itc e choupal ppt final 111114132618 phpapp01 copy
TRANSCRIPT
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LOGO ITC won the top UNIDO Award at the International Conference on
Sharing Innovative Agri Business Solutions at Cairo (2008)
ITC was the 1st Indian Company and 2nd in the world to win theDevelopment Gateway Award for its trail-blazing e-Choupal initiative(2005).
ITC's e-Choupal initiative received the Inaugural World Business Award from UNDP (2004).
ITC e-Choupal won the Stockholm Challenge Award (2006).
ITC's Agri Business has bagged the RuralMarketing Association of India(RMAI) Flame Award 2013 in the category of Excellence in BrandPromotion.Recognising ITC-ABD's effort, the Government of India has conferred onit the coveted "Golden Star Trading House" status. ABD has earnedmany awards from the Government and various trade organisationsduring the past decade for being one of the topmost exporters insoyameal, rice etc. This impressive track record symbolises ABD'sunbeatable Sourcing and Execution Strength.
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Low Risk Appetite
Weak MarketOrientation
Low InvestmentLow Margins
Low ProductivityLow Value Addition
Caught in a vicious
cycle ofunderdevelopment
Predicament of Indian Farmers
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ITC e-ChoupalMillenial Venture38,000 villages, 6500 kiosks & 9 states
Services cum Effective Business ModelIssues
1.Fragmented farms1. Weak institutions2. Involvement of intermediaries3. Information Asymmetry
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Why ITC thought of e-Choupal
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The TacticalImperative
Capture of Intra-dayPrice shifts
Seasonal price Inflation
Daily price inflation
ITCs distance from
Farmer
The StrategicImperative
Horizontal spread
Vertical presence
Risk management
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ITCs Supply chain of Soya bean before e -ChoupalInitiative
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Farmer
Agri-InputCompanies
Dealer/Stockiest
Retailer
Agril University,Met Dept,
Insurance Co.
VLW (of Dept ofAgriculture)
MoneyLender
Pakka Adtiya(Registered Dealer)
Kaccha Adtiya(Un-Registered Dealer)
Trader
Broker
P r o c e s s o r
ITC-IBD
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ITCs Supply chain of Soya bean after e -ChoupalInitiative
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Supply chain of e-choupal
PricingPrice Benchmarkede-Choupal Portal Mandi PricesSanchalak Activities
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Pricing InboundLogisticsInspection
Grading WeighingandPayment
HubLogistics
Technologicalsupport
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Inbound LogisticsITC Procurement HubITC factories or Warehouse OperationsProximity of Processing Centres
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Pricing InboundLogisticsInspection
Grading WeighingandPayment
HubLogistics
Technologicalsupport
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Inspection and GradingLaboratory TestsIncentives to encourage Quality
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Pricing InboundLogisticsInspection Grading
WeighingandPayment
HubLogistics
Technologicalsupport
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Weighing and PaymentElectronic WeighbridgeFull - cash PaymentFreight ExpensesDocumentationSamyojaks
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Pricing InboundLogisticsInspection Grading
WeighingandPayment
HubLogistics
Technologicalsupport
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Hub LogisticsStorage HubTransportation CostRisk of Transportation
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Pricing InboundLogisticsInspection Grading
WeighingandPayment
HubLogistics
Technologicalsupport
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Technological supportNodal PlatformBusiness Function PointsIntegrated Business Systems8 Local Languages
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Pricing InboundLogisticsInspectionGrading
WeighingandPayment
HubLogistics
Technologicalsupport
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Other e-Choupal Initiative
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Companies using e-Choupal
network
Source: Seminar on Bottom of the Pyramid and CSR, IIM-K, Sept. 24, 2008
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Win-Win for all
Farmer Community
Access to information Empowered decisions
Improved agricultureEconomic BenefitsDignity RespectedKnowledge of Goods and ServicesCo-opted in Product DesignPromise of a Brighter Future
ITC
Procurement CostsDirect InteractionDistribution ChannelMarket Intelligence
Commission Agents
(Kachha & Pakka
Adatiyas)
Access to Global Markets
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Future of e-Choupal
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e-Choupal 2.0
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ITC e-Choupal Footprint
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