India: What's in the post?
WHO IS THE biggest retailer in the country today? The quick answer
would be Shoppers’ Stop, FoodWorld or Subhiksha, the latter two
Chennai-headquartered retailers. But the answer to that seeming
sitter of a question would be the post-office. Before retail became
as fashionable as it is today, for years the Department of Posts has
been selling a variety of stationery and savings products through
its over 1.5 lakh post-offices. Only, it was not cloaked in the
right jargon.
However, in a spate of initiatives, the DoP is trying to goad the
slumbering organisation to leverage its vast network of people and
post-offices to emerge as a proactive, super-retailer peddling a
variety of services and products. It has evolved a brand, India
Post, offering an umbrella of value- added services, ranging from
e-mail kiosks to a tie-up with the IDBI to retail its products
through its vast network.
Its latest product lets corporates design their own stamps on
personalised envelopes.
The innovations may be tumbling out from post- office counters. But
it is imperative that at least some of them succeed in the
marketplace.
Post-offices worldwide are trying to generate alternative sources of
revenue in a bid to become profit-driven. While they do have huge
networks, the private sector is now increasingly impinging on their
sphere of services. The DoP would willy nilly have to put its best
foot forward or be marginalised, at least where its services in the
urban areas and to the corporate sector are concerned. Already, the
coming of the Internet generation has seen the virtual fall of mail
in the box.
Postal services in 2000-01 are projected to show a deficit of Rs
1,961 crore and the Plan support too for the DoP is dwindling.
Hence, the imperative to seek alternative sources of funds. However,
this fiscal its value-added services are expected to tot up only
around Rs 300 crore, pin money for the post- office. However, it has
made a beginning.
And the reality of the two Indias will ensure that the post-office
continues to be as relevant as it was all these years in the rural
and semi-urban areas. But it must begin to make money on its own.
And it has to act, post haste.
Copyright 2001 Kasturi & Sons Ltd (KSL).
Source: World Reporter (Trade Mark) – Asia Intelligence Wire.
BUSINESS LINE, 26th February 2001
