The responsibility to enhance the access to basic postal facilities across the country has been given to India Post via the Universal Service Obligation. What this means is that India Post is responsible for catering to the ever-increasing demand of more post offices in both rural and urban areas of the country.
For someone looking to open a franchise, it is interesting to note that even though India has the largest postal network in the world and is home to 1.55 lakh post offices, the demand for these is only growing.
When it comes to franchising, franchises are responsible for implementing the counter services while the delivery and transmission still lie under the Department’s control.
For all the information related to India Post Franchise, read the below article completely.
The objective of the scheme
As discussed above, the major objective of the scheme is to increase the reach and connectivity of the postal service across the country.
In spite of being the leader in the postal network, India still needs expansion of this network in order to cater to the increasing demand.
A majority of the post offices in India are in the rural areas, around 89% of them. This leaves the urban areas deprived of many counter services that they can otherwise avail from the post offices.
The major aim of these franchises is to meet the growing demand by simply providing counter services in areas where post offices cannot be opened. Another objective is to facilitate and increase the sale of postal stamps and stationery through these franchises.
What can be said to be the overall objective of the scheme is to improve service quality and connectivity of the postal services in India, especially in the underserved areas.
Features of the Franchise Outlet Scheme
When it comes to franchising the postal services in India, there are a few things that need to be considered. These are:
- What can be franchised?
- It is important to note that only counter services can be franchised under the scheme. The actual transportation, transmission and delivery part of the services is retained by the department itself.
- Who arranges the linking of franchises?
- Although the transportation or delivery is not in the hands of the franchise, the linking of arrangements amongst different franchised outlets is done by the franchises themselves.
- What are the time constraints?
- The franchise owners do get the flexibility to work around the clock with India Post. Having said that, the franchise is required to render services across their counter/s for a minimum period defined by India Post.
The above are some of the most prominent features of the franchise scheme. If you are interested, you can always reach out to the department for the finer details.
Franchise selection criteria
Any individual, institution or organization in both rural and urban parts of the country is allowed to open a franchise.
The only exception to this rule is the family members of serving postal employees who want to open a franchise in the same division as their working relative.
In this case, a relative can be a spouse (not ex-spouse), children and stepchildren (not ex-stepchildren), wards, dependents, etc.
The applicant must be at least 18 years of age, however, there is no upper age limit.
The applicant must have cleared at least 8th standard from a recognized institute.
The applicants are required to submit an application form and fill out the MOA or Memorandum of Agreement.
Postal pensioners who can provide computer facilities are preferred.
The premises provided by the applicant must be appropriately located, accessible, well maintained and feature all related signage.
The required investment for conducting business, and operational details are expected from the applicant.
A valid business plan with the revenue model is ro be cleared with the Divisional Head.
The average investment is somewhere between Rs 1-1.5 Lakhs and the minimum revenue generation has to be Rs 50,000 per month.
The security deposit in the National Savings Certificate (NSC) is provided by the franchise; it is equivalent to the expected amount of daily transactions in a day.
The minimum security deposit is Rs. 5,000.
How to apply for India Post franchise
The first thing to do is to ensure that you are eligible for applying
A person is deemed eligible if they are 18 years of age or above, have cleared 8th standard and are not related to a post office employee in the same division
If you are eligible, then you can start the process by filling out the application form and signing the MOA or Memorandum of Agreement
The next step is to provide a business plan that includes a functional revenue model with at least Rs 50,000 per month of income
Once that is done, the next step is to procure premises with a promising location and good accessibility to ensure success
During the whole application process, it is important to be able to show enough funds to make the necessary investments as and when required
Once all the above are in order, the only thing left to do is fill out the application form and the MOA (Memorandum of Agreement)
Products and Services
Selling of stationery and stamps which include the sale of revenue stamps, CRF or Central Recruitment Fee stamps, tagline collection, billing and payment services
Booking of money orders, speed post, registered articles, etc.
Bulk booking of registered and speed post articles, as long as they abide by the restrictions that are imposed by the department
Money orders of value of Rs.100 or less cannot be booked by franchise outlets
Act as an agent for Postal Life Insurance (PLI), provide after sales services and collect premium
Provide future services brought in by the department that might involve third parties or other organizations
Be able to offer flexibility as per the range of services provided as per the unique demands of the outlet
Training
Proper training is provided to the members of every franchise before and also during the running of the business. It includes but is not limited to the following training measures:
Offering introductory training about the objectives of India Post
Providing detailed information about the different services and products offered by India Post
Acquainting the employees and the franchisee owner about the basic procedures of the outlet
Providing information with respect to the upkeep of the premises and what is expected from the management and staff
Giving detailed information about customer care and how to deal with customers in the best possible way
Guided sessions conducted by the sub-divisional inspector about the running of the outlet
Making the outlet adept to function on computers and carry out entire transactions on the machines
Training is provided to the employees to be able to offer and adapt to flexible services and solutions that might not be offered in the neighbouring outlets
Application procedure for scheme
You can apply by following the below-mentioned steps:
- Submit the India Post franchise form
- Visit the office and fill out the scheme form, giving detailed proposal information mentioning operations
- Alternatively, you can also download the scheme form from the Department of Posts, Government of India website
- Sign the MOA or Memorandum of Agreement with the department
- Provide detailed information about the activities and progress of the outlet, in the form of records, progress reports, etc.
- Once the application is made, the selection process takes upto 14 days
- The decision is made by the Divisional Head as per the reports or statements provided
- The decision whether to open the franchise or not is made
Remuneration
The department offers both fixed and flexible remuneration to the franchise owners. The major income sources for such entrepreneurs are as follows:
Every time a customer books a post or speed post, they receive Rs. 2 per order
Every time a money order is booked, a cut of Rs. 3.5 goes to the franchise
When postal stamps and money order forms are sold, 5% of the commission goes to the franchise outlet
An extra 20% commission is offered on the booking of 1,000 or more speed posts
For more in-depth information, you can always visit the department and learn about more schemes.
Conclusion
If you are someone who is thinking of opening a franchise in India, then you can definitely open an India Post franchise. It requires minimal investment and you get full support from the national department when it comes to training and running of the franchise.
Since the postal services are closely involved with the training, premises finalising and other aspects of the outlet, you get an experienced partner to run your decisions through.
Since you do not have to worry about transportation or transmission, it becomes a much easier undertaking. Unlike other major franchises, you are not expected to invest large sums of money and almost anyone is eligible to get a franchise in their name.
There is no other rival when it comes to flexibility and transparency in running a franchise business other than India Post.
Frequently Asked Questions
Q1. Is the Indian post office franchise profitable?
Yes, the Indian post office franchise is profitable. The postal network in India is the largest in the world and yet there is a huge demand for offices and branches.
This is met through the India Post scheme. With minimal initial investment of around Rs. 1 Lakh, you can be earning at least Rs 50,000 per month.
2. What is the income of the post office franchise?
The income of the post office franchise comes through the sale of stamps and other stationery. The booking of speed post, post and money orders also brings in a lot of money to an India Post outlet.
You can earn anything from Rs. 50,000 or over a month by opening up a franchise.
3. How does a post office franchise work?
A post office franchise works by offering counter services of a post office to the customers. The customers get to buy insurance, stationery and stamps from the outlet.
Additionally, they can also send speed post, post and money orders.
4. Which is the most profitable franchise in India?
The most profitable type of franchises in India are that of courier and delivery with InXpress leading the way.