Date post: | 20-Jun-2015 |
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ITC E- CHOUPAL
Presented By:Sakina Mhowwala (104)Sheetal Rajani (109)Shikha Yadav (111)Surbhi Molasaria (130)Utkarsha Soni (138)
INTRODUCTION
India is second most populated country in the world.
Agriculture is the backbone of Indian economy. It contributed 26% of total GDP during 2003. It provides livelihood to about 65% of the labor
force and accounts for 8.56% of India’s export at that time.
Various constraints locking farmers into vicious cycle.
ABOUT ITC
Incorporated on August 24,1910 under the name of ‘Imperial Tobacco Company’.
Renamed as ‘ITC Limited’ in 1974. Features in Forbes A-List. Among top in-
Sustained value creationOperating profitsCash profits
Among the top companies in FMCG sector.
WHAT IS ITC E-CHOUPAL?
Developed by ITC agri-business division Brainchild of S Sivakumar. Promoted by YC Deveshwar, chairman ITC Launched in 2000 Benefits 4 million farmers in 40000 villages. Rural India’s largest Internet- based intervention
which combined Services & Effective Business Model successfully.
CHARACTERISTICS OF ITC E-CHOUPAL Customer centric Used for many commodities and multiple
transactions Uses local talent and local people and develops
local leaders Extended to local as well as global procures Nurtures local entrepreneurs Unique CRM program in commodity exports
THE WEBSITE
SYSTEM BEFORE ITC E-CHOUPAL
MANDI OPERATIONS
Inbound
Logistics
Display &
Inspection
Auction
Bagging &
Weighing
Payment
Outbound
Logistics
CONCEIVING THE IDEA
Tactical Imperative
Strategic Imperative
Social Imperative
ITC E- CHOUPAL SYSTEM
FARMERS
SANCHALAK
PC and INTERNE
T
CHOUPAL SAGAR
SAMYOJAK
ITC
IN OTHER WORDS…
ITC E- CHOUPAL PROCESSES
PricingInbound Logistic
s
Inspection,Grad
ing
Weighing
Payment
Hub Logistic
s
COMPARISON
TRANSACTIONS COSTS UNDER THE MANDI AND E-CHOUPAL SYSTEMS
SWOT ANALYSIS OF ITC E-CHOUPAL
STRENGHTS
Delivery of real –time information Immediate cash payment Easy access to any e- Choupal Sanchalak is educated & trained in computer operations. Low Transactional costs Transparent and Fast Process Use of Technology Provides additional information to Farmers
WEAKNESSES
Power unavailability in Rural India Poor Telecommunication Infrastructure Lack of proper roads, limiting vehicle access Competitors attempt to divert produce from
farmers
OPPORTUNITIES
Better supply chain for ITC s food and agri-business Access to the underserved rural markets New ITES business opportunities Shareholding value creation through servicing
society
THREATS
Bulk storage and handling hubs Demand for Unwarranted additional payments by the
Sanchalaks Threats to execution management due to speed of
expansion The strained Samyojak –ITC relationship.
CRITICAL SUCCESS FACTORS
Comprehensive knowledge of rural markets
Designing a win-win transaction model
Leveraging the logistics channel
Selection of Sanchalak
Evolving as appropriate user interface
Bottom-up model for entrepreneurship
BOTTOM OF PYRAMID MODEL It is referred to business model that
deliberately target the poorest socio-economic group constituting large part of community, often using new technology.
Concept given by C.K. PRAHALAD in his book “The fortune at the bottom of pyramid”.
E-choupal followed this approach targetting the farmers community and derived a profitable web based initiative.
CONCLUSION
E-Choupal has been most successful initiative to wire rural India and to involve the farmers in learning.
The success of e-Choupal has given new lessons to the corporate in the India and abroad.
THANK YOU