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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As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system. 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 landholdings. The e-choupals stuyd as both a social gathering place for exchange of information choupal means gathering place in Hindi and an e-commerce hub. 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 Industry background Spurred by India’s need to generate foreign exchange, ITC’s International Business Division IBD was created in as an agri-trading company aiming to “offer the world the best of India’s produce”.
It is a manifestation of the integrity of stuey value systems that not a single case of theft, misappropriation, or misuse has been reported among the thousands of e-Choupals. What began as an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and other cropping systems in rural India has also created a highly profitable distribution and product design channel stuudy the Company. Back to Press Reports. How do we know when we achieve casw goals? In the mandi system, delivery, pricing, and sales happen simultaneously, thus binding the farmer to an agent.
Goals envisioned Two goals were envisioned igc information technology in the e-Choupal process. A local farmer acting as a sanchalak coordinator runs the village e-Choupal, and the computer usually is located in the sanchalak’s home. 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 vase to reach one.
The sustainability of the engagement comes from the idea that neither the corporate nor social agendas will be subordinated in favor of the other. Farmers have only an approximate idea casd price trends and have to accept the price offered to them at auctions on the day that they bring their grain to the mandi. The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming techniques.
Case Studies – ITC eChoupal
Select Year The e-Choupals are operated by a sanchalak operatorwho also doubles up as an ITC salesman. Kiler Echlupal Who could create more value with our customer base than we can? They also handle the physical transportation of the goods and earn a commission on it.
The agricultural system has also traditionally been unfair to primary producers. The business model 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.
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. The effort placed computers with Internet access in rural farming villages. For an Indian company to replicate the operating model of such multinational corporations would have required a massive horizontal and vertical expansion.
The intermediaries were not removed from the value-chain, instead they were made as samyojaks coordinators who assist ITC in setting up new e-choupals.
Today its network reaches more than a million farmers. 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. Large international companies had better margin-to-risk echoupql because of wider options for risk management and arbitrage. E-choupal brought about a strategic chage to the process: ITC gains as intermediaries are removed, and transportation costs decrease.
Jump to Top Navigation. 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 sstudy, and improve their productivity and incomes. As a result, traders are itv positioned to exploit both farmers and buyers through practices that sustain system-wide inefficiencies. Archives Select Year Agriculture is vital to India.
If the farmer finds the quote attractive, he can take the produce to an ITC collection centre and receive payment within two hours. The model is centered on a network of e-Choupals that serve both as a social gathering place for exchange of information and ic e-commerce hub. Why is it Innovative. Copyright The DeSai Group. Today, IBD is over Rs crore company that trades in commodities such as feed ingredients, food-grains, coffee, black pepper, edible nuts, marine products, and processed fruits.
Because of the Green Revolution, India’s agricultural productivity has improved to the point that it is both self-sufficient and a net exporter of a variety of food grains.