January 28, 2014 1:00 pm JST

Amazon expands in India with second warehouse

TAKAFUMI HOTTA, Nikkei staff writer

MUMBAI -- Online retailer Amazon.com plans to open next month a second distribution center in India as the country's e-commerce market takes off.

     The facility will be built on a 14,000 sq.-meter site near Bangalore and be ready for operations the same month. The U.S. online retailer already runs a warehouse of similar size in Mumbai. It expects the Bangalore center to strengthen its distribution capacities in the country's south. The size of investment remains unknown.

     Last June, Amazon opened its online shopping site dedicated to the Indian market. The site differs from Amazon's other sites because of India's prohibition against direct sales online by foreign-capital subsidiaries. Instead, the site acts as a sales agent for Indian retailers. Amazon handles shipments and storage at the Mumbai facility.

     India's online shopping market has been growing rapidly, despite the country's economic slowdown. Online transactions are forecast to grow 50-fold over the next 10 years from its current $1 billion.