Interim Project Report

INDIA POST
1. Introduction
India Post is one of the most extensive Postal services catering to the Indian public since
1727, with currently touching through a network of more than 1.55 Lakh + Post Offices
across India. With their Last Mile Reach, almost 90% of the Post Office are catering to
Rural Population and the rest 10% to Urban. As per Business Today article dated April
22, 2019, it was reported as one of the most considerable Loss Making PSU followed by
BSNL and Air India. With the increase of eCommerce & International Courier players
India Post seems to have been miscued majorly because of High-Pay and allowance
costs, Mismatch between product-service and price and price charged, Mismanagement
of human resources and Lack of diversification of business. Hence, there is still a massive
opportunity for India Post which can be captured through B2B model in order to survive
and subsidise cost for the needy.

2. Background Information
About the Organization (Business model and Product and services offerings)
With the Vision and Mission of being the Customer’s First Choice through touching the
lives of every citizen in the country in the mode of various value for money services viz
ranging from mail, parcel, money transfer, banking insurance and retail services.
India Post function area can broadly divided into
● Postal & Mail Operations
● Financial Services
● India Post Payment Bank
● Philately
● Postal & Mail Operations
Almost 30% of the revenue for India Post Comes from its Postal Services which equals to
almost Rs.5,000 Cr in cash. On an average, a Post Office serves an area of 21.14 Sq. Km.
and a population of 8770 people. Post Offices are usually opened on the basis of distance,
population, and income norms. These services can further be classified into Premium
Services which include Speed Post, Business Post, and other modern ancillary services
like eCommerce Portal, e-Post, e-Payment etc.
 Financial Services
Nonetheless financial services contribute to more than 60% of the total revenue. During
the Budget Speech of 2015-16 a major initiative was taken up by the government in order
to promote financial and increase access of the people to the formal financial system
Offerings: -

3. Market Overview
The logistics industry is considered a crucial sector to boost international trade as a
consequence of digitalization and globalization. The logistics and freight industry are
evolving rapidly and regarded as the backbone of the economy in India as it ensures
quick, efficient and economical transport of goods across India and many commercial
sectors rely on it. The innovative and advanced technologies have provided increased
efficiency and extra combined operating models in the logistics industry in India.
On one side, with the implementation of advanced technology and refined processes, the
planning, implementation, and control of the goods movement have become faster and
efficient. On the other hand, inadequate logistics infrastructure and traditional practices
 created bottlenecks in the growth of the Indian economy. But the latest logistics
management procedure has the ability to overcome the difficulties at the same time
offering cutting-edge competitiveness in the long run.

4. E-commerce Retail in India

The online retail market in India has grown by leaps and bounds from its nascent state in
the mid-2000s to its current market of USD19.5 billion worth of transactions at a gross
level before returns and rejections. Strong government initiatives coupled with reducing
prices of smartphones and data plans by telecom service providers have led to an increase
in adoption of the internet amongst new users. Consumer behaviour has also evolved
wherein e-commerce initially was more of a heavily discounted market place, to today -
where many users are seeking convenience of ordering products from the comfort of their
homes, rather than visit physical stores.

5. E-COMMERCE Logistics in India

The Indian e-commerce retail industry has been on an upward growth trajectory with a lot
of growth potential and logistics seen as a key enabler in its growth. The e-commerce
retail logistics market is valued at USD1.35 billion in 2018, and is projected to witness a
growth of ~36 per cent in the coming five years.
The e-commerce retail logistics sector is serviced by traditional logistics service providers
(LSPs), e-commerce retail focused logistics service providers and captive logistics arms. It
is largely a captive market (49 per cent share), however, a sizable share is still dominated
by new age players catering especially to e-commerce retail.

6. Major E-commerce logistic companies in India

● Delhivery.
● Gati.
● Ecom Express.
● FedEx.
● Blue Dart.
● Final Thoughts.
7. India Post in E-commerce logistics
With 1.5 lakh post offices in India and 5 lakh hired postmen across India, India post aims to
become a key e-commerce logistic player in India. It would like to take advantage of its
reach even in the remotest villages of India and become the top player in the logistic
market by collaborating with top e-commerce players like Amazon, Myntra, Flipkart etc.