their fulfilment requirements in a much more efficient and flexible manner. We will continue to invest and expand our fulfilment centers in response to customer needs and are in the process of launching five more centers by the end of September 2022 to enable online grocery players to tap into this fast-growing market and benefit from the e-grocery boom.”

The new center in Hoskote will create close to 1000 direct and indirect jobs with roles ranging from data entry operators, associates for pick, pack and ship, inventory managers, loaders, unloaders, QC, security, housekeeping and management staff.

The facility operations are optimized by four state-of-the-art conveyors through a multi-level inventory structure and have various racking systems to accommodate fluctuations in demand. The center also has a vertical storage system for optimal space utilization.

1 https://www.globenewswire.com/en/news-release/2022/02/15/2385311/28124/en/Analysis-of-India-s-Online-Grocery-Market-2021-to-2027-Featuring-Flipkart-BigBasket-Grofers-and-Spencer-s-Among-Others.html#:~:text=The%20Indian%20Online%20Grocery%20Market,63%20billion%20by%20FY2027

The Company’s fulfilment network facilities are designed with efficient building systems that minimize energy usage. The new center integrates multiple dimensions of sustainability such as rainwater harvesting, sewage treatment plant, and safety measures, including fire detection, prevention, and supressing system, with employee evacuation plans.

Ecom Express’s Fulfilment Service vertical caters to B2B, B2C and e-grocery players to directly sell their products and be closer to buyers, without having to make large investments in infrastructure while providing end-to-end visibility of the operations. It caters to various sectors, including fashion, apparel, accessories, cosmetics, consumer electronics and more.

With 54 existing fulfilment centers spread across 38 cities and total operational area of 44 lacs square feet, Ecom Express already covers major markets with its presence. Most of the Company’s fulfilment centres are strategically located sites in proximity to urban centers and 20 per cent are in Tier III and Tier IV areas.