E – Choupal (June 2000) An initiative of ITC Limited to link directly with rural farmers via the Internet for procurement of agricultural & aquaculture products The programme involves the installation of computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information.
To Develop a Channel Directly Linking farmers to Organizations: Initial Objective: ⋗Access to target soya producing markets & achieve organized buying over the current Indian soya procurements systems in long term Mid Objective: ⋗Access to key agricultural/products producing markets & achieve organized buying & selling in key Indian rural markets Current Objective: ⋗To expand the network further & offer a complete package to server rural customer daily needs & develop the platform for the future (to get services like web tourism)
The eChoupal infrastructure• ITC Kiosk with Internet Access and Local Language Content (Weather, Prices, Farming Practices etc) – In the house of one trained farmer, Sanchalak – Within walking distance of target farmers• Warehousing Hub with Internet Access – Managed by the erstwhile middleman, Samyojak – Within tractorable distance of target farmers
The ITC eChoupal Scale Today – 6500 Choupals are serving over 4million farmers & villagers across 40000 villages (adding 6 a day) • Higher capture of consumer spend • Building capacities of rural communities Vision – Reach 100,000+villages by 2012 • Dealing with wider variety of crops • Creating infrastructure for Education and Healthcare services • Enhancing Quality of Life in rural India
E-choupal: Strategic Thrust Procurement: cost & quality optimization o Strategic sourcing support to the Foods business (support creation of verticals in wheat, soya, corn, potato etc.) o Cost-effective sourcing for exports/domestic external business Rural Distribution o ‘Last mile connectivity’: 100 partnering companies o Diverse range of goods/services: FMCG, consumer durables, agri-inputs, paid extension services etc. Financial Services o Insurance (focus: weather) o Credit (focus: Kisan Credit Card scheme) Rural retail o 24 Choupal Saagars operational 6
E- Choupal Saagar – Benefits to a Farmer• Option of selling to Choupal Saagar or Mandies• In some crops, farmers earns 25% higher prices than selling to Mandies• Profit realization increased upto 60%• Availability of Loan facilities• Availability of brands/quality products at best prices• Exposure to latest information• Difference in net earning will be high if saving on commission to middle man & cost of transport are considered
Main Competitiors Godrej Aadhar – Godrej Kisan Seva Kendra - IOC Tata Kisan Sansar - TATA Chemicals Mahindra Subh Labh – M&M HUL iShakti – HUL Parry’s Conner - Murugappa Group
Conclusion• An innovative strategy which is elaborative & extensive in rural markets so far.• Rural wealth creation in agriculture through securing empowerment, collaboration & competition• A transformational initiative for sustainable development of society• Commitment to transparency & the respect & fairness with which both farmers & local partners are treated.