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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If the farmer finds the quote attractive, he can take the produce to an ITC collection centre and receive payment within two hours. The e-choupals serve as both a social gathering place for exchange of information choupal means gathering place echupal Hindi and an e-commerce hub. This can be exchanged for other ITC products. Website optimised for IE 7. 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. 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. Byeechoupal opening up of the Indian market had brought in international competition. Archives Select Year The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement.
Farmers have only an approximate idea of price trends and have to accept the price offered to them at ecohupal on the day that they bring their grain to the mandi. The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming techniques. It is noteworthy that ITC did not hesitate to install expensive IT infrastructure in places where most people would be wary of visiting overnight.
ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support.
E-choupal brought about a strategic ecboupal to the process: Farmers using e-Choupal on an average receive 2. The agricultural system has also traditionally been unfair to primary producers. The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; caase 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.
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. The model echokpal centered on a network of e-Choupals that serve both as a social gathering place for exchange of information and an e-commerce hub.
By providing information on weather and scientific farming methods, and the supply of high quality farm inputs, ITC enabled the farmers to improve their efficiency and quality of their output. What began as an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and other cropping systems irc rural India has also created a highly profitable distribution and product design channel for the Company.
Goals envisioned Two goals were envisioned for information technology in the e-Choupal process. Jump to Main Navigation.
Case Studies – ITC eChoupal
ITC also uses e-Choupal as a medium to advertise consumer products. For an Indian company to replicate the operating model of such multinational corporations would have required a massive cxse and vertical expansion. Critical factors in the apparent success of the venture are ITC’s extensive knowledge of agriculture, the effort ITC has made to retain many aspects of the existing production system, including retaining the integral importance of local partners, the company’s commitment to transparency, and the respect and fairness with which both farmers and local partners are treated.
In the mandi system, delivery, pricing, and stkdy happen simultaneously, thus binding the farmer to an agent.
The second sudy to facilitate collaboration between the many parties required to fulfill the spectrum of farmer needs. How do we know it is effective? Agriculture is vital to India.
Large international companies had better margin-to-risk ratios because of wider options for risk management and arbitrage. Today, IBD is over Rs crore company that trades in commodities such as feed ingredients, food-grains, coffee, black pepper, edible nuts, marine products, and processed fruits. Press Report Back to Press Reports. Select Year 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 Industry background Spurred by India’s need to generate foreign exchange, ITC’s International Business Division IBD was created in as an agri-trading company aiming to “offer the world the best of India’s produce”.
ITC’s example also shows the key role of information technology – in this case provided and maintained by a corporation, but used by local farmers – in helping to bring about transparency, to increase access to information, and to catalyse rural transformation, while enabling efficiencies and low cost distribution that make the system stuvy and sustainable. The effort placed computers with Internet access in rural farming villages.