Eyes of high revenue through tie-ups with logistics logistics firm
A senior official said that given the rising revenue from mail services, India Post is in advanced discussions with global logistics firm DHL.
Pradeep Kumar Bisoi, Secretary, Department of Posts said, “We want more speed posts and revenue increases.” “We’re tying up with DHL and in the final stages of discussions with them,” he said. Currently, India Post distributes speed posts to nearly 100 countries, and aims to deliver worldwide with tie-ups.
India Post’s total revenue from Speed Post decreased to December in the current financial year due to the impact of COVID-19. 1,002.75 crores remained. This amount was 64 1,764 crores in the comparative period of 2019-20, ₹ 1,922 crores in 2018-19, -19 1,829.80 in 2017-18 and 83 1,783 crores in 2016-17.
“This tie-up will also make tracking easier for consumers. Now we also provide tracking services for mail, but we depend on the country received, ”said Mr. Bisoi.
“DHL will be able to provide live tracking … We will be booking postage and handing it over to them,” he said.
The department, which currently derives the majority of its revenue from banking and related services, is also working to compete with private players for e-commerce delivery in large cities.
“In rural and remote areas, we still have an upper hand, but in big cities it is difficult for us to compete due to very low fees by private players. We are seeing ways to compete with them,” Mr. Bisoi. he said.
According to the annual report for 2020-21, India Post has targeted to achieve 10% revenue market share in the domestic courier, express and parcel sector by 2024, with the “growth of e-commerce creating huge opportunities for the department Huh.”
It also intends to increase parcel handling capacity to 24 crores per annum by December 31, 2020 against 9.68 crores per annum.
Additionally, the total revenue of the department, including remuneration from Savings Bank and Savings Certificate work, stood at Rs 39 8,539.43 crore for the period April-December 2020. Of this, ₹ 6,200 crore is remunerated by savings bank and savings certificate work, while the remaining ₹ 2,300 crore is from postal campaigns. In contrast, the department’s revenue expenditure during this period was ₹ 22,661.71 crore, resulting in a loss of ₹ 14,122.28 crore for the first three quarters of the year.
Mr Bisoi said positions were badly hit during the epidemic, a normal level of occupation they had been seeing since October. India Post also started its road transport network amidst suspension of rail and air services during COVID-19. “A dedicated nationwide road transport network for loading of essential commodities, especially ventilators, medicines, test kits etc., was operational using our existing fleet of vehicles,” he said.
About 3,700 tonnes of essential commodities in 7.5 lakh bags were transported through this network during the lockdown period (April 24, 2020 – May 31, 2020).
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