India Post to be revamped into modern logistics powerhouse; targets 75% revenue from parcels and mail in three years: Scindia

India Post to be revamped into modern logistics powerhouse; targets 75% revenue from parcels and mail in three years: Scindia

Communications Minister Jyotiraditya Scindia on October 29 unveiled a transformation plan to recast India Post as a modern logistics and digital services powerhouse, setting a three-year target to make parcels and mail contribute 75% of its total revenue as part of a sweeping rebranding and modernization drive.

“I want our target to be that in the next three years, parcels and mails should be a minimum of 75% of our total revenue,” Scindia said at India Post’s quarterly performance review, calling it a central focus of the department’s next phase of growth.

Speaking at India Post’s quarterly performance review, Scindia said the organisation was entering a phase of “monumental change” — with new technology systems, product launches, and a revamp of post office infrastructure aimed at turning the world’s largest postal network into a competitive, profit-driven enterprise.

“We are in for not incremental, but monumental change,” Scindia said. “No one in the world has the penetration and capability of India Post — 1.65 lakh points of presence and a four-lakh workforce. We must become a cutting-edge logistics organization.”

India Post achieved Rs 3,324 crore, or 80%, of its second-quarter revenue target of Rs 4,200 crore, despite disruptions caused by natural calamities. The minister lauded Delhi and Telangana circles for outperforming their goals but flagged Kerala and Karnataka, which together accounted for 38% of the national shortfall, for urgent improvement.

Scindia directed 12 underperforming circles — including Odisha, Bihar, Chhattisgarh, Haryana, Himachal Pradesh, J&K, Maharashtra, Kerala, Karnataka, Tamil Nadu, West Bengal and Uttar Pradesh — to identify turnaround plans.

He also outlined upcoming milestones under India Post IT 2.0, with two new products set to launch in January and four more in March. A broader modernization push — building on the earlier Project Arrow — will begin with 18 post offices and expand nationwide, focused on automation, digitization, and efficiency gains of up to 4x.

Scindia urged all circle heads to act as “CEOs,” drive revenue diversification, and increase private sector business.

“If the ratio today is 80:20 in favour of government business, it should be 20:80 in five years — not by reducing government work, but by expanding the pie,” he said.

He also called for stronger reward systems, monthly performance reviews, and knowledge-sharing among circles to build a “family-like” organization culture. “Our goal is to make India Post an embodiment of Viksit Bharat — truly Vocal for Local, and Local to Global,” Scindia said.

As part of its transformation plan, India Post will conduct a detailed comparative study of global postal and logistics companies, including Royal Mail, Deutsche Post DHL, Japan Post, and Singapore Post, to identify best practices in automation, warehousing, and last-mile efficiency. The exercise, being steered by an international consultant, aims to help India Post evolve from a traditional mail carrier into a modern logistics company that can compete with private express delivery majors.

A team from the headquarters has already visited four to five countries to understand global standards in parcel management, digital integration, and customer experience. Scindia said these insights will shape India Post’s shift to a hub-and-spoke logistics model, backed by data analytics, automated sorting, and a unified tracking system for domestic and international shipments.