Flipkart is apparently looking to create its own office complex near its headquarters in Bengaluru. The news has emerged from real estate agencies who have been mandated to scout for properties. The company is looking to buy a piece of land and construct the building. The sources indicate the e-commerce giant owned by Walmart has a budget of ₹1,500 crore of which the land alone would be around ₹400-₹450 crore, looking at the real estate prices in the city. The requirement is reportedly 150 acres of land and Flipkart would not be averse to locating the complex around 50-60kms from Bengaluru. A four-year timeframe has been set for the project.
The report also indicates that a couple of properties recommended to the company have been rejected by them.
The company wants to create similar complexes in Chennai and Hyderabad too besides Bengaluru. The idea would be to consolidate the company’s operations in one place. As organisations grow, they take office space on rent and many times at different locations. Once the business reaches a reasonable level, the organisation would want to bring everyone together for smoother operations and it will save the company enormous fixed costs on the rentals.
In an operation like Flipkart’s, it could include its main warehouse is also within this complex, again, allowing better control over its functioning and saving on costs. In the proposed Bengaluru complex, the warehouse portion could take up the better part of 25 acres.
There is the aspect of land ownership too, as Walmart cannot directly own the land as a foreign entity. More details may emerge over the next few months.