ITC ECHOUPAL CASE STUDY PDF

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Beginning in , ITC set up a network of ICT kiosks around the country, called e-Choupal (an open meeting place in a village). IT for Change Case Study. ITC has a diversified presence in Cigarettes, Hotels, Paperboards of rural value systems that not a single case of theft, misappropriation. The ITC e-Choupal Initiative Case Analysis by Group 7 Jigeesha Nayyar | KC Siddharth | 03? Kunjal Kaw | Mohit Sadhwani | Naman Misra |

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Bythe opening up of the Indian market had brought in international competition.

They also handle the physical transportation of the goods and earn a commission on it. Kiler Questions Who could create more value with our customer base than we can? Privacy Policy Designed by Smitinfotech. In the mandi system, delivery, pricing, and sales happen simultaneously, thus binding the farmer to an agent.

Press Report Back to Press Reports. The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming techniques. The company expects each e-Choupal to serve about 10 villages within a five-kilometer radius. Initially, the agricultural commodity trading business cse small compared to international players.

Case Studies

A farmer can visit the kiosk and show a sample of his produce to the sanchalak, who gives him a quote. It produces 23 per cent of the GDP, feeds a billion people, and employs 66 per cent of the workforce. ITC has plans to saturate the sector in which it works with e-Choupals, such that a farmer has to travel no more than five kilometers to reach one. Farmers using e-Choupal on an average receive 2.

The Chairman of ITC challenged IBD to use information technology to change the rules of the game and create a competitive business that did not need a large asset base.

ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support. Sustainability through mutual respect The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.

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One of India’s foremost private sector companies, which has a diversified presence in tobacco, hotels, paperboards, specialty papers, packaging, agri-business, branded apparel, packaged foods and other fast moving consumer goods, initiated e-choupal in It is noteworthy that ITC did not hesitate to install expensive IT infrastructure in places where most people would be wary of visiting overnight.

Select Year E-Choupal was seen as a medium of delivering critical market information independent of the mandi, thus allowing the farmer an empowered choice of where and when to sell his crop. ITC’s example also shows the key role of information technology – in this case provided and maintained by a corporation, but used by local farmers – in helping to bring about transparency, to increase access to information, and to catalyse rural transformation, while enabling efficiencies and low cost distribution that make the system profitable and sustainable.

How do we know it is effective? It was also designed to play the role of a social gathering place, for the exchange of information as well as a place for e-commerce transactions. Yet most Indian farmers have remained quite poor.

Goals envisioned Two goals were envisioned for information technology in ccase e-Choupal process. The effort placed computers with Internet access in rural farming villages.

e-Choupal: Networking rural India

Copyright The DeSai Group. This can be exchanged for other ITC products. Web-enabled real time data on crop prices provide the farmer with the market prices for their produce. The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement. ITC also uses e-Choupal as a medium to advertise consumer products.

As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system. Jump to Sub Navigation. The sustainability of the engagement comes from the idea that neither the corporate nor social agendas will be subordinated in favor of the other.

It is a manifestation of the integrity of rural value systems that not a single case of theft, misappropriation, or misuse has been reported among the thousands of e-Choupals.

Its International Business Division was created in for trading in agricultural commodities. This also provided indirect benefits to the company reducing the risk in several areas of utc supply chain eChoupal also provided ITC with an effective marketing vehicle. The intermediaries were not removed from the value-chain, instead they were made as samyojaks caxe who assist ITC in setting up new e-choupals. Farmers have only an approximate idea of price trends and have to accept the price offered to them at auctions on the day iitc they bring their grain to the mandi.

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Sstudy brought about a strategic chage to the process: Critical factors in the apparent success of the venture are ITC’s extensive knowledge of agriculture, the effort ITC has made to retain many aspects of the existing production system, including retaining the integral importance of local partners, the company’s commitment to transparency, and the respect and fairness with which both farmers and local partners are treated.

The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient echoupap.

Today its network reaches more than a million farmers. For an Indian company to replicate the operating model of such multinational corporations would have required a stuey horizontal and vertical expansion. Agriculture is vital to India. What began as an effort to re-engineer the procurement process for ccase, tobacco, stuxy, shrimp, and other cropping systems in rural India has also created a highly profitable distribution and product design channel for the Company.

E-choupal has also established a low-cost fulfillment system focused on the needs of rural India that has helped in mitigating rural isolation, create more transparency for farmers, and improve their productivity and incomes. By providing information on weather and scientific farming methods, and the supply of high quality farm inputs, ITC enabled the farmers to improve their efficiency and quality of their output.

Jump to Main Navigation. The e-choupals serve as both a social gathering place for exchange of information choupal means gathering place in Hindi and an e-commerce hub. In the Mandi, the following operational process was followed: