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ITC E-Choupal: Submitted To: Mr. Chandan Assistant Professor, DSM

ITC e-Choupal is a model that connects farmers in rural India to global markets through internet kiosks located in villages. Farmers can access real-time information on commodity prices, weather, and best farming practices. The model utilizes local leaders called "Sanchalaks" who operate the kiosks and help farmers. e-Choupal reduces transaction costs for farmers and increases their income through access to new markets and price information. The model has been successful and provided lessons for engaging with rural communities through local participation and leadership.

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Gaurav Beniwal
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58 views

ITC E-Choupal: Submitted To: Mr. Chandan Assistant Professor, DSM

ITC e-Choupal is a model that connects farmers in rural India to global markets through internet kiosks located in villages. Farmers can access real-time information on commodity prices, weather, and best farming practices. The model utilizes local leaders called "Sanchalaks" who operate the kiosks and help farmers. e-Choupal reduces transaction costs for farmers and increases their income through access to new markets and price information. The model has been successful and provided lessons for engaging with rural communities through local participation and leadership.

Uploaded by

Gaurav Beniwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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ITC e-Choupal

Submitted By :
Submitted To : Shubham Singhal- 2K18/MBA/68
Mr. Chandan Gaurav Beniwal-2K18/MB1/95
Assistant Professor,DSM Jagrati Sharma-2K18/MBA/114
INTRODUCTION

• India is the second most populated country in the world.


• Agriculture is the backbone of Indian economy.
• It contributes around 26% of total GDP.
• Agriculture provides livelihood to about 65% of the labour force and accounts for 8.56%
of India’s exports.
• The fragmented farms are constraining the risk taking ability of Indian farmer locking
him up into various cycle of :
low risk taking ability, low investment, low productivity, weak market orientation, low
value addition, low margin.
CONVENTIONAL VALUE CHAIN
E-CHOUPAL CONCEPTS

 E-choupal is a Hindi word which means “village meeting place”. Market is a meeting place
where vendors and customers come together to do transactions. It is a virtual market place
where farmers can transact directly with a processor and can realize better price for their
produce.
 The idea of creating and leveraging an electronic market place came from the
brainstorming session done by senior executives of ITC-IBD.
 The challenge of servicing the changing needs of global customers, competing with the
aggressive transnationals trading behemoths in a low margin agri-commodity business,
operating from a high cost economy like India and looking for alternative markets in the
period of recession were the basic business driver behind the new business model.
CONCEPTUALIZATION OF THE PROJECT

 What’s the best corporate business structure model for rural India?
 Does it require a new breed of leaders?
 What are the challenges that these leaders are facing?
 Will they have to work within new organizational structures?
IDENTIFYING THE PROJECT GOALS

 Helps enhance farm productivity by :

1. Disseminating latest information on district level weather foecasts for short & medium
terms.
2. Best practices in farming.
3. Supply of quality inputs (seeds, herbicide, fertilizer, pesticides etc) in the village itself.
 Helps improve price realization for farm produce by :

1. Making available live data on markets viz. location/buyer wise prices offered.
2. International market prices of relevant agri-commodities.
3. Historical & up-to-date information on supply & demand.
4. Expert opinion on expected future price movements.

 Helps minimize transaction costs in marketing farm produce by :

1. Buying output at the farmer’s doorstep.


2. Through transparent pricing & weight management practices.
UNIQUE BUSINESS MODEL : E-CHOUPAL

 ITC accumulates information regarding weather, modern farming practices and market
prices from sources like Meteorogical department, Agri-universities, mandis (regional
market) etc., and uploads all information on the e-Choupal website.
 It is an interlocking network of partnerships (ITC+Met Dept + Universities + Input Cos +
Sanyojaks, the erstwhile Commission Agents) bringing the “best-inclass” information,
knowledge and inputs.
 E-choupal is a model with a number of non-conventional characteristics namely :

1. Customer centric
2. Capable of being used for many commodities and multiple transactions.
3. Easily sclable once it is verified.
4. Uses local talent and local people and develops local leaders.
5. Stimulates local entrepreneurs to extend their innovativeness.
6. Uses all the existing institutions and legal frameworks and many others can join the market
as transaction time is low.
STAGES IN PRODUCT LIFE CYCLE
USERS OF THE PLATFORM &
BENEFITS DERIVED

 Greater interface with farmers, needing skills to be culturally sensitive and open to
generate new ideas.
 Employers required understanding villagers and their activities.
 Hierarchical and traditional management techniques had to be unlearned and the managers
had to adopt a whole new way of creating distributed leadership in the organization.
LOCAL LEADERSHIP DEVELOPMENT

 E-Choupal’s objective was to be achieved thru the application of technology, so internet


was used as the main component of implementation project.
 For building trust among the farmers towards the activities of ITC it was essential the
interface between farmers and company is from the village community itself and not
somebody from outside.
 Sanchalak was selected on the basis of their education, age, family size, caste, political
lineage and other affiliation.
ENCOURAGING LOCAL PARTICIPATION

 Market led business


 Growth in rural income
 Win-win situation
 Customization
 Cost reduction
CONVETIONAL TRANSACTIONS V/S
E-CHOUPAL COSTS
REVENUES
CRITICAL SUCCESS FACTOR

 Comprehensive knowledge of rural market.


 Designing a win-win transaction model.
 Leveraging the logistics channels.
 Selection of sanchalak.
 Evolving an appropriate user interface.
 Bottom up model for entrepreneurship.
REPLICATING THE EXPERIENCE

 The concept of e-choupal is applicable to any agricultural & allied activity in rural India.
 Consquently the supply chain efficiencies/revenue models vary across commodities &
geographies.
 The Tata group too has stepped in with its own plans, and that too with dual foray, one by
the Tata chemicals, the other by Rallis India.
CONCLUSIONS

 E-Choupal has been the most successful initiative to wire rural India and to involve the
farners in learning.
 The success of e-Choupal has given new lessons to the coporate in the India and abroad.

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