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Presentation <br />On <br />E- choupal ( Profitable Rural transformation)<br />BY-<br /><ul><li>Pratik K.S Negi
Tanmoy Nandi
TejasParathe
ChintanSadiwala</li></li></ul><li>What its all about<br /><ul><li>  Agriculture is vital to India
  produces 23% of GDP, feeds a billion people, and employs 66% of the </li></ul>   Workforce<br /><ul><li>  Farmers still ...
  Unfair agricultural system
Mandi system
  ITC initiative
  Bring in the E-commerce technology to help the agriculture system</li></li></ul><li>Business model<br />Ghani<br />Farme...
The system --1<br /><ul><li>  Less capital
  ITC make significant investments to create and maintain its own </li></ul>    IT network in rural India<br /><ul><li>  C...
  Price determination,ordering of agricultural needs
  ITC crop procurement directly. Higher price to crops</li></li></ul><li>The system --2<br /><ul><li>more accurate weighing,
 faster processing time, and prompt payment,
access to a wide range of information,
 including accurate market price knowledge, and market trends
The total benefit to farmers includes
             Lower prices for inputs and other goods,
             higher yields
             sense of empowerment
Commission fee reduction in mandis
ITC  product innovation plus gains in logistics, marketing tactics</li></li></ul><li>Farmer Benefits<br /><ul><li>  Overal...
  total yield profit and opening of alternate option
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E Chaupal (Pratik Negi)

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E Chaupal (Pratik Negi)

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

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