A ppt on ITC's E-Chaupal

1. Serving the Bottom Tier Markets ITC eChoupal Experience Sharing

3. Caught in a vicious cycle of underdevelopment Low Risk Appetite Weak Market Orientation Low Investment Low Margins Low Productivity Low Value Addition

4. Scope of Presentation No access to market, no idea of prices of his produce in the market. Sell off Kachcha crop to Adat at a very low price – farmer and the Indian Agriculture globally uncompetitive. #2

6. Inbound logistics include the receiving, warehousing, and inventory control of input materials. Operations are the value-creating activities that transform the inputs into the final product. Outbound logistics are the activities required to get the finished product to the customer, including warehousing, order fulfillment, etc. Marketing & Sales are those activities associated with getting buyers to purchase the product, including channel selection, advertising, pricing, etc. Service activities are those that maintain and enhance the product's value including customer support, repair services, etc.

7. FARMER  MANDI  BUYER

9. #3 Picture of Indian Agriculture before and after ITC e-choupal: Before After Conventional farming methods Scientific farming methods Compromise on yield and quality of the produce Improve yield and quality of the Produce Agree to whichever prices quoted Get better prices on Output Adat used any method to decide on the price of the output. No Incentive to invest on better quality of seeds. Using Appropriate methods to decide on the price of output. Motivating the farmers to invest in better quality seeds. Attractive export markets Weak infrastructure & inconsistent quality

11. The Value Chain - Farm to Factory Gate #9 Agri Input Retailer Farmer Processor Kaccha Adat Pakka Adat Money Lender Trader Broker Dept of Agri Input Cos Seed Fertilizers Chemicals Practices Stockist Govt Univ. Met Dep MSP Insurance Practices Weather

12. ITC e- CHOUPAL SYSTEM FARMERS CHOUPAL SAGAR SAMYOJAK ITC SANCHALAK PC and INTERNET

13. In other words.. #13 Agri Input Retailer Farmer Processor Kaccha Adat Money Lender Trader Broker Dept of Agri Input Cos Seed Fertilizers Chemicals Practices Stockist Govt Univ. Met Dep MSP Insurance Practices Weather Choupal Sanchalak

14. The e-Choupal assists the farmer in the following ways: 1) Provides farmers with real time information and customized knowledge, enabling them to improve productivity quality of produce and price realization. 2) Allows for aggregation of demand for farm inputs from individual farmers thus giving them, access to high quality inputs from reputed manufacturers at competitive prices. 3) Eliminates middle men multiple handling multiple transportation and wastages hereby significantly reducing transaction costs.

16. #17 Key Success Factor Self Sufficient Infrastructure Power Connectivity Training

17. Transaction cost in Mandi Chain (before e-Choupal)

18. Transaction cost in Mandi Chain (after e-Choupal)

22. #30 Our Mission “Improve the Quality of Life in Rural India.”

24. Thank You. #31 e-Choupal ITC Limited