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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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 echoulal farmers and rural communities as well as company shareholders.
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. Its International Business Division was created in for trading etudy agricultural commodities. In the Mandi, the following operational process was followed: Farmers using e-Choupal on an average receive 2. It was also designed to play echlupal role of a social gathering place, for the exchange of information as well as a place for e-commerce transactions.
The ITC e-Choupal Initiative Case Analysis by Group 7 | Raghav Singla –
Kiler Questions Who could create more value with our customer base than we can? Farmers have only an approximate idea of price trends and have to accept the price offered to them at auctions on the day that they bring their grain to the mandi. 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. Back to Press Reports. ITC gains as intermediaries are removed, and transportation costs decrease.
Copyright The DeSai Group. The business model The model is centered on a network of e-Choupals that serve ktc as a social gathering place for exchange of information and an e-commerce hub.
Large international companies had better margin-to-risk ratios because of wider options for risk management and arbitrage. The company expects each e-Choupal to serve about 10 villages within a five-kilometer radius. As a result, traders are well positioned to exploit both farmers and buyers through practices that sustain system-wide inefficiencies.
ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support. Web-enabled real time data on crop prices provide the farmer with cqse market prices for their produce. The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient landholdings.
The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement. It is noteworthy that ITC did not hesitate to install expensive IT infrastructure in places where most people would be wary of visiting overnight. What started initially as a way to modify the procurement process for crops like soy, and wheat, has now turned into a lucrative distribution and product development channel for ITC.
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.
A farmer can visit the kiosk and show a sample of his produce to the sanchalak, who gives him a quote. The model is centered on a network of e-Choupals that serve both as a social gathering place for exchange of information and an e-commerce hub. ITC also uses e-Choupal as a medium to advertise consumer srudy. Yet most Indian farmers have remained quite poor. 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 Press Report Back to Press Reports.
This can be exchanged for other ITC products. The intermediaries were not removed from the value-chain, instead they were sstudy as samyojaks coordinators who assist ITC in setting up new e-choupals.
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. The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming eechoupal.
In the mandi system, delivery, pricing, and sales happen simultaneously, thus binding the farmer to an agent.
Jump to Sub Navigation. Industry background Spurred by India’s need to generate foreign exchange, ITC’s International Business Division IBD stdy created in as an agri-trading company aiming to “offer the world the best of India’s produce”.
The first was the deelivery of real-time information independent of the transaction.
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 czse 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.