E-chaupal (Pratik Negi)

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Presentation On E- choupal ( Profitable Rural transformation) BY- Pratik K.S Negi Tanmoy Nandi Tejas Parathe Chintan Sadiwala

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What its all about Agriculture is vital to India produces 23% of GDP, feeds a billion people, and employs 66% of the Workforce Farmers still suffering Unfair agricultural system Mandi system ITC initiative Bring in the E-commerce technology to help the agriculture system

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Farmer Regulated Markets (Fair Market Price) Private Miller Commission Agent (hired by ITC) Village Trader Ghani Producer Coop (Negotiated Price) Cooperative Mill E-Choupal ITC ITC Commission Business model

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The system --1 Less capital 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) Price determination,ordering of agricultural needs ITC crop procurement directly. Higher price to crops

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The system --2 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

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Farmer Benefits Overall rural development total yield profit and opening of alternate option Multi Uses of Internet 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

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USE of technology

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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 ? IS Can the modern methodology and technology be deployed in rural India profitably

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Issues with agriculture in india Agriculture 23% of the GDP, feeds a billion people and employs 66% of the workforce Non-optimal farming practices and capricious weather patterns corrupt and inefficient systems unprofessional business environment made the sector unattractive to modern companies and blocked their influence in rationalizing the market Green revolution and by 1970 we became exporter for the agricultural yield still most Indian farmers are very poor as a result of land redistribution policies Thus a remedy was required for the revamp of the same. ANSWER WAS ---- ITC initiative E--CHOUPAL

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ITC group is one of India’s foremost private sector companies Presences in ITC has a diversified presence tobacco hotels, paperboards, specialty papers, packaging, agri-business, branded apparel, packaged foods and other fast moving consumer goods 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

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Started with the CSR and shareholder value creation with social development The oil seed complex

Vision and Planning : 

Vision and Planning Re- engineer not reconstruct Address the whole, not just one part IT- Driven solution Delivery of real time information Collaboration between parties Risk assessment

Business Model : 

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

E choupal supply chain : 

E choupal supply chain Pricing Inbound logistic Inspection and grading Weighing and payment Hub logistics

Attribute of ITC : 

Attribute of ITC Maintains commercial volumes by sequencing procurement and sales year-round

Scaling the model : 

Scaling the model Crop specific intervention Low-Cost Last Mile. Intelligent First-Mile

Credit and Insurance : 

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

Process regarding issues : 

Process regarding issues

Technology regarding issuesHardware : 

Technology regarding issuesHardware

Software : 

Software

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Boon to villages include: Children are using computers for schoolwork and games Operation and agricultural strategy by (sanchalak’s) World wide exposure to villager for agricultural benefit Pro- youngsters (entertainment factor) Flaws with the system Commission agents – reduction in there share Labour from mandis – lost jobs (but will be reemployed by ITC) Farmers purcahses near mandis reduced Mandi TAX – now paid to mandis nearest to procurement center thus resulting in loss The efficiency pressures imposed by e-Choupal has spurred industry consolidation.

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Challenges Radical shifts in computing access could fundamentally alter community-based models Number and power of the sanchalaks The scope of the e-Choupal operation Speed of expansion create real threats to execution management. Competitive environment ( need and demand and expectation increased) Access to the system Leveraging the poor and females with same rule book

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Future Strategy Thank you Valuation and grading the output Traceability in supply chain & food safety and quality control multiple buyers and sellers execute a range of transactions (not ITC will be sole in charge) rural marketing and distribution strategy with organization of people, processes, and partners vision of eventually sourcing IT-enabled services from rural India Telemedicine, eco-tourism, traditional medicine, and traditional crafts are some of the services that can be sourced from rural India