itc e-choupal and saagar
DESCRIPTION
TRANSCRIPT
A Comparative Study
ITC – e Choupal
E – Choupal (June 2000)
An initiative of ITC Limited to link directly with rural farmers via the Internet for procurement of agricultural & aquaculture products
The programme involves the installation of computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information.
Initial Objective:⋗ Access to target soya producing markets & achieve organized
buying over the current Indian soya procurements systems in long term
Mid Objective:⋗ Access to key agricultural/products producing markets & achieve
organized buying & selling in key Indian rural markets
Current Objective:⋗ To expand the network further & offer a complete package to
server rural customer daily needs & develop the platform for the future (to get services like web tourism)
To Develop a Channel Directly Linking farmers to Organizations:
The eChoupal infrastructure
• ITC Kiosk with Internet Access and Local Language Content (Weather, Prices, Farming Practices etc)– In the house of one trained farmer, Sanchalak – Within walking distance of target farmers
• Warehousing Hub with Internet Access– Managed by the erstwhile middleman, Samyojak– Within tractorable distance of target farmers
The ITC eChoupal Scale
Today– 6500 Choupals are serving over 4million farmers & villagers
across 40000 villages (adding 6 a day)• Higher capture of consumer spend• Building capacities of rural communities
Vision– Reach 100,000+villages by 2012• Dealing with wider variety of crops• Creating infrastructure for Education and Healthcare
services• Enhancing Quality of Life in rural India
E-choupal: Strategic Thrust
Procurement: cost & quality optimizationo Strategic sourcing support to the Foods business (support creation of
verticals in wheat, soya, corn, potato etc.)o Cost-effective sourcing for exports/domestic external business
Rural Distributiono ‘Last mile connectivity’: 100 partnering companieso Diverse range of goods/services: FMCG, consumer durables, agri-inputs,
paid extension services etc. Financial Services
o Insurance (focus: weather)o Credit (focus: Kisan Credit Card scheme)
Rural retailo 24 Choupal Saagars operational
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E- Choupal Saagar – Benefits to a Farmer
• Option of selling to Choupal Saagar or Mandies• In some crops, farmers earns 25% higher prices than
selling to Mandies• Profit realization increased upto 60%• Availability of Loan facilities• Availability of brands/quality products at best prices• Exposure to latest information
• Difference in net earning will be high if saving on commission to middle man & cost of transport are considered
Main Competitiors
Godrej Aadhar – Godrej Kisan Seva Kendra - IOC Tata Kisan Sansar - TATA
Chemicals Mahindra Subh Labh – M&M HUL iShakti – HUL Parry’s Conner - Murugappa
Group
Conclusion
• An innovative strategy which is elaborative & extensive in rural markets so far.
• Rural wealth creation in agriculture through securing empowerment, collaboration & competition
• A transformational initiative for sustainable development of society
• Commitment to transparency & the respect & fairness with which both farmers & local partners are treated.
Venkatesh. BInderveer Singh .B
Thank You