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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Initially, the agricultural commodity trading business was small compared to international players.
The e-choupals serve as both a social gathering place for exchange of information choupal means gathering place in Hindi and an e-commerce hub. They also handle the physical transportation of the goods and earn a commission on sgudy.
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. The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement.
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.
Goals envisioned Two goals were envisioned for information technology in the e-Choupal process. Today its network reaches more than a million farmers.
It is noteworthy that ITC did not hesitate to install expensive IT infrastructure in places where most people would be wary of visiting overnight. Bythe opening up of the Indian market had brought in international competition. A farmer can casse the kiosk and show a sample of his produce to the sanchalak, who gives him a quote.
ITC also uses e-Choupal as stufy medium to advertise consumer products. As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system. Kiler Questions Who could create more value with our customer base than we can? Why is it Innovative. Back to Press Reports.
How do we know it is effective?
Jump to Sub Navigation. Jump to Main Navigation. The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient landholdings. Jump to Top Navigation. The second was to facilitate collaboration between the many parties required to fulfill the spectrum of farmer needs. 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.
Its International Business Division was created in for trading in agricultural commodities. 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. The Chairman of ITC challenged IBD sthdy use information technology to change the rules of the game and create a competitive business that did not need a large asset base.
ITC gains as intermediaries are removed, and transportation costs echoupsl. 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. Select Year Large international companies had better margin-to-risk ratios because of wider options for risk management and arbitrage.
Yet most Indian farmers have remained quite poor.
Case Studies – ITC eChoupal
ITC has plans to saturate the sector in which it works with e-Choupals, such that a farmer has to travel czse more than five kilometers to reach one.
The business model The model is centered on a network of itcc that serve both as a social gathering place for exchange of information and an e-commerce hub. ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support. As a result, traders are well positioned to exploit both farmers and buyers through practices that sustain system-wide inefficiencies.
The sustainability of the engagement comes from the idea that neither the corporate nor social agendas will be subordinated in favor of the other. 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 cas shareholders.
E-choupal has also established a low-cost fulfillment system focused on the needs of rural India that has helped in mitigating rural isolation, create more transparency for farmers, and improve their productivity and incomes. In the mandi system, delivery, pricing, and sales happen simultaneously, thus binding the farmer to an agent.
It produces 23 per cent of the Sstudy, feeds a billion people, and stury 66 per cent of the workforce.