Ashish Sharma8787

8/8/2019 Ashish Sharma8787

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The ITC Group is one of the Indias largest private sectorcompanies with a market capitalization of approximately US $ 4

billion and annual sales of US $ 2billion.

ITC has a diversified presence in cigarettes, hotels, paperboards,specialty papers, packaging, agricultural products, brandedapparel, packaged foods &

The International Business Division (IBD) of ITC, started in1990, exports agricultural commodities such as soybean meal,

rice food grains (basmati &non basmati), wheat & wheatproducts, lentils, and coffee


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Problem faced by ITC IBD

Lack of Quality product for export business

Cost of product was high due to intermediaries

Delay in supply

No direct link between farmer and company


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Agri

Inp

ut

Retailer

Farmer

Processor

Kaccha

Adat

Pakka

Adat

Money Lender

Trader

Broker

Dept

of

A

gri

VLW

InputCos

Seed

FertilizersChemicalsPractices

S

tockiest

Govt.Univ

Met DepMSP

InsurancePracticesWeather


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Steps taken by management

PLANNING ,FROM THE BRAINSTORMING SESSION CONDUCTED BY- , -ITC IBD SENIOR EXECUTIVE CONCEPT OF E CHOUPAL

.EMERGED - WANT A WIN WIN SOLUTION FOR BOTH COMPANY AND

FARMERS


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Agri

Input

Retailer

Farmer

Processor

Kaccha

Adat

Money Lender

Trader

Broker

Dept

of

Agri

VLW

Input

CosSeedFertilize

rsChemicalsPractices

Stockist

Govt

.UnivMet DepMSP

InsurancePracticesWeather

Choupal

Sanchalak


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ORGANIZING

Problem of power supply is overcome by solution like solarenergy.

Infrastructure.

Connectivity problem was solved by upgrading BSNL

exchanges with RNS kits, Mobile Choupals,24x7 helpdesketc.

Power

Connectivity


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STAFFINGLocal leadership developmentTraining of sanchalak

Local participation


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SANCHALAK


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CONTROLLINGE-choupalis a centralized concept where all the control

remain in the hands of company.

Itc has commission based salary to control the activityof SANCHALAK


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he Mandi Chain

armer Incursrolley Freight to Mandi = 100&illing Weighing Labour = 70abour Khadi Karai = 50andling Loss = 50

s per MT

270

ProcessorIncurs

ommission to Agent = 100( )ost of Gunny Bags net = 75( , )abour Stitching Loading = 35( )abour at Factory Unload = 35reight to Factory = 250ransit Losses = 10505

otal Chain 775 V V2
http://backup/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/FACTORY_WEIGHMENT.MPGhttp://backup/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/FACTORY_WEIGHMENT.MPGhttp://backup/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/FACTORY_WEIGHMENT.MPGhttp://smb//tmp/BACKUP/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/CHOUPAL_PRICE_INFERMATION.MPG


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he eChoupal Chain

armer Incurs rolley Freight to Mandi = 100&illing Weighing Labour =70 abour Khadi Karai = 50andling Loss = 50

s per MT

270

ProcessorIncurs

Sanchalak = 50ommission to Agent = 100( )ost of Gunny Bags net = 75( , )abour Stitching Loading = 35( )abour at Factory Unload = 35reight to Factory 100= 250ransit Losses = 10

505

otal Chain 775185

185


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e-Choupal Now

States covered 10

Villages covered 40,000

No. of e-Choupals 6,500

Farmers e-empowered 4 million

ACHIEVEMENTS


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. wot AnalysisSTRENGTH)1 Local leadership

)2 Transparency in transaction)3 Sanchalaks are selected carefully)4 Flows of funds to the real owner) -5 Able to design a win win model)6 Bottom up model for entrepreneurship) .7 Real time information.

WEAKNESS1) Difficulty in establishing e-choupal in new areas as it is not that

easy task2) Value chains of different crops different problem.3) Implement & expanding of e-choupal


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OPPORTUNITY)1 Huge scope in other developing and underdeveloped

.countries) ,2 Entering in new products like coffee aquaculture and

.wheat in other states)3 Opening up entirely new and more effective channels for

distribution and marketing of a range of goods and.services in rural India

4) Becoming tested market for new services like selling homeappliances, consumers goods.THERAT) -1 socio economic characteristics of different areas is

.different thus common method cannot be applied)2 increasing competition from other player like Ruchi and

.Tata3)supply chain, revenue models vary across commodities andgeographic

Ashish Sharma8787

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