Amazon inks 20-year lease for 5.6 lakh sq ft warehousing space in West Bengal

In one of the largest warehousing transactions in eastern India, Amazon Seller Services has picked up over 559,000 sq ft of space at a fulfillment center in West Bengal's Hooghly through a long-term lease spanning over 20 years that will see the e-commerce major paying nearly Rs 430 crore in rentals.

The deal underscores Amazon’s continued focus on expanding its warehousing and logistics capacity in key consumption-led markets amid rising growth in e-commerce demand. The facility, being developed by Nahar Industrial Enterprises, will be handed over between January and June 2026. The lease will commence on June 1, 2026.

The lease has been signed at a monthly rental of Rs 1.26 crore with a tenure of 20 years, reflecting Amazon’s long-term commitment to the region. The contract also includes a 12% escalation after every three years and a security deposit of Rs 7.60 crore, showed the documents accessed through realty data analytics platform Propstack.

This transaction is structured as a pre-lease, a format often preferred by large e-commerce and logistics occupiers to ensure built-to-suit facilities meet operational specifications. Such deals also provide developers and landlords with visibility on rental cash flows even before project completion.

Amazon has been actively ramping up its warehousing network across India through a mix of large-format fulfilment centers, smaller last-mile hubs, and specialized facilities to handle categories such as groceries and large appliances.

The company has already established fulfilment centers in Kolkata and nearby locations to cater to the eastern region, and the Hooghly facility is expected to further strengthen its distribution capabilities across West Bengal, Bihar, Jharkhand, Odisha, and the Northeast.

“The Hooghly fulfilment center will play a critical role in servicing demand from Kolkata and other urban clusters across the region. The size of the facility indicates Amazon’s expectations of higher order volumes and its strategy to reduce delivery timelines by placing inventory closer to customers,” said one of the persons aware of the development.

ET's email query to Amazon India remained unanswered until the time of going to press.

Nationally, Amazon has emerged as one of the largest occupiers of Grade-A warehousing space. Over the past few years, it has leased millions of sq ft across states including Maharashtra, Karnataka, Haryana, Telangana, and Tamil Nadu.

The company continues to expand its fulfilment network as part of its long-term growth strategy in India, driven by rising penetration of online retail and increasing adoption of same-day and next-day deliveries.

Amazon Seller Services, the Indian marketplace unit of the US-headquartered online retailer, manages a wide network of fulfilment centers across the country. These centers form a key part of its supply chain operations, allowing sellers to store inventory while Amazon handles packaging, shipping, and customer service.