I T C

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I T C

  1. 1. I.T.C E-CHAUPAL
  2. 2. I.T.C <ul><li>Indian tobacco company </li></ul><ul><li>Presence in tobacco, hotels , paper boards ,foods , fashion retailing and commodity export </li></ul><ul><li>Annual sale of 2 billon </li></ul>
  3. 3. International business division <ul><li>Started in 1990 </li></ul><ul><li>Div of ITC engaged in exports of range of agricultural commodities </li></ul><ul><li>Contributes over 60% of foreign exchange earning </li></ul>
  4. 4. E-chaupal
  5. 5. E-CHAUPAL <ul><li>Chaupal 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>
  6. 6. E-CHAUPAL <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>
  7. 7. Types of E-Chaupals <ul><li>Shrimp </li></ul><ul><li>Coffee </li></ul><ul><li>Wheat </li></ul><ul><li>Soyabean </li></ul>Large farmers Large produce Small farmers
  8. 8. Focused approach <ul><li>Feed ingredients </li></ul><ul><li>(soybeans, rapeseed meal) </li></ul><ul><li>Food grains </li></ul><ul><li>(rice, wheat, pulses) </li></ul><ul><li>Edible nuts </li></ul><ul><li>(sesame seeds, groundnuts) </li></ul><ul><li>Marine products </li></ul><ul><li>(shrimps ,prawns) </li></ul>
  9. 9. Conventional business model
  10. 10. 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. 11. E-Chaupal modal
  12. 12. 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. 13. <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. 14. 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. Future plans 10 million 4 million Farmers e-empowered 20,000 6,500 No . of e-Choupals 100,000 40,000 Villages covered 15 10 States covered Next 5 Years Now e-Choupal
  16. 17. Thank you

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