MoneyGram to focus on Punjab

Firm ropes in singer Malkit Singh for brand promotion during Baisakhi

MoneyGram International, a $970 million global money transfer company, is planning to focus on Punjab in a big way, because a large number of people settled or working abroad belong to the this region.

The company officials who were in Chandigarh to widen their network in Punjab said it was only last year that the company's focus shifted to India. Now, they feel that within India, it is Punjab where there is huge business potential.

Talking to Business Standard, Regional Product and Marketing Manager (Asia-Pacific and Indian Sub Continent) Sabrina Chan said, "There is a large presence of NRIs from Punjab who are remitting money to their relatives in the state. But the service is not up to the desired standard due to low competition. Our presence will lead to higher service standards at more competitive prices. According to a World Bank report, about $21.7 million were remitted to India in 2005. We believe that a major part of this amount goes to Punjab. To make our presence stronger, we are focussing on doing road shows and channel merchandising, covering all areas in Punjab. We feel that roadshows are the best way to connect people with us. We would also be advertising aggressively on the regional channels."

Talking about her current visit to Chandigarh, she said, "We want to capitalise on the Baisakhi festival in Punjab because in this period a large amount of remittance is done by NRIs. We want to work with our agents in Punjab to increase awareness of our brand and educate the public about our services. We would be kicking off our campaign in all the areas from today. Similarly, Malkit Singh, who is a popular artist in Punjab will feature as our brand ambassador in the Baisakhi period."

"We do not have the largest presence in India, but we are concentrating on becoming one. We are looking for double digit growth by the end of this year. Currently, we have eight partners, but we are scouting for more partners like banks and post offices in India to widen our network and in the process of adding staff," said Zainab Ali, marketing manager, international markets.

She further said increased network would ultimately benefit the customers as their prices are comparatively very low than other major players.

"Currently, we have approximately 89,000 money transfer agent locations in about 170 countries around the world. Our network expansion would benefit the estimated 20 million overseas Indians who send money home to their families. Just to give an example, we charge $19 for $1000-2500 transfer, whereas other major players charge about $30 for remitting the same amount of money from the US to India," she added, while refusing to divulge the market share of the company.