E Chaupal

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Short ppt on E-choupal CSR of ITC

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  • TAPDK, Turkey's Tobacco and Alcohol Regulatory Authority, should request this kind of information platform for the farmers in Turkey as well!
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E Chaupal

  1. 1. HAPPY TEACHER’S DAY
  2. 2. I.T.C E-CH0UPAL INDIRA SCHOOL OF CAREER DEVELOPMENT
  3. 3. I.T.C <ul><li>Indian tobacco company. </li></ul><ul><li>Chairman: Y.C. Deveshwar </li></ul><ul><li>Presence in tobacco, hotels, paper boards, foods, fashion retailing and commodity export. </li></ul><ul><li>Annual sale of $ 2 billion. </li></ul>
  4. 4. International Business Division <ul><li>Started in 1990. </li></ul><ul><li>Division of ITC engaged in exports of range of agricultural commodities. </li></ul><ul><li>Contributes over 60% of foreign exchange earning. </li></ul>
  5. 5. E-Choupal
  6. 6. E-Choupal <ul><li>Choupal is a hindi word which means a village meeting place, and “E” here stands for electronic so it is a village meeting place on a electronic platform. </li></ul><ul><li>It is a virtual market place where vendors and customers come together to do transactions. </li></ul>
  7. 7. E-Choupal <ul><li>It is a virtual market place where farmers can transact directly with a processor and can realize better price for their products. </li></ul><ul><li>ITC used a SYMBIOTIC-MICRONODAL model. As both the parties were making profits at different levels. </li></ul>
  8. 8. The E-Choupal Services <ul><li>Relevant & Real-time Information </li></ul><ul><ul><li>Commodity prices, Local Weather, News </li></ul></ul><ul><li>Customized Knowledge </li></ul><ul><ul><li>Farm Management, Risk Management </li></ul></ul><ul><li>Supply Chain for Farm Inputs </li></ul><ul><ul><li>Screened for Quality, Demand Aggregation for Competitive Prices & Efficient Logistics </li></ul></ul><ul><li>Direct Marketing Channel </li></ul><ul><ul><li>Lower Transaction Costs, Better Value through Traceability </li></ul></ul><ul><ul><li>Products access @ door step @ reasonable prices </li></ul></ul>
  9. 10. Conventional Business Model
  10. 11. Disadvantages of the Conventional Business Model <ul><li>Too many intermediaries. </li></ul><ul><li>Information asymmetry caused by intermediaries as they block flow of information to farmers. </li></ul>
  11. 12. E-Choupal Model
  12. 13. Advantages <ul><li>No hierarchy of brokers. </li></ul><ul><li>Internet is used as a low cost medium of communication providing latest information. </li></ul><ul><li>Intermediaries are still used for physical delivery of produce maintaining low cost . </li></ul>
  13. 14. <ul><li>E-choupals are set up by ITC with solar power back up and VSAT connectivity. The equipment cost for the E-choupal is borne by ITC. </li></ul><ul><li>Allow farmers to compare global and local market price (Mandi) </li></ul>Advantages
  14. 15. Advantages <ul><li>Actual procurement is done at factories and warehouse hubs. The initial logging is done through the e-choupal, which provides price information and therefore price certainty. </li></ul><ul><li>To farmers they give access to operational information developed by ITC experts, pertaining to cropping, seeds, fertilizers and so on. </li></ul>
  15. 16. Transaction Costs in Mandi Chain Soybeans Example Farmer Incurs Trolley Freight to Mandi = 120 Labour = 50 Kacchha Adat = 150 Handling Loss = 50 Rs per MT 370 Processor Incurs Commission to Agent = 100 Cost of Gunny Bags (net) = 75 Freight to Factory = 120 Handling at Mandi = 40 335 Total Chain 705
  16. 17. Transaction Costs in Choupal Chain Trolley Freight to ITC Hub = 120 Labour = 50 Kacchha Adat = 150 Handling Loss = 50 Commission to Sanchalak = 100 Cost of Gunny Bags (net) = 75 Freight to Factory = 120 Storage & Handling at Hub = 40 50 Cash Disbursement Costs = 50
  17. 18. The E-Choupal Infrastructure <ul><li>ITC Kiosk with Internet Access </li></ul><ul><ul><li>In the house of one trained farmer, Sanchalak </li></ul></ul><ul><ul><li>Within walking distance of target farmers. </li></ul></ul><ul><li>Warehousing Hub </li></ul><ul><ul><li>Managed by the erstwhile middleman, Samyojak ( coordinator ) </li></ul></ul><ul><ul><li>Within tractorable distance of target farmers. </li></ul></ul>
  18. 19. The Privileged Assets of E-Choupal <ul><li>ITC Infrastructure: </li></ul><ul><ul><li>Computer </li></ul></ul><ul><ul><li>Internet </li></ul></ul><ul><ul><li>VSAT </li></ul></ul><ul><ul><li>Power Backup : Solar Cells and UPS </li></ul></ul><ul><li>Physical Reach: </li></ul><ul><ul><li>Choupals within walking distance </li></ul></ul><ul><ul><li>Multipurpose WH hubs within tractor able distance </li></ul></ul><ul><li>Key Intermediaries: </li></ul><ul><ul><li>Sanchalak (1 per cluster of 5-6 villages) </li></ul></ul><ul><ul><li>Sanyojak (1 per group of 30-40 choupals) </li></ul></ul>
  19. 20. Key Success Factor Self Sufficient Infrastructure Power Connectivity Training
  20. 21. 24 Hubs Upgraded to Malls
  21. 22. FACILITIES AT CHAUPAL SAGAR <ul><li>A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS </li></ul><ul><li>TRAINING FACILITIES FOR FARMING COMMUNITY ON SCIENTIFIC FARMING PRACTICES </li></ul><ul><li>GODOWNS FOR STORAGE OF FARM PRODUCE </li></ul><ul><li>INFORMATION CENTER FOR ONLINE WEATHER INFORMATION </li></ul><ul><li>CONTINOUS SERVICES FROM 6AM- 9PM </li></ul>
  22. 23. CSR Initiatives through e Choupal : “ Sunerha Kal ” <ul><ul><li>Sunerha Kal (CSR) Initiatives focus on </li></ul></ul><ul><ul><ul><li>Improve Farmer Livelihoods, </li></ul></ul></ul><ul><ul><ul><li>Long Term Community Impact programmers, </li></ul></ul></ul><ul><ul><ul><li>Livestock Management programmers, </li></ul></ul></ul><ul><ul><ul><li>Water Management , </li></ul></ul></ul><ul><ul><ul><li>Self Help Groups focusing on women. </li></ul></ul></ul><ul><ul><li>Leveraging capability of </li></ul></ul><ul><ul><ul><li>ITC ‘s management skills, </li></ul></ul></ul><ul><ul><ul><li>“ e-choupal “reach , human and physical Infrastructure, </li></ul></ul></ul><ul><ul><ul><li>The knowledge & experience of NGO’s . </li></ul></ul></ul>
  23. 24. Causeway cum Stop Dam , Nalkui Earthern Dam – Morewani ,MP
  24. 25. Scale Today Kiosks: 6,200 Villages: 40,000 Farmers: 3.5 million
  25. 26. Future Plans For more : visit www.itcportal.com ITC e-Choupal 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
  26. 27. Presented by <ul><ul><li>Kumar Gaurav (21) </li></ul></ul><ul><ul><li>Rahul Laddha (22) </li></ul></ul><ul><ul><li>Amit Lavharale (23) </li></ul></ul><ul><ul><li>Mahesh Rathore (24) </li></ul></ul><ul><ul><li>Amit Mandal (25) </li></ul></ul><ul><ul><li>Mrityunjay Kumar (26) </li></ul></ul><ul><ul><li>Mukesh Pardashani (27) </li></ul></ul><ul><ul><li>Nandan Kumar (28) Naveen yadav (29) </li></ul></ul>
  27. 28. T HA N K S <ul><li>T H A N K S </li></ul>September 8, 2009

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