Dear Comrades,
For an entity that is in the delivery business, speed in decision-making is not a strength of the department of post. From idea to implementation, the department has taken 16 years to computerise and connect all its 155,000 branches; it’s taken 10 years to enter the business of managing the movement of goods for companies.
Most recently, it’s taken four years just to commission a feasibility study for its biggest transformation yet, becoming a bank.
In the last 15 years, as electronic modes of communication have trampled on physical forms, the department has tried to change, only to give into its worst self, and continue down the road of irrelevance and mounting losses. In 2009-10, it lost Rs 6,641 crore, on revenues of Rs 6,266 crore. In other words, to earn one rupee in revenues, it spent Rs 2. In 1997-98, it gave itself a new, contemporary and meaningful identity: India Post.
Except it never carried through that exercise the way it could have and it sometimes even promised to. Several global logistics powerhouses have approached it for a partnership, but are left shrugging their shoulders. “We don’t know what India Post wants,” says a senior executive of a global logistics firm that is waiting on India Post for four business proposals made to it two years ago. “Dealing with them demands a great deal of patience due to the slow decision-making.”
The ultra-slow decision-making is compounded by ultra-fast personnel movement at the top. In the last 11 years, India Post has had six chiefs. “The department is a victim of its age,” says BN Som, who headed it between 1998 and 2000. “It has failed to maintain continuity of vision under successive leadership.” A proposal in one chief’s tenure tends to lose steam in another’s.
In a world that started and ended with it, this wouldn’t be catastrophe. But in a world where it is competing against private players, and is punching below its weight, time is running out for India Post. And it doesn’t have a big plan or an overriding sense of purpose to turn this red ship around.
Radhika Doraiswamy, the current captain of the ship, is looking to technology to cut costs and push new business initiatives. “Riding on technology, we hope to become a self-sustaining organisation by 2013-14,” says the current secretary-posts & director-general of the Postal Services Board. It’s a statement that clings to hope and numbers the department has never achieved before.
John Samuel, general manager–business development, shows a growth-projection sheet that calls the department to grow at a multiple of its historic rate. For example, in the business post segment, it projects 40% a year growth till 2013-14, against 15% and 20% in the last two years, respectively.
Even the government, which makes good the department’s deficit every year, doesn’t see a turnaround. Budget 2011 has put aside Rs 5,108 crore for India Post for 2011-12. And in 2010-11, it overshot what the government had budgeted for it by 2,300 crore.
Money Disorder
About 90% of its expenses go towards salaries of its 475,000 employees in 155,000 branches. It can’t, the department says, shut down commercially unviable branches because there is an India that uses these services and can’t afford to pay commercial rates.
7 Mar, 2011, 03.08AM IST, Bhanu Pande & Souvik Sanyal,ET Bureau
