In
a world where private companies rule the roost, the business
of post is no exception. Since liberalization, private players
have penetrated almost any and every business. In the business
of postal services too, the government run India Post has
been facing severe competiton since the entry of private players.
The government seems to have realized the plight of the department
and is planning to amend in the Indian Post Office Law. If
the bill is approved, it will help the Department of Posts
(DoP) as it will give the department a monopoly over all letters
weighing up to 500 grams. The private players are up against
this amendment since 60% of their revenues come from couriers
which are less than 500 grams. Amidst this environment, DoP
is exploring new business lines and services, though there
are mixed reactions about this from different quarters of
society.
DoP
under the Ministry of Communications and Information Technology,
has already completed 150 years of service. The oldest organization
in the business of post is now venturing into new services.
DoP is increasingly becoming more businesslike in its approach
when compared to its former myopic way of working. It is exploring
new territories like logistics, advertising and promoting
products and services of various corporations, accepting payments
of utility bills and tie-ups with various companies to sell
their products. The reasons for this new approach are the
decreasing profits on account of better and faster private
player services as well as the increasing role of technology
(Internet and telecommunication).
DoP
is the largest postal network in the world with a record 1,55,669
number of post offices, followed by China and the US with
57,135 and 38,123 post offices respectively. At the time of
independence, India had 23,344 post offices, which were largely
confined to urban areas and select villages. During the last
50 years DoP has grown almost 7 times. On an average, a post
office serves an area of 21.17 sq km and a population of 6,614.
It has a significant presence in rural areas (1.45 lakh post
offices out of a total of 1.56 lakh). This network gives an
edge for DoP to bank upon. To its credit, DoP is the only
player to reach even the most interior part of any rural village.
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