Amazon India inks two long-term agreements with Future Retail, FCL

The development comes after Amazon had agreed to buy 49% stake in Future Coupons Ltd.

Company News : Amazon India on Monday said it has entered into long-term business agreements with Future Group for expanding the reach of the latter's retail stores and consumer brands through its online marketplace. The development comes after Amazon had agreed to buy 49 per cent stake in Future Coupons Ltd that in turn holds stake in Future Retail Ltd (FRL) last year.

"FRL and Amazon India signed two agreements focusing on key categories - grocery and general merchandise, and fashion and footwear," according to a statement released Monday.

Amazon India will also become the authorised online sales channel for FRL stores, and FRL will ensure participation of its relevant stores and programmes on the Amazon India marketplace, it added.

Besides, Future Consumer Ltd (FCL) has also inked a long-term agreement with Amazon Retail India Pvt Ltd (ARIPL) for distribution of Future Consumer's portfolio of brands online. Some of FCL brands include Tasty Treat, Voom, Dreamery, Karmiq, Mother Earth, Kara, CleanMate and others.

As part of the partnership, FRL will augment existing store-infrastructure at its retail outlets for facilitating seamless packaging and pickup of products ordered online. FRL and Amazon India have already launched this service across 22 stores. Both companies plan on rolling this out across the entire FRL store chain based on agreed timelines.

"FRL will leverage its existing infrastructure, strong product knowledge and extensive brand portfolio resulting in higher store productivity and improved margins," as per the statement.

Currently, FRL attracts over 350 million footfalls across its retail network, and Amazon India's marketplace will enable FRL to reach a wider customer base.

Also, FRL will list on the Amazon Prime Now programme, allowing customers to get food, grocery and general merchandise delivery within two hours in Delhi, Mumbai, Bengaluru, and Hyderabad.

FRL plans to soon list stores like Big Bazaar, and Foodhall in more cites on the Amazon India marketplace.