India Post to invest Rs 322 cr to augment parcel capacity

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In a bid to strengthen its position in the e-commerce market, India Post has proposed to invest Rs 322 crore till 2019-20 to augment parcel handling capacity through which it projects to earn a revenue of Rs 1,608 crore.

An official in the Department of Post told PTI that with the current pace of growth in e-commerce segment, India Post would be handling 40 lakh parcels per month in the near future and the capacity needs to be augmented accordingly.

"The Department is proposing to invest Rs 322 crore in the period from 2015-2016 to 2019-20 to augment and develop parcel handling capacities," the official said.

He said India Post centres would be equipped with modern handling devices, conveyor belt and security systems to ensure faster and safe processing.

He added volumetric measurement system will also be introduced to ensure revenue based on volume of the consignment having lesser weight but occupying larger space in trans-shipment.

"With the proposed investments, the revenue projections from e-commerce in all segments is Rs 1,608 crore in five years," he said.

In order to cater to the parcel business, the department proposes to set up automated mail processing centres at Mumbai, Chennai, Bengaluru and Hyderabad with mixed mail sorter and parcel sorter at each location.

The official further said the department is implementing a global positioning system (GPS) in its departmental mail motor vehicles in all the major centres.

The IT modernisation project for India Post is under implementation which would result in electronically connected urban and rural network.

"It would allow increased consistency and reliability in mail, parcels and logistics delivery system in line with global standards," he said.

The department has also initiated a project for parcel network optimisation for developing a comprehensive business and marketing plan based on current trends in the e-commerce market.

In e-commerce space, India Post is serving more than 400 small- and medium-level customers spread all across the country including all major players like Amazon, Flipkart, Myntra, Snapdeal, Paytm, Shopclues, Yepme, Naaptol, Telebrands and Homeshop18, among others.