Skip to main content

Amazon (AMZN) is opening up its biggest office yet, in the southern Indian city of Hyderabad.

The new India outpost can hold 15,000 employees across 9.5 acres, Reuters reported, and serves as another sign that the ecommerce giant has no plans to retreat from the growing market. Amazon shares closed 1.23% higher on Wednesday to $1,823.54. 

Despite a burgeoning ecommerce market and rapidly expanding economy, India has proven a difficult-to-crack market for Amazon thus far.  

As recently as this month, Amazon was in talks to buy stakes in two of India's largest retail conglomerates, Reliance Retail and Future Retail Ltd. It's also reportedly interested in acquiring Uber Eats India. 

The fastest-growing large economy in the world, India was once regarded as the keystone of Amazon's international growth plan. However, government restrictions on foreign-owned ecommerce firms enacted earlier this year, which affected both Amazon and rival Walmart (WMT) , have hampered Amazon's ability to establish a dominant position thus far. 

Amazon's international growth has been lackluster compared to its other business lines. For the second quarter, it reported $14.9 billion in international sales, representing year-over-year growth of 12%, while North American sales grew 20% to $38.7 billion.

However, Amazon's CFO Brian Olavsky expressed some optimism on a recent earnings call that conditions in the market will improve. 

"Our engagement with the Indian government makes us optimistic about partnering and collaborating to seek a stable, predictable policy that allow[s] us to continue investing in our technology and infrastructure, and it also helps us to create jobs and scale local businesses," Olsavsky told investors in July. 

Amazon is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AMZN? Save 57% With Our Labor Day Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor! Click here to sign up!