Times Of India reports that Amazon will be entering Indian markets in the first quarter of next year, which confirms our earlier report that Amazon will be opening an Indian office in 6 months.

According to the report, Amazon is currently in discussion with various homegrown e-commerce players like Flipkart.com, LetsBuy.com and Exclusively.in, although it plans to set up its own operations in India. This follows failed acquisition talks with several e-commerce firms in India, unlike eBay which entered the Indian market in 2004 by acquiring Baazee.com.

With the online retail industry pegged to reach $1.5 billion mark by 2015, sources suggest that Indian companies are currently seeing huge potential in the e-commerce segment and thereby resisting any acquisition offers they receive.

The report further suggests that Amazon is currently working on building a team of 200+ people across tech and non-tech divisions, which will be headed by Madhu M, a former Landmark Retail executive and the current SVM at Amazon.com.

Amazon will also be establishing a warehouse in India’s financial capital, Mumbai with offices spread across Hyderabad, Bangalore and Chennai, where Amazon has reportedly bought an 80,000 sq ft plot.