itc e- choupal

ITC E- CHOUPAL

Presented By:Sakina Mhowwala (104)Sheetal Rajani (109)Shikha Yadav (111)Surbhi Molasaria (130)Utkarsha Soni (138)

INTRODUCTION

India is second most populated country in the world.

Agriculture is the backbone of Indian economy. It contributed 26% of total GDP during 2003. It provides livelihood to about 65% of the labor

force and accounts for 8.56% of India’s export at that time.

Various constraints locking farmers into vicious cycle.

ABOUT ITC

Incorporated on August 24,1910 under the name of ‘Imperial Tobacco Company’.

Renamed as ‘ITC Limited’ in 1974. Features in Forbes A-List. Among top in-

Sustained value creationOperating profitsCash profits

Among the top companies in FMCG sector.

WHAT IS ITC E-CHOUPAL?

Developed by ITC agri-business division Brainchild of S Sivakumar. Promoted by YC Deveshwar, chairman ITC Launched in 2000 Benefits 4 million farmers in 40000 villages. Rural India’s largest Internet- based intervention

which combined Services & Effective Business Model successfully.

CHARACTERISTICS OF ITC E-CHOUPAL Customer centric Used for many commodities and multiple

transactions Uses local talent and local people and develops

local leaders Extended to local as well as global procures Nurtures local entrepreneurs Unique CRM program in commodity exports

THE WEBSITE

SYSTEM BEFORE ITC E-CHOUPAL

MANDI OPERATIONS

Inbound

Logistics

Display &

Inspection

Auction

Bagging &

Weighing

Payment

Outbound

Logistics

CONCEIVING THE IDEA

Tactical Imperative

Strategic Imperative

Social Imperative

ITC E- CHOUPAL SYSTEM

FARMERS

SANCHALAK

PC and INTERNE

T

CHOUPAL SAGAR

SAMYOJAK

ITC

IN OTHER WORDS…

ITC E- CHOUPAL PROCESSES

PricingInbound Logistic

s

Inspection,Grad

ing

Weighing

Payment

Hub Logistic

s

COMPARISON

TRANSACTIONS COSTS UNDER THE MANDI AND E-CHOUPAL SYSTEMS

SWOT ANALYSIS OF ITC E-CHOUPAL

STRENGHTS

Delivery of real –time information Immediate cash payment Easy access to any e- Choupal Sanchalak is educated & trained in computer operations. Low Transactional costs Transparent and Fast Process Use of Technology Provides additional information to Farmers

WEAKNESSES

Power unavailability in Rural India Poor Telecommunication Infrastructure Lack of proper roads, limiting vehicle access Competitors attempt to divert produce from

farmers

OPPORTUNITIES

Better supply chain for ITC s food and agri-business Access to the underserved rural markets New ITES business opportunities Shareholding value creation through servicing

society

THREATS

Bulk storage and handling hubs Demand for Unwarranted additional payments by the

Sanchalaks Threats to execution management due to speed of

expansion The strained Samyojak –ITC relationship.

CRITICAL SUCCESS FACTORS

Comprehensive knowledge of rural markets

Designing a win-win transaction model

Leveraging the logistics channel

Selection of Sanchalak

Evolving as appropriate user interface

Bottom-up model for entrepreneurship

BOTTOM OF PYRAMID MODEL It is referred to business model that

deliberately target the poorest socio-economic group constituting large part of community, often using new technology.

Concept given by C.K. PRAHALAD in his book “The fortune at the bottom of pyramid”.

E-choupal followed this approach targetting the farmers community and derived a profitable web based initiative.

CONCLUSION

E-Choupal has been most successful initiative to wire rural India and to involve the farmers in learning.

The success of e-Choupal has given new lessons to the corporate in the India and abroad.

THANK YOU