Are you looking for a government franchise business with safe, less investment high profit? Then the India post office franchise is the right fit for you! This business opportunity will grow you. In this blog we are going to explore Why invest in an India post franchise, Franchise brand details, about India post office, Investment things, requirements things, Revenue model, Agreement and Compliance, training & support of India post office franchise.
Let’s break it down together!
Why Invest in an India Post Franchise?
India boasts the largest postal network globally, with over 1.55 lakh post offices, of which 89% are in rural areas. Despite this extensive network, there is a continuous demand for more post offices, especially in newly developing urban areas.
Franchise Brand Details
Name: India Post office
Founded year: October 1 1854, 169 years ago
Founder by: Warren Hastings, East India Company
Owned by: Government of India
Total employee: 403,678 Employees (Mar, 2022)
Headquarters: Dak Bhawan, Sansad Marg, New Delhi
About the Brand
Warren Hastings had taken initiative under East India Company to start the Postal Service in the country in 1766. It was initially established under the name “Company Mail”. It was later modified into a service under the Crown in 1854 by Lord Dalhousie.
The history of the India postal service is a great journey that dates back centuries, with roots tracing back to ancient times when messengers conveyed messages across regions during the Mauryan Empire.
However,
The formalization of postal services began during the British colonial period. In 1727, the East India Company established the first post office in Calcutta (now Kolkata), which laid the groundwork for a comprehensive postal network. By 1854, the India Post Office Act was introduced, creating a structured network of post offices, regulating postal rates, and ensuring the confidentiality of communications.
This pivotal act established the role of the Director General of Posts for India, a position that continues to oversee the postal system today.
After India gained independence in 1947, the postal service underwent significant expansion and modernization. The number of post offices grew from 23,344 in 1947 to over 1.5 lakh by 2016, with a remarkable 90% located in rural areas.
The Indian post office Department of Posts comes under the Ministry of Communications with 100% equity owned by the Government of India.
Today, India Post stands as the largest postal network in the world, boasting over 1.55 lakh post offices. In 2024, the Department of Posts launched the India Post Franchise Scheme to enhance postal services across urban and rural regions.
India Post office franchise Investment Things
Security Deposit: Rs. 5,000
Operational Costs: These may include rent, utilities, and staff salaries, which can vary based on location.
Total investment: 2,50,000 Lakhs
Now let’s talk about the revenue model
Revenue by commission from India post office Franchise Scheme
Commission Structure
Franchisees earn commissions based on the services provided, which include:
| Services | Commission per Transaction |
| Booking of Registered Articles | ₹ 3.00 |
| Booking of Speed Post Articles | ₹ 5.00 |
| Booking of Money Orders: (i) with a value of ₹ 100 to ₹ 200 (ii) with a value above ₹ 200 | ₹ 3.50 ₹ 5.00 |
| Booking of Registered Post Articles and Speed Post Articles beyond 1000 articles | 20% additional commission for respective articles. |
| Sale of Postage stamps and stationery (including philatelic items) | 5% of the sale amount |
| Retail services including the sale of revenue stamps, central recruitment fee stamps | 40% of the commission earned by DoP |
| Monthly Business (from Registered Parcel and Speed Post Parcel, separately) | Commission on monthly business |
| Speed Post Parcel | Registered Parcel | |
| Up to ₹ 5,00,000 | 10% | 7% |
| ₹ 5,00,001 to ₹ 100,00,000 | 20% | 13% |
| ₹ 100, 00,001 to ₹ 500,00,000 | 25% | 16% |
| Above ₹ 500,00,000 | 30% | 20% |
Rs. 3.00 for each registered letter.
Rs. 5.00 for money orders exceeding Rs. 200.
5% on the sale of postage stamps and stationery.
7% to 25% commission on the monthly business generated from speed post articles.
Franchisees can earn commissions on various services offered through the India Post franchise. For instance, they earn Rs. 3.00 for each registered letter and Rs. 5.00 for money orders exceeding Rs. 200. Additionally, franchisees receive 5% commission on the sale of postage stamps and stationery. The commission for speed post services is particularly lucrative, ranging from 7% to 25% of the monthly business generated. This structure enables franchisees to achieve significant earnings on India post office franchise, especially in high-traffic areas where demand for postal services is strong.
Requirements of India Post office franchise
Eligibility Criteria
Age: Applicants must be at least 18 years old.
Education: A minimum educational qualification of 10th grade (Class X) is required.
Computer Skills: Basic computer skills are necessary, as franchisees will need to operate digital systems for transactions and record-keeping.
Language Proficiency: Familiarity with local languages and English is important for effective communication with customers.
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Agreement and Compliance of India Post office franchise
Memorandum of Agreement: Upon selection, franchisees will sign a Memorandum of Agreement with India Post, outlining the terms and conditions of the franchise.
Adherence to Guidelines: Franchisees must comply with the operational guidelines and standards set by India Post to maintain service quality and brand integrity.
Training & Support
Training Program: India Post provides comprehensive training for franchisees to familiarize them with the services, systems, and operational procedures.
Ongoing Support: Franchisees can expect ongoing support from India Post, including updates on new services, marketing assistance, and operational guidance.
For more details:
Download PDF: Click here
Conclusion
If you’re looking for a safe, low-investment business with high profit potential, the India Post Office franchise is a great choice. With a modest investment, you can tap into the trusted and extensive network of India Post, providing essential services to your community. The franchise offers a steady income through commissions and comes with full training and support from India Post, making it an excellent opportunity to start your own business with minimal risk. Whether you’re in an urban or rural area, this franchise can help you grow while contributing to the development of postal services in your region.
If you have any questions or need more information, feel free to ask.
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FAQ
The India post office Department of Posts comes under the Ministry of Communications with 100% equity owned by the Government of India.
Franchisees earn commissions based on the services provided, which include:
Rs. 3.00 for each registered letter
Rs. 5.00 for money orders exceeding Rs. 200
5% on the sale of postage stamps and stationery
7% to 25% commission on the monthly business generated from speed post articles
The profitability of an India Post franchise depends on factors such as location, services offered, performance efficiency, operating costs, and the commission structure. Initial monthly earnings can range from Rs. 20,000 to Rs. 50,000, with successful franchises potentially earning more.
To become a franchisee, applicants must:
Be at least 18 years old
Have a minimum educational qualification of 10th grade (Class X)
Possess basic computer skills
Be proficient in local languages and English
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