A Chapter on courier service in india

1. CHAPTER II
COURIER SERVICES IN INDIA

2. A
fter the Postal department, nowadays the
Couriers Service is playing a very important
and vital role in sending messages and
parcels in time to even far of destinations. Nearly twenty five
years back the business in courier service confined to only
developed Countries like America, Russia, Britain. But now it
is developed and spread its branches all over the world.
COURIER INDUSTRY IN INDIA
The shift in the Economic Policies of the Government of
India in recent years in favour of Privatisation, Liberalisation
and Globalisation has given a fillip to the Trade and Industry in
the country. Business has become more complex and
competition, more pronounced. Development of Infrastructure
is accorded top priority. ‘Speed’ is what is looked for in any

3. 9
scheme of activity today and hence the advent of Courier
Industry.
The development of Courier Industry in India is evident
from the growth rate it has been recording in the last few years
- a whopping 35 per cent per annum on an average. This has
resulted in many players entering the arena and the question is
one of ‘Survival of the Fittest!’ In the light of this scenario, it is
only the ‘Operational Efficiency’ that holds the key to success
in Courier Industry.
A study and clear understanding of the method and style
of operations of the Courier Industry is important as the
efficiency of every single Franchisee will have an impact on the
overall efficiency of the company and determine the success or
failure of the total activity.
Though, there are many courier companies operating in
India today, most of these are small timers engaged in intracity
or regional operations. There are only a few companies in the
organised sector with a national network having their own
offices and branches.

4. 10
A courier service company was introduced in our
countiy by D.H.L. Schainaka Organisation in the year of 1975.
At present about thousand courier companies have been
working and extending their services to all over the country.
With the introduction of these courier services, delivery of the
messages has become very rapid and speed to reach at the
doorsteps of receivers and lakhs of unemployed youth are
getting employment through this courier service sector. The
courier service agencies which are competing with the postal
department in mailing the message, parcels and goods utilising
the 90 per cent services of trains and planes, 10 per cent of
private vehicles, buses and through their own transport
machineiy. Courier companies established their main central
4
offices in all important cities like Delhi, Mumbai, Hyderabad,
Chennai, Calcutta etc., and the branches have spread in all
main cities in our country. Apart from this, in eveiy city and
town arranged collection points of letters, parcels and goods.
The purpose of this collection points is to do more effective
service at any time to consumer. Even the remote places are
well connected with these collection points.

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DRASTIC CHANGES IN MODUS OPERENDI COURIER
SERVICE
Courier service agencies are coming forward in utilising
the modern knowledge to discharge their services effectively.
The big courier companies are having relation with the
important airlines in the world to do effective and prompt
service across the countries. The computers are also taking a
great part in courier service. The information should be fed in
the computers regarding the document covers and parcels, in
particularly about the time of sending and the time of receiving
by the receivers. One more thing is that whether the document
covers and parcels reached the destination or not, one can this
courier companies are using the “E” - Main to send the
message to its branches from time to time. Apart from this, big
courier companies are developing the relation with its branch
offices through “V*- State-terminal. Some courier companies
are rendering very appreciable, wonderful and high value
service. Those who are unable to attend the marriage,
functions of their relatives, friends and nearer, are also
utilising this courier services effectively.

6. 12
The courier service is playing a very important role in
sending heartiest greetings and wishes with bouquets to the
farthest relatives and friends on behalf of consumers on festival
occasions. Even 35 Kg pack of parcel also can be sent by the
big courier companies in the name of mini flash box, flash box,
mega flash box to the various places of the world. Even though
it has more or less big and small companies, its main aim is
that it has to compete with the time in the way and with a
sense of sending the message and parcels speedily and safely
in time. The courier companies are searching the ways to
increase its branches equally with the postal department to
send the message quite nook and comer places.
PROBLEMS WITH EXCISE DUTY
At present slowly developing courier companies are
facing the problem of excise duty being collected by the Central
Government. The 5 per cent of service tax which is being
collected from courier companies by the Central Excise
Department has become a great burden to these companies.
The payment of salaries to the staff, tents to the shops and
telephone bills became veiy burdensome to the couriers
because they have to pay excise duty is not paid in time the

7. 13
Central Excise Department will charge, 100 (hundred) rupees
per a day. So, they are strongly opposing it. More or less big
and small courier company representatives are reporting that
all courier companies are suffering at the hands of Central
Excise Department. Another burden and problem is that
unofficially the Central Excise Department collecting five
thousand rupees per month from courier services companies.
The improper maintenance of records shown a cause or an
opportunity by the Central Excise Department to collect this
five thousand rupees from the courier companies. With all
expenses in their business, they may not get even 20 per cent
of profits and they have to pay all payments with in this 20 per
cent of profits. The government should take necessary steps to
ensure collect the reasonable charges from courier companies.
The big courier companies can only pay all these taxes but
small companies are not in a position to pay all taxes. So with
all the above cited reasons they are not in a position to
enhance the salaries of staff and are unable to expand their
business in time. Given necessary help by the Government to
these courier companies, they can provide employment to the
largely unemployed youth in our country.

8. 14
COURIER SERVICES - ITS MERITS
Courier services are three types - Corporate Couriers,
Angadia services and On Board Couriers. Corporate Couriers
are - such as DHL, Sky pack, Blue Dart, overnight flight,
Professional, DTDC etc., which are governed by Director,
Regional Managers and Area Managers. Angadia Services are
those which are depending on other courier services. On Board
couriers are those couriers who accept the loads of other
couriers and send their own persons in the flight for delivery of
parcels/letters.
In 1990 the Central Government had an idea to ban
courier services because of the fear that the postal department
would lose profits. But in 1996-97 Budget the Finance
Minister imposed 5 per cent service tax on the total business of
the courier agencies and made a few amendments, in the
customs and Central Excise Duties draw back Rules of 1995
and stated that these courier services agencies have to pay 5
per cent tax on their month wise business before 15th of the
preceding month.1
1 Centre Imposes Service Tax, Business Chronicle, November 2, 1996.

9. 15
MERITS
1. Courier Services are not only providing 10-15 per cent
discount but also credit facilities to the those consumers
who are their regular customer say medical representates
medical agencies, fertilizer and pesticide agencies, and other
agencies and their representatives.
2. Now-a-days many nationalised banks prefer to send their
documents and other statements through courier services
because of their ability to deliver quickly. Banks are
collecting security deposits from the courier companies for
safe delivery of their documents. By this banks are also to
some extent raising their deposits.
3. For speedy deliveiy courier services are maintaining regional
and district sub centres for exchanging the packets. For
this purpose, they are maintaining own flights, vans and
utilising the trains and buses. By this also the said
departments are getting good revenue.
4. To overcome competition from Courier Services, the Postal
Department has introduced “Speed Post* (Ems). But it has
failed, because consumer has to go to the post office for

10. 16
booking the documents and have to wait for a long time.
But in courier services booking and delivery is at the door
steps of the consumers.
5. Courier Services are providing employment to the educated
youth, thus solving to some extent unemployment problem.
6. For prompt delivery of documents the courier agencies are
selecting the local area itself.
BRIEF NOTE ABOUT SOME COURIER SERVICES
THE PROFESSIONAL COURIERS
The Professional Couriers’ an all India based courier
company with Head Office at Bombay and a wide network as
associated at all important domestic destinations. It was
incorporated in November, 1987 and the system is managed by
highly experienced professionals. In a short period it has
emerged as one of the leading courier companies in India with
10 Regional Offices, 500 associates and more than 6000
delivery points. 117 Destinations are covered in Andhra
Pradesh.

11. 17
At Kumool the first Courier service was launched by
professional Couriers started its business on 12 April, 1988
and later on its branches were opened all over the major towns
of the district with 5 collection points in the Kumool Town.
Thus a decade, of service has been completed by the
Professional Courier at Kumool. The directors of the
Professional Couriers are impressed with the services of
Kumool office and made the office as the area office for the
Rayalaseema region.
DESK TO DESK COURIER
Desk to Desk Courier and Cargo Ltd. Popularly known as
*DTDC’ came into being in the middle of 1990 as a Private
Limited Company and transformed into a Public Limited
Company in December 1994. The Company is nurtured by a
dedicated team of Directors, with Mr. Subhashish Chakraborty
as its Chairman and Managing Director and Mr. P,C. Naidu,
Wholetime Director.
DTDC is the top six Courier Companies in the country
and is poised to make further strides not only in the domestic
market but at the international level too. The company has
extensive network spread throughout the length and breadth

12. 18
of the countiy. The one single factor which distinguishes it
from other major players in the field is that it has set its sight
on smaller towns and taluq headquarters - the segment ignored
by the so called market leaders and pioneers in the courier
industry.
It has biggest network in the countiy extending into the
interiors. Starting with a modest network of 100 branches in
1990, the company now has more than thousand branches and
two dozen Hub offices, besides strategically located Regional
Offices at Bangalore, Chennai, Mumbai, Calcutta, Delhi and
Hyderabad. It has its Associates in Bangladesh, Nepal,
Singapore and Dubai and offices/tie-ups in cities like London,
Toronto, New York, Hongkong, Bangkok, Kualalumpur etc. A
little over 55,000-60,000 consignments are handled daily with
utmost speed and efficiency, irrespective of their size.
This company is in the process of installing a highly
sophisticated computerised shipment tracking and trading
system and with this, it should be in a position to keep close
tack of the movement of its shipments from any point to any
destination at any given time.

13. 19
PROBLEMS
Many Central and State Government undertakings are
not accepting the documents which are sent through courier
services.
Courier operations are depending on air, trains and
buses. For any delay caused by the above said ones, the
couriers services are facing cases before consumer forums for
delay of delivery.
COMPLAINTS PILED BEFORE DISTRICT CONSUMER
FORUM: KURNOOL AGAINST COURIER SERVICES
After enactment of the consumer Protection Act, 1986 in
India, the Kumool District Forum came into existence on
1.12.88 under the control of District Judge being its Honorary
President on part-time basis and first case was filed in the
District Forum on 3.12.1988. Since November, 1993 onwards
the Forum has been functioning on full time basis and a full
time president was appointed of the rank of District Judge
(Retired) along with two members. The liability of the courier
service agencies for any loss, delay misdelivery of the letters
entrusted to it by the sender for transmission to the addressee

14. 20
has been established by the Judgements of various consumer
forums.
After inception consumer Forum at Kumool, the
following number of case have been filed for redressal of
various problem.
Year No. of cases filed in the Forum
1988 5 Cases
1989 62 Cases
1990 344 Cases
1991 385 Cases
1992 409 Cases
1993 577 Cases
1994 458 Cases
1995 640 Cases
1996 325 Cases
1997 293 Cases
1998 Upto April 134 Cases
Source: Record books of District Consumer Forum, Kumool.

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Out of the above cases the consumers have filed
complaints against various courier agencies for deficiency in
service. The details are as follows:
S.No. C.D. No. Against name of the
courier and its place
1 C.D.No. 153/90 ANL KURNOOL
2 C.D.No. 98/91 ANL KURNOOL
3 C.D.No. 95/92 ANL KURNOOL
4 C.D.No. 14/93 BOMBAY ANDHRA COURIER KURNOOL
5 C.D.No. 115/93 DACCAN COURIER HYDERABAD
6 C.D.No. 148/93 ANL KURNOOL
7 C.D.No. 173/93 BOMBAY ANDHRA COURIER KURNOOL
8 C.D.No. 180/93 ANL KURNOOL
9 C.D.No. 354/93 PROFESSIONAL KURNOOL
10 C.D.No. 422/93 ANL KURNOOL
11 C.D.No. 433/93 ANL TIRUPATI
12 C.D.No. 456/93 DTDC KURNOOL
13 C.D.No. 496/93 BOMBAY ANDHRA COURIER KURNOOL
14 C.D.No. 204/94 FLIGHT DESPATCH KURNOOL
15 C.D.No. 276/94 BOMBAY ANDHRA COURIER KURNOOL
16 C.D.No. 43/95 AAKASH GANGA KURNOOL
17 C.D.No. 146/95 BOMBAY ANDHRA KURNOOL
18 C.D.No. 190/95 PROFESSIONAL COURIER ALLAGADDA

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19 C.D.No. 339/95 FLIGHT DESPATCH KURNOOL
20 C.D.No. 350/95 FRONTLINE COURIER PRODDATUR
21 C.D.No. 355/95 BOMBAY ANDHRA ATMAKUR
22 C.D.No. 374/95 ANL NANDYAL
23 C.D.No. 407/95 FLY HIGH COURIER SECUNDE­
RABAD
24 C.D.No. 405/95 DTDC KURNOOL
25 C.D.NO. 433/95 BOMBAY ANDHRA KURNOOL
26 C.D.No. 458/95 FLIGHT DESPATCH KURNOOL
27 C.D.No. 460/95 BOMBAY ANDHRA KURNOOL
28 C.D.No. 553/95 ANL BPL
29 C.D.No. 588/95 BOMBAY ANDHRA NANDYAL
30 C.D.No. 597/95 ANL KURNOOL
31 C.D.No. 601/95 BOMBAY ANDHRA KURNOOL
32 C.D.No. 617/95 PROFESSIONAL KURNOOL
33 C.D.No. 633/95 BOMBAY ANDHRA KURNOOL
34 C.D.No. 638/95 ANL BPL
35 C.D.No. 11/96 FLY PACK KURNOOL
36 C.D.No. 140/96 ANL ALD
37 C.D.No. 185/96 BOMBAY ANDHRA KURNOOL
38 C.D.No. 219/96 FLIGHT DESPATCH KURNOOL
39 C.D.No. 233/96 DTDC KURNOOL
40 C.D.No. 236/96 ANL NANDYAL

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41 C.D.No. 254/96 AKASH GANGA KURNOOL
42 C.D.No. 285/96 ANL NANDYAL
43 C.D.No. 292/96 AKASH GANGA KURNOOL
44 C.D.No. 305/96 ANL NANDYAL
45 C.D.No. 12/97 AKASH GANGA ADONI
46 C.D.No. 16/97 BOMBAY ANDHRA KURNOOL
47 C.D.No. 217/97 ANL KURNOOL
Source: Kumool District Forum Record Books from 1988 to
1998.
It can be observed from the above that large number of
complaints filed against Bombay Andhra, ANL courier service
agencies followed by others. Almost eveiy courier agency has
some or other dispute with the public pending before the
consumer forum at Kumool. In fact the number of complaints
before consumer forum, Kumool relating to courier services
would have been even higher, had there been much awareness
about the redressal mechanism of consumer forum.

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VARIOUS SUGGESTIONS GIVEN BY CONSUMERS FOR
IMPROVING COURIER SERVICES
1. Courier service branches should be opened in major
panchayats/or at main head quarters so as to services the
villages. Thus it will help for rural development at the same
time people of rural development at the same time people of
rural areas can also utilise quick services.
2. Now the insurance coverage under courier services is only
Rs. 100/- it must be extended upto 1000/-
3. The letters are not delivered within the promised time, in far
off places so measures should be taken to improve the
quality of service.
4. The courier agents should appoint educated/person at
booking place and for delivery of letters/parcel the persons
should be honest and he must be in position to know every
place in the town and addresses clearly. They must deliver
the courier to the business persons within banking hours.
5. Large network of courier branches all over India is
suggested.

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6. Being the courier service is a private agency people still lack
confidence upon their services, Therefore courier agents
should feel responsibility so as to get good faith among the
people.
7. It is suggested that courier services should also introduce
transmission of money like M.O. system in Postal
department.
8. Different courier agents are charging different rates for
booking of letters/ parcels. So it is suggested there should
be common procedure in all courier service centres and the
rates are some times higher than postal rates, so the rates
should be reduced in such a way so that an ordinary person
can also utilise it.
9. Some Govt, like organisations B.S.R.B. and N.D.A. inviting
applications for various recruitment are not accepting the
applications which are sent through courier service. So
measures should be taken in this aspect.
10. Courier agency should be given to educated persons.
Letters should be believed within the stipulated hours from
the time of booking. After delivery the acknowledgement

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slips should be delivered within two days and the agents
should be made responsible to maintain a record book for
future verification.
CONCLUSION
The foregone discussion makes it crystal about the
growing popularity of courier services and the increasing
acceptance of these services by the public and the corporate
sector in general. The potential of these courier service in the
generation of income and employment opportunities is very
much evident. As these courier services are still to go a long
way to reach the magnitudes of the business, it is necessary
that the Government should provide requisite help by not
framing such policies or measures which may prove
detrimental to the growth of these service in our Country.