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HAPPY

TEACHERS

DAY


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I.T.CE-CH0UPAL

INDIRA SCHOOL OF CAREERDEVELOPMENT


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I.T.C

Indian tobacco company.

Chairman: Y.C. Deveshwar

Presence in tobacco, hotels, paper boards,foods, fashion retailing and commodity

export.Annual sale of $ 2 billion.


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International Business Division

Started in 1990.

Division of ITC engaged in exports of rangeof agricultural commodities.

Contributes over 60% of foreign exchange

earning.


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EE--ChoupalChoupal


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EE--ChoupalChoupal

Choupal is a hindi word which means avillage meeting place, and E here stands

for electronic so it is a village meeting placeon a electronic platform.

It is a virtual market place where vendors

and customers come together to dotransactions.


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EE--ChoupalChoupal

It is a virtual market place where farmerscan transact directly with a processor and

can realize better price for their products. ITC used a SYMBIOTIC-MICRONODAL

model. As both the parties were making

profits at different levels.


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The E-Choupal Services

Relevant & Real-time Information

Commodity prices, Local Weather, News

Customized Knowledge

Farm Management, Risk Management

Supply Chain for Farm Inputs

Screened for Quality, Demand Aggregation for CompetitivePrices & Efficient Logistics

Direct Marketing Channel Lower Transaction Costs, Better Value through Traceability

Products access @ door step @ reasonable prices


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Conventional Business Model


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Disadvantages of the Conventional

Business Model

Too many intermediaries.

Information asymmetry caused byintermediaries as they block flow ofinformation to farmers.


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E-Choupal Model


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Advantages

No hierarchy of brokers.

Internet is used as a low cost medium ofcommunication providing latest information.

Intermediaries are still used for physicaldelivery of produce maintaining low cost .


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E-choupals are set up by ITC with solarpower back up and VSAT connectivity. Theequipment cost for the E-choupal is borneby ITC.

Allow farmers to compare global and local

market price (Mandi)

Advantages


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Advantages

Actual procurement is done at factories andwarehouse hubs. The initial logging is done

through the e-choupal, which provides priceinformation and therefore price certainty.

To farmers they give access to operationalinformation developed by ITC experts,pertaining to cropping, seeds, fertilizers andso on.


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Transaction Costs in Mandi ChainSoybeans Example

Farmer Incurs

Trolley Freight to Mandi = 120Labour = 50Kacchha Adat = 150

Handling Loss = 50

Rs per MT

370

Processor

IncursCommission to Agent = 100Cost of Gunny Bags (net) = 75F

reight toF

actory = 120Handling at Mandi = 40335

Total Chain 705


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Transaction Costs in Choupal Chain

Trolley Freight to ITC Hub = 120Labour = 50

Kacchha Adat = 150Handling Loss = 50

Commission to Sanchalak = 100Cost of Gunny Bags (net) = 75Freight to Factory = 120

Storage & Handling at Hub = 40

50

Cash Disbursement Costs = 50


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The E-Choupal Infrastructure

ITC Kiosk with Internet Access In the house of one trained farmer,

Sanchalak

Within walking distance of target farmers.

Warehousing Hub

Managed by the erstwhile middleman,Samyojak ( coordinator )

Within tractorable distance of target farmers.


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The Privileged Assets of E-Choupal

1. ITC Infrastructure:

a. Computerb. Internet

c. VSAT

d. Power Backup : Solar Cells and UPS2. Physical Reach:

a. Choupals within walking distanceb. Multipurpose WH hubs within tractor able distance

3. Key Intermediaries:

a. Sanchalak (1 per cluster of 5-6 villages)b. Sanyojak (1 per group of 30-40 choupals)


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Key Success FactorSelfSufficient Infrastructure

Power Connectivity

Training


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24 Hubs Upgraded to Malls


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FACILITIES AT CHAUPAL SAGAR

A WIDE RANGE OF PRODUCTSFOR ALL SEGMENTS

TRAINING FACILITIESFOR FARMING COMMUNITY ON

SCIENTIFIC FARMING PRACTICES

GODOWNSFOR STORAGE OFFARM PRODUCE

INFORMATION CENTER FOR ONLINE WEATHER

INFORMATION

CONTINOUSSERVICESFROM 6AM- 9PM


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CSR Initiatives through e Choupal :

Sunerha Kal Sunerha Kal (CSR) Initiatives focus on

Improve Farmer Livelihoods,

Long Term Community Impact programmers,

Livestock Management programmers,

Water Management ,

Self Help Groups focusing on women.

Leveraging capability of

ITC s management skills,

e-choupal reach , human and physical Infrastructure,

The knowledge & experience of NGOs .


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Causeway cum Stop Dam , Nalkui

Earthern Dam Morewani ,MP


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Wheat

Soybean

Soybean

&Wheat

Coffee

Aqua

Wheat

Soybean

Soybean

&Wheat

Coffee

Aqua

Scale Today

Kiosks: 6,200

Villages: 40,000

Farmers: 3.5 million


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Future Plans

e-Choupal Now Next 5 Years

States covered 10 15

Villages covered 40,000 100,000

NO. of e-Choupals 6,500 20,000

Farmers e-empowered 4 million 10 million

For more : visit www.itcportal.com ITC e-Choupal


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Presented by

Kumar Gaurav (21)

Rahul Laddha (22)

Amit Lavharale (23)Mahesh Rathore (24)

Amit Mandal (25)

Mrityunjay Kumar (26)

Mukesh Pardashani (27)Nandan Kumar (28)

Naveen yadav (29)


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THANKS

THANKSDecember 21, 2010

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