E-CHOUPAL ITC

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Presentation Transcript

CASE ANALYSIS ON ITC E-CHOUPAL : 

CASE ANALYSIS ON ITC E-CHOUPAL PRESENTED BY : GROUP 6SECTION “A”

Slide 3: 

1.Discuss the business benefit of e-choupal initiative

Benefits of e-choupal : 

Benefits of e-choupal Helps in enhancing the competitiveness of Indian agriculture Farmers have more knowledge of prices and could have a much better control over the timing of making its trade. Reduces monopoly power of CAs(commission agents), which cut the costs for both farmers and soybean processor.

Slide 5: 

Empowering rural India with the relevant information. Farmers can even use it for buying relevant supplies which they need. Improvement in the productivity Social stability Payment on delivery Lower cost of input for farmers as well as ITC

Slide 7: 

2.What are the changes brought in the supply chain through e-choupal

Traditional Supply Chain : 

Traditional Supply Chain Farmers had to travel 30-50kms to unload their harvest. Transaction was between farmer and CA. Price discovery mechanism was auctioning Use of manually operated balance scale By every transaction farmers use to lose 0.5% of his original lot. Old supply chain management Village A Mandi B Factory C (Old) FARMERS CA

Reorganized supply chain : 

Reorganized supply chain Reorganized supply chain management Village A ITC Hub Factory C (new) Transparency e-choupal system turned the Sanchalak into an entrepreneur The web technology brought price discovery to the village level The farmers could know what prices he would get at an ITC hub Reports on nearby Mandis By following the real time prices on the websites the farmers could decide when to sell

Slide 11: 

Computerized weighbridge The farmers received cash on delivery Reimbursement of transportation cost Commission agents became Samyojak setting of the e-choupal facilitating ITC’s purchasing transaction helping with ITC’s selling transactions acted as a liaison between ITC and villagers managed warehousing HUB

Slide 12: 

One-Stop Shop Farmers could buy herbicides Sowing seeds Gas lanterns Fertilizers Soyabean oils Three systems was enabled for this: i)At the village level Sanchalak aggregated demand for products through order placed by his fellow farmers and mailed the order to the ITC. ii) Based on the estimated demand and stocking them at home. iii)Shopping for the products at the ITC processing facility.

3.Identify the key components of ITC E- Choupal implementation that led to its success : 

3.Identify the key components of ITC E- Choupal implementation that led to its success

Answer : 

Answer Business model that incorporated “e” into the age old tradition on village E-choupals. Reorganization of the supply chain. Village A Mandi B Factory C (Old) Village A hub Factory C ( New) It was developed with full involvement of farmers.

Slide 15: 

In-depth knowledge of rural markets User friendly websites - Site provided information on weather, best practices, crop information, market information, FAQ’s, news, feedback and information about ITC. Beneficial for processor as well as farmer Improved logistic facility Selection of Sanchalak and Samyojaks Evolving an appropriate user interface Vast scope for rural development

Slide 16: 

E-choupal was “one stop shop”. ITC hubs were better equipped than mandis. Rest rooms Electronic weighing machines Cash on delivery Transportation cost was reimbursed. Tented seating area. Soil testing lab on premises.

4.Identify key strategic intentions of the initiative : 

4.Identify key strategic intentions of the initiative

Slide 18: 

Creating market through improved farm income, whilst placing ITC in a unique position to reap benefits through its closeness to the potential consumer. Bring up IBD in ITC’S realm as well as in global commodities exporting market - Reach the goal of Rs. 2000 crores in revenue by the year 2005 Achieve full business potential. -Increase the efficiency of Agricultural supply chain -End unfair practices. -Make the cycle productive for both the farmers and soybean processors. -Price discovery to the village level.

Slide 19: 

Networking the villages via the Internet Disintermediation To increase the export shares To create awareness about the unpredictable weather in India –Weather page To reach farmers quicker for matter related to best practices – Best practice page Wider range of information- Market information To solve any kind of query by the farmers- Q+A forum Avoiding farmers exploitation by the Commission agents

Thank You : 

Thank You Group members are -Anumeha -Gaurav Ravi -Puja -Rashmi -Trupti