Department of Posts
Business Development & Marketing Directorate
Dated 6th June 2005

PRESS NOTE

Direct Post

A new venture of India PostApproved by Minister of Communications & Information Technology

Shri Dayanidhi Maran, the Minister for Communication & Information Technology has approved the introduction of Direct Post for distribution of advertising material by the Post Offices. The Minister has been regularly reviewing the functioning of Department of Posts with a view to introduce products and services to increase the business volumes and revenue of the Department of Posts, and to come out with products that facilitate the growth of commerce in India. Direct Post is the most recent initiative of India Post, in this context.

Direct Mail, which is a means of distributing advertising materials directly to prospective customers, increases exponentially with economic growth. Therefore, Direct mail has shown a remarkable growth in the advanced countries. The Indian economy is poised to maintain GDP growth rate at over 6%, and of services sector at over 9%. This increased economic activity requires existence of a cost effective and efficient delivery mechanism for Direct Advertising.

To make use of this business opportunity for the benefit of Department of Posts, as also to make the extensive network of Post Offices available for the growing Direct Mail advertising industry of India, the Minister has now ordered introduction of Direct Post, with immediate effect. Necessary enabling orders and guidelines have, accordingly, been issued to Postal Circles on 2nd June 2006.

Direct Post would allow businesses to send their un-addressed mailers, pamphlets, brochures, and other advertising material like CDs/floppies, cassettes, samples etc. to prospective customers at very low rates of Rs. 1.50 for local articles, and Rs. 2 for anywhere in India. The senders would have to tender a minimum of 1000 articles and a 5% discount would be available for mailings of over 50,000 articles. The advertising agencies will also be entitled to a 5% commission on mailings of over 50,000 articles.

The introduction of Direct Post will not only help the businesses in accessing the prospective customers all over India in a cost effective manner, but would also help the Department of Posts increase its market share of the burgeoning business-to-business and business-to-customer segments of corporate communications sector.

Prospective users of Direct Post can contact Chief Postmaster Generals of their States for any inquiry in the matter. Alternatively, they can write in at business@indiapost.gov.in for any assistance that they may require.

An annexure containing possible questions on technical details of Direct Post, estimated market for Un-addressed Mail, and a list of likely users of Direct Post etc, is enclosed.

FAQs on Direct Post

What is Direct Post?

With the increasing commercial activity in India, the need for Direct Advertising of their products and services by the business organizations is growing. Direct Mail, which can be defined as ‘printed matter usually carrying a sales message or announcement designed to elicit a response from a carefully selected consumer or business market’  is the most potent medium for Direct Advertising. In the advanced countries, Direct Mail now constitutes a pre dominant portion of mail traffic handled by Postal administrations. Direct mail can be both addressed as well as un-addressed. Direct Post is the un-addressed component of Direct Mail, and would comprise of un-addressed postal articles like letters, cards, brochures, questionnaires, pamphlets, samples, promotional items like CDs/floppies and Cassettes etc., coupons, posters, mailers or any other form of printed communication that is not prohibited by the Indian Post Office Act 1898 or Indian Post Office Rules 1933

What is the price per article for direct Post?

The price for the Direct Post articles is as follows:

Where Direct Post articles are tendered in quantities of over 50,000, a discount to the sender, or commission to the concerned advertising agency, of 5% would be admissible

Are there any other conditions for availing Direct Post?

• Only un-addressed postal articles like letters, cards, brochures, questionnaires, pamphlets, samples, promotional items like CDs/floppies and Cassettes etc., coupons, posters, mailers or any other form of printed communication that is not prohibited by the Indian Post Office Act 1898 or Indian Post Office Rules 1933.
• A minimum quantity of 1000 pieces can be accepted under the ‘Direct Post’.
• Articles to be accepted have to be such that they do not exceed the length and width of an A3 size paper.
• Articles posted as ‘Direct Post’ will bear no address or name on the communication. These will be accepted in bulk in designated offices and will not be posted in a letter box.
• In case of articles meant for delivery in other towns, Direct Post articles would be accepted in PIN Code wise bundles.

Since when has Direct Post been introduced?

The Direct Post has been introduced by Department of Posts vide its OM no. 39-01/2001-BDD dated 2nd June 2005.

Can the Direct Post articles be sent out of India

No. The Direct post articles can be sent only within India

Whom to contact for availing of  Direct Post ?

Direct Post articles will be accepted in designated postal offices for acceptance of Direct Post. Postal Circles will identify these offices, and designate them as ‘Direct Post Centres’. These offices could be a Direct mail Centre, Mass mailing Centre, Business Post Centre, GPO/HPO, or any other suitable office. These offices may be designated ‘Direct Post Centres’ (DPCs) for the purpose of Direct Post. Usually, only one DPC would be identified in a city.

Prospective users of Direct Post can contact Chief Postmaster Generals of their States for any inquiry in the matter. Alternatively, they can write in at business@indiapost.gov.in for any assistance that they may require.

Who can avail of Direct Post ?

Any person or organisation can avail of Direct Post. However, some of the organizations and the beneficial uses of direct Post by them, have been tabulated below:

Likely Users of Direct Post

Any other relevant facts about Direct Post ?

• The senders of Direct Post can specify the numbers and areas, in which the sender wishes the Direct Post articles to be distributed. However, no commitment would be given for delivery of the article to any particular address or a person.
• The sender would be informed that the articles handed over by him had been delivered according to his instructions.
• In case the sender desires the articles to be printed, or requires any other pre-mailing activity, this could also be provided on payment under the business post, separately. Though these activities can be combined with Direct Post, they do not form part of the product ‘Direct Post’

Are any estimates of Direct Mail and un-addressed mail in India available.

India Post got an independent study done. Based on the study, the traffic projections are given below:

Traffic Projection for Direct Mail in India (crores of Pieces)