The document discusses express mail services (EMS), which provide accelerated international and domestic mail delivery for a surcharge. EMS is governed by each country's postal administration and offered in over 190 countries. Key characteristics include acceptance at any post office, priority handling, tracking, signature on delivery, and delivery to the addressee. The fragmented EMS industry has over 2,500 players, with government postal departments and large organized players controlling most of the 72% market share. Major growth drivers include increasing logistics sector, e-commerce, consumer durables, and specialized services like temperature-controlled delivery. Issues facing the industry include proposed postal bill regulations, high operating costs, customs delays, and infrastructure problems. The industry is expected

1. PRSENTED BY:
ALIASGAR MANDSAURWALA
MMS OPERATIONS- 15

2. About
• Accelerated mail delivery service
• Customer pays a surcharge and
receives faster delivery
• A service for domestic and
international mail
• In most countries governed by a
country's own postal administration
• As of January 2015, EMS was offered
by more than 190 countries and
territories worldwide
• Asia Pacific region has 25% market
share in the express mail service
industry

3. Characteristics
• Acceptance at any Post Office or pick up from customer's premises
• Priority handling from acceptance to delivery in the destination
country or territory
• End-to-end tracking
• Signature on delivery
• Delivery of items at addressee's premises.

4. Structure of Industry
• Fragmented industry with large
number of players, estimated at
about 2500
• Large organized players,
including government postal
department- 72% share of the
industry revenue
• Semi-organized players- 15%
share
• Smaller players have the
residual market share

5. Growth drivers
• Share of logistics in GDP to
be 11%-13%.
• Organized retail, e-
commerce, consumer
durables, electronic
products, and healthcare will
be major demand drivers fro
express industry
• The business is presently
primarily generated from
metros and major cities
• Pharmaceuticals require
specialized services like
temperature-controlled logistics,
which are offered today by a
handful of players only
• As the express industry creates
products and solutions catering
to the specific needs of different
industry segments, the
penetration levels of the express
industry will increase leading to
growth for the industry

6. Major Issues
• Postal Bill
 Any reservation or pricing regulation
in letters is likely to lead to loss of
business for express industry
 Licensing requirement is likely to
result in an increase in administrative
costs for players
• High Operating costs
 The major items of operating costs
for the industry are shipment
handling charges and manpower
costs
 The combination of high level of
operating costs and limited pricing
powers lead to low profitability for
the industry overall
• Delays at customs clearances
 Some of the shipments additionally
require NOCs from the allied regulatory
authorities
 The clearance process at the Customs is
cumbersome requiring multiple papers,
declarations, etc., especially for non-
document shipments
 The cumbersome checking process and
manual verification of documents make
the process inefficient
• Infrastructure issues
• Other issues

7. Trends
• Employment
 Employee base, including direct and
indirect employees, of the express
industry is expected to grow to 17.2
lakhs by 2014-15 from the present
11.8 lakhs
• Investment
 The industry is likely to invest about
Rs 1200 crores over the next three
years
• The share of documents is expected to
decline due to increased use of emails,
e-filings, e-statements
• The share of non-documents is
expected to increases with spread of
business and manufacturing growth to
smaller cities and towns