DHL and state-run India Post are said to be in negotiations to form some type of joint venture that would allow DHL access to India Post’s huge distribution footprint reaching across the entire country, according to Indian media reports.

In exchange for this delivery network, India Post would benefi t from DHL’s technological and organisational capabilities. Although DHL already has a very signifi cant presence in the market through its ownership of air express operator Blue Dart, its network is confi ned to urban areas. Nor does Blue Dart have a presence in the North East of the country.

While the fast growing Indian market has piqued the interest of all the major integrators, the market’s immaturity presents signifi cant risks, especially its regulatory regime.

There are presently plans being discussed by the Indian government to regulate all courier and express operators as well as impose a double-tax on them to fund the Universal Service Obligation (USO) of the Department of Posts.