UPS' retail franchise plans face roadblock

The US-based $30-billion United Parcel Services (UPS), which plans to set up a network of retail franchise shops in the country under the brand name UPS Stores, may find the going tough.

The company's plans are likely to get stalled with the Centre's recent reluctance to allow foreign direct investment in retail. A section of the government does see it as an attempt to gain an indirect entry into retail.

Besides, the department of posts has objected to UPS' proposal, viewing it as a violation of the Indian Postal Act, which reserves the mail delivery system as a government function.

The proposed venture will be undertaken by Jet Air Business Solutions that will have a licence agreement with Mail Boxes Etc Inc, a UPS company. Jet Air will act as a UPS franchisee.

It will undertake sale of a variety of products and services through such stores, apart from providing delivery of packages, packing, shipping and, business and communication services.