The two have signed an agreement wherein both will leverage their core strengths to realise the business potential offered by today's global economy.

The two are launching Overnite's US Smart Sewa service from India to any part of the US and the US territories through the vast network of USPS. Pitched on the `value for money' plank, the US Smart Sewa service rates are aggressively priced at Rs 500 per document. The service is an extension of Overnite's cost effective and volume-driven domestic service Smart Sewa launched last year.

The $7-billion USPS though armed with a strong network of 80,000 employees is plagued with a peculiar problem: 98 per cent of its revenue comes from its domestic market and only 2 per cent comes from the international market. ``Competition has increased significantly but we think the market is highly underserved and overpriced,'' Mr Robert J Edwards, director, Asia Pacific region, global business development, USPS said.

As a strategic decision to improve its international sales, the US Postal Service decided to start its Global Business Development wing andteam up with well-established private packaged service providers in every major commercial market in the world to provide service into the US.According to Mr Edwards, with the new alliances, USPS hopes to increase its international sales from 2 per cent to 15 per cent by the year 2006. ``Our goal is to be a strong international player and be the best value provider,'' he said.

Overnite is expecting a 20 per cent increase in its turnover in 2001.