Calcutta: Flipkart, the home-grown e-commerce major, plans to set up its own integrated logistics hub in Bengal to facilitate faster delivery to buyers in the eastern and northeastern parts of the country.

The Bangalore-based firm intends to acquire 80 acres of land, either privately owned or from the government and is scouting for locations connected by road to the national highways in the state.

Flipkart plans to develop 40 lakh square feet in phases and the investment is expected to be upwards of Rs 650 crore. The company anticipates a direct job creation potential for 5,000 people.

"The idea is to move closer to the demand centres and for that we are creating the requisite infrastructure. The logistics hub will serve Flipkart customers in all the states of eastern and north eastern India," said Amitesh Jha, vice-president at Flipkart.

The logistics hub will house several Flipkart fulfilment centres and sorting centres and will act as the node of the company's east India operations.

Jha said the logistics hub would improve supply-chain efficiency and reduce costs by deploying mechanised warehousing and will leverage technology for intelligent transport systems.

"Our business is growing at a rapid pace in the region and we are at a stage where we are investing and taking a long-term approach," he said.

The decision by the e-commerce firm to set up its own hub marks a shift from the usual industry practice of renting warehouses in major markets and refraining from making direct investment.

The company plans to develop a similar logistics hub in the south India.

With the goods and services tax doing away with multiple state level taxes, e-commerce firms are increasingly exploring ways to manage the supply chain with fewer but larger warehouses.

The Bengal government has identified the potential of the sector and has prepared a policy to support the sector, announced in the state's business summit in January.