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E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
E Chaupal (Pratik Negi)
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E Chaupal (Pratik Negi)

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  • 1. Presentation
    On
    E- choupal ( Profitable Rural transformation)
    BY-
    • Pratik K.S Negi
    • 2. Tanmoy Nandi
    • 3. TejasParathe
    • 4. ChintanSadiwala
  • What its all about
    • Agriculture is vital to India
    • 5. produces 23% of GDP, feeds a billion people, and employs 66% of the
    Workforce
    • Farmers still suffering
    • 6. Unfair agricultural system
    • 7. Mandi system
    • 8. ITC initiative
    • 9. Bring in the E-commerce technology to help the agriculture system
  • Business model
    Ghani
    Farmer
    Village Trader
    E-Choupal
    Regulated Markets (Fair Market Price)
    Producer Coop (Negotiated Price)
    Cooperative Mill
    Commission Agent (hired by ITC)
    Private Miller
    ITC Commission
    ITC
  • 10. The system --1
    • Less capital
    • 11. ITC make significant investments to create and maintain its own
    IT network in rural India
    • Computer in farmers place, linked to the Internet via phone lines or,
    increasingly, by a VSAT connection
    • US$3,000 and US$6,000 to set up and about US$100 per year to maintain
    the system
    • Sanchalak ( incurring cost and serve the entire community)
    • 12. Price determination,ordering of agricultural needs
    • 13. ITC crop procurement directly. Higher price to crops
  • The system --2
    • more accurate weighing,
    • 14. faster processing time, and prompt payment,
    • 15. access to a wide range of information,
    • 16. including accurate market price knowledge, and market trends
    • 17. The total benefit to farmers includes
    • 18. Lower prices for inputs and other goods,
    • 19. higher yields
    • 20. sense of empowerment
    • 21. Commission fee reduction in mandis
    • 22. ITC product innovation plus gains in logistics, marketing tactics
  • Farmer Benefits
    • Overall rural development
    • 23. total yield profit and opening of alternate option
    • 24. Multi Uses of Internet
    • 25. The total benefit to farmers includes
    • 26. Lower prices for inputs and other goods,
    • 27. higher yields
    • 28. sense of empowerment
    • 29. Commission fee reduction in mandis
    • 30. ITC product innovation plus gains in logistics, marketing tactics
  • USE of technology
  • 31. Is it a Profitable Rural transformation
    Issues
    1. transport
    2. electric Power
    3.Information and Infrastructure
    4. lacking in modern resources
    Companies restraining to enter the rural market
    ?
    Can the modern methodology and technology
    be deployed in rural India profitably
    IS
  • 32. Issues with agriculture in india
    • Agriculture 23% of the GDP, feeds a billion people and employs 66% of the workforce
    • 33. Non-optimal farming practices and capricious weather patterns
    • 34. corrupt and inefficient systems
    • 35. unprofessional business environment made the sector unattractive to modern companies and blocked their influence in rationalizing the market
    • 36. Green revolution and by 1970 we became exporter for the agricultural yield
    • 37. still most Indian farmers are very poor as a result of land redistribution policies
    • 38. Thus a remedy was required for the revamp of the same.
    ANSWER WAS ---- ITC initiative E--CHOUPAL
  • 39. ITC group is one of India’s foremost private sector companies
    Presences in
    ITC has a diversified presence
    ITC's International Business Division (IBD) agri-trading company aiming to “offer the world the best of India's produce.”
    Because
    agricultural commodity trading business was small compared to international players
  • 48. Started with the CSR and shareholder value creation with social development
    The oil seed complex
  • 49. Vision and Planning
    • Re- engineer not reconstruct
    • 50. Address the whole, not just one part
    • 51. IT- Driven solution
    Delivery of real time information
    Collaboration between parties
    Risk assessment
  • 52. Business Model
    Selecting And Training of Sanchalak
    Motivation qualities for their role
    Help their communities
    Profitable Business for themselves
    Getting Access to a functional computer
    2. Co operating commission agent
  • 53. E choupal supply chain
    Pricing
    Inbound logistic
    Inspection and grading
    Weighing and payment
    Hub logistics
  • 54. Attribute of ITC
    Maintains commercial volumes by sequencing procurement and sales year-round
  • 55. Scaling the model
    Crop specific intervention
    Low-Cost Last Mile.
    Intelligent First-Mile
  • 56. Credit and Insurance
    Capturing Credit History
    Transaction and Administration Costs
    Non-cash loans for farm inputs
    Loans to sanchalaks.
    Sanchalak recommended loans
    Insurance and Risk Management Services
  • 57. Process regarding issues
  • 58. Technology regarding issuesHardware
  • 59. Software
  • 60. Boon to villages include:
    • Children are using computers for schoolwork and games
    • 61. Operation and agricultural strategy by (sanchalak’s)
    • 62. World wide exposure to villager for agricultural benefit
    • 63. Pro- youngsters (entertainment factor)
    Flaws with the system
    • Commission agents – reduction in there share
    • 64. Labour from mandis – lost jobs (but will be reemployed by ITC)
    • 65. Farmers purcahses near mandis reduced
    • 66. Mandi TAX – now paid to mandis nearest to procurement center thus resulting in loss
    • 67. The efficiency pressures imposed by e-Choupalhas spurred industry consolidation.
  • Challenges
    • Radical shifts in computing access could fundamentally alter community-based models
    • 68. Number and power of the sanchalaks
    • 69. The scope of the e-Choupal operation
    • 70. Speed of expansion create real threats to execution management.
    • 71. Competitive environment ( need and demand and expectation increased)
    • 72. Access to the system
    • 73. Leveraging the poor and females with same rule book
  • Future Strategy
    • Valuation and grading the output
    • 74. Traceability in supply chain & food safety and quality control
    • 75. multiple buyers and sellers execute a range of transactions (not ITC will be sole in charge)
    • 76. rural marketing and distribution strategy with organization of people, processes, and partners
    • 77. vision of eventually sourcing IT-enabled services from rural India
    • 78. Telemedicine, eco-tourism, traditional medicine, and traditional crafts are some of the services that can be sourced from rural India
    Thank you

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