Amazon India Will Save Close To ₹8 Crore In Rent After Moving Headquarters To New Location

The e-commerce and cloud computing giant Amazon India is relocating its corporate headquarters from its long-standing location in the northwest of Bengaluru to near the city's airport as part of a cost-cutting exercise to lower operational costs.

Amazon India's savings on rent

Currently, Amazon India occupies almost 5 lakh square feet of offices across 18 floors out of the 30-story building owned by Brigade Enterprises, which in turn raises the question of how a publicly traded real estate developer will find a new tenant to fill the office spaces that will be empty after Amazon India vacates the offices.

Amazon India's new corporate headquarters is located on the outskirts of Bengaluru, which is expected to cost Amazon India almost a third of the Rs 250 sq ft. rent that the company is currently paying, said two officials cited by Mint.

Brigade enterprises expects bigger rent loss

The relocation could start in upcoming April 2025 and be scheduled to end in April 2026. Many of the 5000 Amazon employees who work at its WTC (World Trade Centre) office chose to live close by because of these services. 25 per cent of the apartments in the complex are occupied by Amazon employees, the two officials said.

Amazon India financials

Logistics and payment

The logistics and payments divisions of Amazon India reported operating revenue growth of 7 per cent to 9 per cent and moderately reduced losses for the fiscal year that concluded in March 2024. Meanwhile, the company's wholesale division, which sells goods and services in bulk to distributors and sellers, saw a slight decline.

Amazon transportation services

Operating revenue for Amazon Transportation Services (ATS), the company's shipping division in India, increased by 7.6 per cent from Rs 4,543 crore in FY23 to Rs 4,889 crore in FY24. According to filings , its net loss decreased slightly by 6.9 per cent to Rs 80 crore from Rs 86 crore during that time frame.

Amazon Wholesale

Operating revenue for Amazon Wholesale as a stand-alone entity decreased from Rs 3,600 crore in FY23 to Rs 3,577 crore in FY24. The unit's net loss decreased by 44 per cent year over year to Rs 342 crore in FY24 after it had been reducing operations due to stricter foreign direct investment (FDI) regulations for e-commerce businesses owned by foreign firms.