Agri Business Management

1. ITC e-Choupal
By-Group-04

2. INDIAN TOBACCO COMPANY(ITC)
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 Established in 1910 as the imperial tobacco company of India limited
 The company was renamed as the India tobacco company limited in 1970
and later to I.T.C. Limited in 1974
 The company now stands renamed to ITC limited
 As of 2019–20, ITC had an annual turnover of US$10.74 billion and
a market capitalization of US$35 billion. It employs 36,500 people at more
than 60 locations across India

3. e-Choupal
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4. e-Choupal
▰ e-Choupal was started in the year 2000
▰ e-Choupal is an India-based business initiative by ITC limited that
provides internet access to rural farmers.
▰ The purpose is to inform and empower them and, as a result, to improve
the quality of agricultural goods and the quality of life for farmers.
▰ There are 6,100 e-Choupals in operation in 35,000 villages in 10 states
affecting around 4 million farmers
▰ In 2020, ITC rolled out e-Choupal 4.0, that provides farmers with
information on weather and markets on a real-time basis. It also advises
farmers on crop monitoring and electronic marketing place
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5. Why did ITC launch e - choupal
▰ Recognising the various challenges faced by farmers like
fragmented farms, weak infrastructure and involvement of
numerous intermediaries, ITC designed e-Choupal as a
more efficient supply chain aimed at delivering value to its
customers around the world on a sustainable basis.
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7. VISION
▰ Re-engineer, Not Reconstruct:First, it avoids “reinventing
the wheel” in areas where ITC would not be able to add
value through its presence. Second, it recruits and engages
members of the rural landscape thereby making their
expertise available to ITC while preventing their expertise
from being shared with ITC’s competition
▰ Address the Whole, Not Just One Part:It is a centralized
provider of cash, seed, fertilizer, pesticides, and also the
only marketing channel.
▰ An IT-Driven Solution:IT-based solution was recognized as
fundamental to optimizing effectiveness, scalability, and
cost 7

8. ▰ Modularity of Investments, in Size and Scope:in Size and
Scope ITC managed its investments modularly along the
scope and scale axes in what it terms “rollout-fixitscale up”
and “pilot-critical mass-saturation
▰ Risk Assessment and Mitigation:The diversity of activities
required of every operative and the speed of expansion
create real threats to efficient management.
▰ Managing Bureaucracy:ITC convinced the government that
e-Choupals would operate according to the spirit of the Act
and thus e-Choupal procurement was in line with its goals.
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9. “What does e-
Choupal do?
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10. What does e-Choupal do
1. Provides direct market channel to farmers
2. Progressive knowledge for seeking citizen
3. E-choupal sanchalak
4. E-choupal smart card
5. Real time up to date information-
a. Weather condition
b. Best agriculture practices
c. Best price

11. Principle of e-choupal
• Elimination of non-value added activities.
• Differentiated product through identity preserved supply
chains.
• Value added products traceable to farm, practices.
• e-market place for spot transactions and support services to
future exchange.
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12. Success factor for e-choupal
▰ Comprehensive knowledge of rural market
▰ Designing a win win transaction model
▰ Leveraging the logistics channels
▰ Selection of sanchalak
▰ Evolving an appropriate user interface
▰ Bottom up model for entrepreneurship
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13. Social impact of e-choupal
Agricultural Best Practices
Customized Quality Solutions
Intelligent Product Deployment
Villagers access global resources to learn about agriculture in
other parts of the world
Sanchalaks use the Internet to chat extensively among
themselves about the status of operations and agriculture in
their villages.

14. Technology Specification
▰ Hardware:-
 Power solar battery charger, UPS,(isolation transformer,
spike suppressor)
 Connectivity dail-up modem VSAT: solar charger, VSAT
modem, antennae
 Computer hardware pc with intel processor, printer
▰ Software:-
 Operating system windows98
 Word processor ankur
 Other sunera kal – short movie on e-choupal video clips-
soil testing

15.  Commission agents
 Mandi laborers
 Bazaars near the mandi
 Some mandi operations
 Competing processors
Negative Effect of e-Choupal
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16. Limitations of e-Choupal
▰ Lack of awareness about various services of E-Choupal
▰ Accessibility is not easy
▰ Power fluctuation, Economic constraint, Poor Network
Connectivity
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17. Result
▰ Higher margin to farmers
▰ More number of farmers started coming to the Centre
▰ By 2020 e-choupal covered 31000 villages and 40lakh farmers
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THANKS!