itc echoupal

aashishatrey18@gmail.com

ASHISH ATREY

The ITC Group is one of the India’s largest private sector companies with a market capitalization of approximately US $ 4 billion and annual sales of US $ 2billion.

ITC has a diversified presence in cigarettes, hotels, paperboards, specialty papers, packaging, agricultural products, branded apparel, packaged foods &

The International Business Division (IBD) of ITC, started in 1990, exports agricultural commodities such as soybean meal, rice food grains (basmati &non basmati), wheat & wheat products, lentils, and coffee

Problem faced by ITC IBD

Lack of Quality product for export business

Cost of product was high due to intermediaries

Delay in supply

No direct link between farmer and company

Agri In

put R

eta

iler

Farmer

Pro

cessor

Kaccha

Adat

Pakka

Adat

Money Lender

Trader

Bro

ker

Dept o

f Agri V

LW

InputCos

SeedFertilizersChemicalsPractices

Sto

ckie

st

GovtUniv.

Met DepMSP

InsurancePracticesWeather

Steps taken by management

PLANNING•FROM THE BRAINSTORMING SESSION CONDUCTED BY, ITC-IBD SENIOR EXECUTIVE, CONCEPT OF E-CHOUPAL EMERGED.•WANT A WIN-WIN SOLUTION FOR BOTH COMPANY AND FARMERS

Agri In

put R

eta

iler

Farmer

Pro

cessor

Kaccha

Adat

Money Lender

Trader

Bro

ker

Dept o

f Agri V

LW

Input

Cos

Seed

Fertilizers

Chemicals

Practices

Sto

ckist

Govt

Univ.

Met Dep

MSP

Insurance

Practices

Weather

Choupal

Sanchalak

ORGANIZING

Problem of power supply is overcome by solution like solar energy.

Infrastructure.Connectivity problem was solved by upgrading BSNL

exchanges with RNS kits, Mobile Choupals,24x7 helpdesk etc.

Power

Connectivity

STAFFINGLocal leadership developmentTraining of sanchalakLocal participation

SANCHALAK

CONTROLLINGE-choupal is a centralized concept where all the

control remain in the hands of company.Itc has commission based salary to control the activity

of SANCHALAK

The Mandi Chain

Farmer Incurs

Trolley Freight to Mandi = 100Filling & Weighing Labour= 70Labour Khadi Karai = 50Handling Loss = 50

Rs per MT

270

ProcessorIncurs

Commission to Agent = 100Cost of Gunny Bags (net) = 75Labour (Stitching, Loading)= 35Labour at Factory (Unload)= 35Freight to Factory= 250Transit Losses = 10

505

Total Chain 775 V V2

The eChoupal Chain

Farmer IncursTrolley Freight to Mandi = 100Filling & Weighing Labour

= 70Labour Khadi Karai = 50Handling Loss = 50

Rs per MT

270

ProcessorIncurs

Sanchalak = 50Commission to Agent = 100Cost of Gunny Bags (net) = 75Labour (Stitching, Loading) = 35Labour at Factory (Unload) = 35Freight to Factory 100 = 250Transit Losses = 10

505

Total Chain775185

185

e-Choupal Now

States covered 10

Villages covered 40,000

No. of e-Choupals 6,500

Farmers e-empowered 4 million

ACHIEVEMENTS

.

Swot AnalysisSTRENGTH1) Local leadership2) Transparency in transaction3) Sanchalaks are selected carefully4) Flows of funds to the real owner5) Able to design a win-win model6) Bottom up model for entrepreneurship7) Real time information..WEAKNESS1) Difficulty in establishing e-choupal in new areas as it is not that easy task2) Value chains of different crops different problem.3) Implement & expanding of e-choupal

OPPORTUNITY1) Huge scope in other developing and underdeveloped countries.2) Entering in new products like coffee, aquaculture and wheat in other states.3) Opening up entirely new and more effective channels for distribution and marketing of a range of goods and services in rural India.4) Becoming tested market for new services like selling home appliances, consumers goods.

THERAT1)socio-economic characteristics of different areas is different thus common method cannot be applied.2)increasing competition from other player like Ruchi and Tata.3)supply chain, revenue models vary across commodities and geographic