BlueDart, DHL increase prices, TCI pricing constant, India Post charges lowest

Mamuni Das Updated - August 11, 2011 at 09:03 PM.

Women are getting busy in picking the best rakhis for their siblings

In the run-up to festival of Rakhi, logistics companies with express services such as TNT, DHL, Transport Corporation of India (TCI) have started offering Rakhi delivery options.

The companies, who offer to deliver boxes with Rakhis inside, claim they do not register profits from these services; and that this is a way to connect with people.

Global companies - such as the Dutch firm TNT and German firm DHL - use such a service as an opportunity to connect with local markets.

PRICING

In terms of services, most of the companies offer to deliver rakhis in specially designed boxes. Some also offer deliveries in designer envelopes – which are priced lower.

These express companies have two broad service segments – domestic and international. The pricing for the domestic rakhi delivery could range from Rs 101 (TCI) to Rs 299 (DHL, TNT).

The prices for international deliveries are usually in the range of Rs 1,000-1,199.

India Post's Speed Post service, which is the premium express delivery service, has multiple pricing variants for delivering rakhis through mass mail.

India Post offers Speed Post delivery ‘flat rate' boxes – with price ranging Rs 125 onwards depending on the weight; also offers speed post deliveries for Rs 25.

NOT FOR PROFIT

TCI says it has not revised the pricing for this service since last six-seven years.

But, BlueDart-DHL Express (DHL has 81 per cent stake in Blue Dart now) has increased its pricing for the domestic rakhi delivery service consistently in the last few years - to Rs 299 this year from Rs 249 in 2010, Rs 200 in 2009.

CONNECTING WITH PEOPLE

Logistics firms, who generally rue that they are an invisible industry, say that they offer this service to connect with people.

“We provide this service more as a way to build links with people,” Mr P.C. Sharma, President, TCI Express, said.

“There are an incredibly large number of Indians working and residing abroad. Such services enable them to be in touch with their roots…,” said Mr Chandrashekhar Pitre, Senior Director Marketing, South Asia DHL Express, India.

TNT, which has been running this service for last six years, has sourced Rakhi gift boxes from the Spastics Society of Karnataka this year.

DEMAND PATTERNS

Mr Sanjiv Kathuria, Director-Sales and Marketing, TNT, said, “The trends have been varying over the years…both internationally and domestically, the percentage of delivery has been 50:50.”

TCI said that from its total bookings, about 15-20 per cent are from international customers.

“We have seen a 10-15 per cent growth in bookings every year in the last eight-ten years,” Mr Sharma of TCI said.

Within the domestic market, TNT has seen a huge demand across North and West; and the delivery destinations have been across the country.

Apart form the north and western parts of India, TCI sees significant bookings from Chennai.

mamuni@thehindu.co.in

Published on August 11, 2011 15:33