Beginning in , ITC set up a network of ICT kiosks around the country, called e-Choupal (an open meeting place in a village). IT for Change Case Study. ITC has a diversified presence in Cigarettes, Hotels, Paperboards of rural value systems that not a single case of theft, misappropriation. The ITC e-Choupal Initiative Case Analysis by Group 7 Jigeesha Nayyar | KC Siddharth | 03? Kunjal Kaw | Mohit Sadhwani | Naman Misra |
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The e-Choupal model has shown that a large echlupal can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.
Large international companies had better margin-to-risk ratios because of wider options for risk management and arbitrage.
A farmer can visit the kiosk and show a sample of his produce to the sanchalak, who gives him a quote. The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient landholdings. Farmers have only an approximate idea of price trends and have to accept the price offered to them at auctions on the day that they bring their grain to the mandi.
Because of the Green Revolution, India’s agricultural productivity has improved to the point that it is both self-sufficient and a net exporter of a variety of food grains. They also handle the physical transportation of the goods and earn a commission on it.
The sustainability of the engagement comes from the idea that neither the corporate nor social agendas will be subordinated in favor of the other.
How do we know when we achieve our echoupla The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming techniques. Industry background Spurred by India’s need to generate foreign exchange, ITC’s International Business Division IBD was created echhoupal as an agri-trading company aiming to “offer the world the best of India’s produce”.
In the mandi system, delivery, pricing, and sales happen simultaneously, thus binding the farmer to an agent. As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system.
e-Choupal: Networking rural India
ITC also uses e-Choupal as a medium to advertise echoipal products. It is a manifestation of the integrity of rural value systems that not a single case of theft, misappropriation, or misuse has been reported among the thousands of e-Choupals. The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement. The second was ihc facilitate collaboration between the many parties required to fulfill the spectrum of farmer needs.
The business model The model is centered on a network of e-Choupals that serve both as a social gathering place for exchange of information and an e-commerce hub.
Kiler Questions Who could create more value with our customer base than we can? Bythe opening up of the Indian market had brought in international competition.
Farmers using e-Choupal on an average receive 2. What started initially as a way to modify the procurement process for crops like soy, and wheat, has now turned into a lucrative distribution and product development channel for ITC.
This also provided indirect benefits to the company reducing the risk in several areas of the supply chain eChoupal also provided ITC with an effective marketing vehicle. Goals envisioned Two goals were envisioned for information technology in the e-Choupal process. Why is it Innovative. One of India’s foremost private sector companies, which has a diversified presence in tobacco, hotels, paperboards, specialty papers, packaging, agri-business, branded apparel, packaged foods and other fast moving consumer goods, initiated e-choupal in The company expects each e-Choupal to serve about 10 villages within a five-kilometer radius.
Jump to Main Navigation. ITC has plans to saturate the sector in which it works with e-Choupals, such that a farmer has to travel no more than five kilometers to reach one. Website optimised for IE 7. ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support. How do we know it is effective? Archives Select Year E-choupal brought about a strategic chage to the process: It is noteworthy that ITC did not hesitate to install expensive IT infrastructure in places where most people would be wary of visiting overnight.
What began as an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and other cropping systems in rural India has also created a highly profitable distribution and product design channel for the Company.
Sustainability through mutual respect The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.