Mailroom Management Solution. Avon Solutions & Logistics Pvt. Ltd. Mailroom Market - India
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1 Mailroom Management Solution By Avon Solutions & Logistics Pvt. Ltd. Mailroom Market - India
2 Mailroom Business in India (then & now) Disintegrated relationship In 1998 Mailroom industry then (other than AVON) Mailroom industry then (other than AVON) Non existent; Was called as despatch section Non existent; Was called as despatch section Only manpower contracts Only manpower contracts No knowledge about courier or post No knowledge about courier or post Even FM companies were handful Even FM companies were handful Corporates then Corporates then Very few were outsourcing, and only manpower Very few were outsourcing, and only manpower Very large transnational companies started the Very large transnational companies started the trend trend Process or automation were never even thought Process or automation were never even thought off. off. Was mostly triggered by VRS measures in Was mostly triggered by VRS measures in banks banks All other mail dependent industries were very All other mail dependent industries were very dormant. Mobile telephony just started, Retail dormant. Mobile telephony just started, Retail banking was one of the lowest in the world, banking was one of the lowest in the world, Insurance was just about to open up, general Insurance was just about to open up, general economy growth rate was slow economy growth rate was slow Mailing industry then Mailing industry then Many top line players & even fly by night Many top line players & even fly by night operators in courier operators in courier Post lost close to 45% mail market share to Post lost close to 45% mail market share to courier courier Very high rates and non standard, so no control Very high rates and non standard, so no control on high mailing costs on high mailing costs Direct relationship with client employees, no Direct relationship with client employees, no Top courier companies handled top corporate Top courier companies handled top corporate accounts accounts Growing relationship In 2005 Corporates now Corporates now All mail dependent industries have opened up All mail dependent industries have opened up Mail volumes have gone up substantially Mail volumes have gone up substantially Corporates are clueless on growth demands in terms of manpower and Corporates are clueless on growth demands in terms of manpower and expertise. expertise. Unable to handle many courier companies especially for domestic and Unable to handle many courier companies especially for domestic and cross border mailing cross border mailing Single point accountability and constant manning are the key criteria. Single point accountability and constant manning are the key criteria. But Transnationals who have experienced outsourced But Transnationals who have experienced outsourced management in other countries usher in the concept of Integrated management in other countries usher in the concept of Integrated management management Blurring relationship Mailing Industry Mailing Industry Top line consolidation of players taken place; International courier Top line consolidation of players taken place; International courier players are very keen in India. players are very keen in India. Still, Medium and Smaller players exist in large numbers Still, Medium and Smaller players exist in large numbers Market share of top players is less than 25%, balance is fragmented Market share of top players is less than 25%, balance is fragmented between smaller players between smaller players Market growth rate is much higher than individual player growth rate Market growth rate is much higher than individual player growth rate Courier Rates are converging Courier Rates are converging Top courier players understand professionally run s have Top courier players understand professionally run s have process synergies process synergies Growing relationship Mailroom industry now (other than Avon) Mailroom industry now (other than Avon) Many FM companies offering management Many FM companies offering management Have manpower management, better processes and basic automation Have manpower management, better processes and basic automation Little knowledge about courier or post Little knowledge about courier or post Couriers still finalise rates with clients Couriers still finalise rates with clients
3 What is required of a Mailroom player? - Future Mailroom Mailroom expertise/ expertise/ competency competency Benchmarking Benchmarking with with International International models models to to cater cater to to transnationals transnationals Local Local flavour/ flavour/ labour labourlaws laws End End user user industry industry background, background, Finger Finger print print solution solution Sensitivity Sensitivity to to industry industry requirements requirements Deep Deep domain domain knowledge knowledge Automation Automation & Integration Integration Technology Technology adoptions; adoptions; Maximum Maximum automation automation Integrated Integrated solution solution People, People, process process & technology technology Courier Courier Industry Industry background background To To enable enable thorough thorough understanding understanding of of the the heterogeneous heterogeneous Indian Indian Mail Mail market market To To enable enable Courier Courier management, management, contract contract negotiation, negotiation, cost cost saves saves etc. etc.
4 Who will drive the demand? Largest aspirational class in the world, so RAPID GROWTH ACROSS MANY VERTICALS SIMULTANEOUSLY; The top 5 verticals are simultaneously chasing about 250 million population (Rapid growth sectors) Each of them require solution for different purposes Telephony Expected to reach 250 million people by 2010 Reached 30 million to 100 million in 3 years Intensive domestic mailing needs and inbound mail management Insurance BPO Banking 4% of population at present; to reach 15% by 2010 Very high requirement of expertise for domestic mailing, pre-processing of mails, MIS 4,00,000 people to be employed by 2008 (30 to 40% CAGR) High cross border mailing & inbound personal mails Require Front end solutions with latest technology options Require about 50 professionals for every 5000 people employed Retail banking has lowest penetration in the world; Rapidly growing market High level of corporate banking activities too; Inter bank mailing needs high Intensive domestic & cross border mailing Opening up of Government sector for outsourcing will drive huge demand About professionals by 2008/2010
5 Mailroom Industry India Demand Analysis* ( ) Range (Deal size( ann.) Rs.in Crores Players Mkt Size Type of players Large co.s 27% Sectorwise Demand About Rs.3.0 Cr Telco, BFSI About Rs.1.5 Cr Foreign & Pvt. Banks About Rs.75 lacs < Rs.25 lacs Total (approx.) Rapid Growth Sectors: BFSI & Telecom Dynamic requirement Can cope up only with outsourcing High volume of business and intensive activity Large branch network In large cities will operate with multiple satellite s Integration of Inter branch s may also be required MNC s, Very large Co.s Large Corporates High yielding sectors: MNC s & Very large Corporates Have Global trade & commerce interests; Have high volume of cross border mail Medium branch network; High activity in metros only Integration of branch s Keen in IT adoption, cost reduction, value creation at the end Intensive cross-border/ Domestic mailing expertise required MNC's, Very large co.s 27% BFSI, Telecom 46% Necessity driven sectors: Business Centers & Tech parks which seeks professional facilities management Follow global trends in facility management, which includes management Keen in low cost of operations Has to service multiple clients Keen in Value for money benefit Collective volumes of Intra-city, Domestic, International will be reasonable * - Internal Estimates Already covered All sectors have high mailing volumes
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