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Amazon to double down on groceries; foray deeper into fresh produce in India

  Amazon.com Inc expects groceries and household products to account for over half of its business in India in the next five years, as it moves to broaden offerings in the segment and foray into areas such as fresh produce.

Amit Agarwal, the India head of Amazon, said in an interview on Friday that groceries and goods such as creams, soaps and cleaning products, were already the largest product category on Amazon in terms of number of units sold in India.

"I would not speculate on when we would launch AmazonFresh but, absolutely, if you ask me the next five years of vision - from your avocados to your potatoes, and your meat to your ice cream - we'll deliver everything to you in two hours," he said.

AmazonFresh, which launched more than a decade ago in the U.S. market, is the company's flagship fresh grocery delivery service. In India, Amazon currently offers some groceries via a service named Pantry. It has also tied up with local vendors in four cities for Amazon Now, which promises two-hour deliveries.

"Probably in the next five years groceries and consumables would be more than half of our business," he told Reuters.

Agarwal said Amazon had already started experimenting with a few fresh groceries in India, already home to its largest active customer base outside of the United States.
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