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Amazon's (AMZN) India Footprints Expands With New Office

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In a bid to bolster its presence in India, Amazon (AMZN - Free Report) inaugurated its fourth office in the state of Tamil Nadu.

The new office is at the World Trade Center in the Perungudi area of Chennai. It spans 8.3 lakh square feet, occupying 18 floors of the building.

The office holds a capacity of supporting 6,000 employees. Amazon strives to reduce the carbon footprint of the building by curtailing its annual energy and drinking water consumption by 23% and 76%, respectively. This, in turn, will reduce the company’s costs at the underlined office.

The new establishment adheres to the government guidelines to provide a safe work environment. Thus, several health measures for employees have been implemented.

Amazon.com, Inc. Price and Consensus

 

Amazon.com, Inc. Price and Consensus

Amazon.com, Inc. price-consensus-chart | Amazon.com, Inc. Quote

Amazon’s Growing Footprint in Tamil Nadu

With the latest move, the e-commerce giant takes its total office area beyond 21 lakh square feet.

Its total employee strength is currently above 14,000 in the underlined state.

Apart from this, the company operates four fulfillment centers and three sort centers in the state. It operates a devices manufacturing unit in Chennai, which marks the first of its kind.

We believe that growing infrastructural investment in Tamil Nadu holds promise, as the state has a strong talent pool.

Amazon’s Expansion Spree

The latest launch is in sync with Amazon’s deepening focus on strengthening its infrastructure in India, which holds bright prospects for e-commerce and cloud businesses.

Apart from the latest establishment, the company continues to invest heavily in its fulfillment network. Amazon owns more than 60 fulfillment centers in the country at present. Its overall storage capacity spans more than 43 million cubic feet.

We note that Amazon remains well-poised to penetrate the booming India e-commerce market with its continued investment in fulfillment centers, which are giant warehouses that help online retailers store and ship products, and handle returns quickly.

The company’s rising number of Digital Kendras, the brick-and-mortar resource centers with the help of which it strives to encourage MSMEs to adopt advanced technologies to go online, remains noteworthy.

Zacks Rank & Stock to Consider

Currently, Amazon carries a Zacks Rank #3 (Hold)

Some better-ranked stocks in the retail-wholesale sector are The Kroger Co. (KR - Free Report) , Target (TGT - Free Report) and Costco Wholesale (COST - Free Report) . While Kroger and Target currently sport a Zacks Rank #1 (Strong Buy), Costco carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Kroger has gained 58.4% on a year-to-date basis. The long-term earnings growth rate for the KR stock is currently projected at 9.88%.

Target has gained 18.3% on a year-to-date basis. The long-term earnings growth rate for the TGT stock is currently projected at 16.52%.

Costco has gained 65.5% on a year-to-date basis. The long-term earnings growth rate for the COST stock is currently projected at 8.89%.

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