Be a franchise of India Post and earn handsome monthly income.
With rising inflation, prices of all household items and to meet other sudden expenses, it has become very tough for all income groups, especially the middle income group to meet these expenses. From day to day grocery to utility bill, from paying bank installments to pay children’s education expenses, individual with limited income face shortage of funds at many occasions. So, what to do to generate more income; start a business? It requires huge capitals and infrastructure to start a business and success is not guaranteed. But there are various options which can add some income and you can meet various expenses and save money for future needs.
Postal Department of India has introduced a franchise services which can be an additional source of income. India Post, one of the biggest public sector enterprise having access in all cities, towns and villages in India, is now come up with a proposal to further expand its access to more people. India post offers franchise to individuals and enterprises to perform some operations of postal department at any location in the country. The objective of this proposal is to maximize the access of postal department products and services in areas where people face problems in availing these facilities.
Franchise partner will provide counter services to the customers whereas distribution and other services will be done by department. Unlike the post office which has scheduled opening, closing and working hours, the franchise partner will have flexibility to work round the clock. The franchise partner will be authorized to offer following services at the franchise outlet –
- Sale of stamps and stationery.
- Booking registered articles, speed post articles, money orders.
- Functioning as an agent for Postal Life Insurance (PLI) and provide related after sales service, including collection of premium.
- Retail services like bill/tax/fine collection/payment services of the Department.
- Facilitating the provision of e-governance and citizen centric services.
- Any other service introduced by the Department in future through its outlets.
How to be a franchise –
The applicant will have to submit an application in the prescribed format and selected applicant would require to sign a Memorandum of Understanding (MOU) with the postal department. Criteria for selection has been fixed considering the need to select persons with the capacity to manage and market a range of products, along with a sense of the community needs and public aspects of the job, and willingness to accept technological options.
Eligibility criteria to apply for the franchise –
- An individual, institution/establishment or other entitles such as upcoming township, business park, special economy zones, industrial zones or highway project can apply for the franchise.
- The members and dependants of the postal department employee cannot apply for the franchise ship however judicially separated spouse and children can apply for the franchise.
- Minimum age 18 years at the time of application and no upper age limit.
- Education – Minimum 10th from a recognized board of education or institution.
- Premises – Proper appropriately located and accessible premises, properly maintained with suitable display of approved signage.
- Investment – An average investment in establishing infrastructure and other facilities at the premises will be 1 – 1.5 lac. Applicant will have to mention the minimum business generation feasibility in the location where franchise is proposed to open. Minimum revenue generation must be Rs. 50000 per month which will be reviewed by the department every biannually basis. A minimum security paid to the department will be Rs. 5000 in form of NSC (National Savings Certificates).
The selected applicant will undergo training from the department which will be given by sub divisional inspector of the department. One who opts for POS (Point of Sale) machine at the franchise outlet will get the POS machine and barcode stickers else applicants can choose the manual receipts. Franchise partners will also get the standard signage boards for the branding.
On becoming franchise partner of the postal department applicant will start getting commission from the department on sale of services and products sold at the outlet. Commission offered by the department will be –
- Rs 2 per registered post article booked.
- Rs 2 per speed post article booked.
- Rs. 3.5 per money order booked.
- 20% extra commission on booking 1000 or more speed post, registered post or both articles booked.
- 5% commission on sale of postal stamps, money order forms and other stationary.
This is how a post office franchise can generate extra income sources for an individual or an enterprise. Franchise can become a source of income as per caliber and efforts of the franchise owner and his capacity to market and promote postal department’s products and services. One who wishes to apply for the post office franchise can contact at the nearest post office for more details. To download the applicant format and MoU, click on the following link.