Home
Internet
Internet News
Amazon Reiterates Plans to 'Double Down' on India Operations

Amazon Reiterates Plans to 'Double Down' on India Operations

By Sriram Sharma | Updated: 24 July 2015 19:37 IST

Amazon became the highest valued e-commerce retailer according to market capitalisation, going past Wal-Mart and China's Alibaba on Friday, a day after the company's latest earnings call. Share prices of the e-commerce giant closed at $482.18, but rose 18 percent to a high of $571 during after-market hours, pushing Amazon's estimated market capitalisation to $265 billion (roughly Rs.16,95,395 crores).

The 20-year-old e-commerce retailer reported a 20 percent increase in net sales in the second quarter, and $464 (Rs. 2,974 crores) million in operating income. Jeff Bezos, founder and CEO of Amazon.com, mentioned that the company continued to double down on its India operations.

"We continue to see very strong usage of growth that's outpacing the revenue growth of 81 percent obviously." said Brian T. Olsavsky - Senior Vice President and Chief Financial Officer during the earnings call, detailing plans to launch its cloud service business Amazon Web Services (AWS) in India. Amazon CloudFront and Amazon Route 53 services are presently offered at AWS Edge Locations from Chennai and Mumbai in India.

Amazon lists over 25 million items, making it the largest online store in India, he added, while declining to get into specific investment levels. "India is a country that we're doubling down on based on the success we've seen there so far. And so very happy with the trajectory we're on there and excited to be investing and have the opportunities we do at that point." he said.

Amazon India opened fulfilment centres in Kothur, Telangana and Ludhiana, Punjab in June, and now operates 12 fulfilment centres spread across nine states.

Amazon is reportedly readying a $5 billion war chest (roughly Rs. 3,206 crores) to fuel its expansion plans in India, having previously committed to invest $2 billion in 2014.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.