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-Chinmay Bande (A-65),MKT
Ð,
is large Indian conglomerate with diversified business in packaged
consumer goods, hotels, paperboard and packaging, information
technology and agri-business; with annual sales of US $ 5 billion and a
market capitalization of US $ 18 billion.

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Turnover per market
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ÐAbout 68% of these markets remain untapped mainly due to inaccessibility

ÐIt is uneconomical to access a large no. of small villages with very low
population density spread over large geographical area
ÐLimited storage facilities
ÐLarge no. of intermediaries and their low capacity to invest in business

These things make the task of reaching rural consumers very complex. And
existing system is as-
1. Haats (periodic village markets): no. in India about 42,000-one haat covers
20-50 villeges-300 outlets-visited by more than 4,500 people
2. Mandis (agri-market): set up by state govt.-6800 in India-each catering 0.14
million people
3. Rural fairs (melas)
 
  

ÐITC͛s e-Choupal is an example of how a commercial venture can
provide a channel for knowledge and opportunity, bringing global
resources and practices to Indian villages as well as higher incomes
for farmers, and helping create the conditions for many other
enterprises to cater to the rural market.

Ð1999-volatile world of agri-commodity trading

ÐProject Symphony

Ð3rd Oct.1999-first e-Choupal

ÐElements of e-Choupal:-
-Sanchalak, Samayojak
-PC, printer & UPS
-VSAT connection
-Solar panel
-Mobile e-Choupals
-Training
 
 
 
ÐRelevant & Real-time Information
ʹ Commodity prices, Local Weather, News
ͻ Customised Knowledge
ʹ Farm Management, Risk Management
ͻ Supply Chain for Farm Inputs
ʹ Screened for Quality, Demand Aggregation for Competitive Prices & Efficient
Logistics
ͻ Direct Marketing Channel for Farm Produce
ʹ Lower Transaction Costs, Better Value through Traceability
ÐMarketing Services
ʹ Market Research, Brand Building, Product Demonstration
ͻ Governance services
ʹ Bhoomi
ͻ Health with Private Health Service Providers
ʹ Apollo
ͻ Education
ʹ ILFS
ͻChoupal Sagar services
ʹSoil Testing, Medical facilities, Bank & Insurance, Entertainment, Cafeteria, Petrol/
Diesel Station
 
 

,

ͻ Better supply chain for ITC͛s Food & Agri-Businesses
ʹ Costs, Quality, Traceability

ͻ Access to the Rural Markets

ʹ Through a Virtuous Cycle created by ͞Larger Incomes͟, and
founded on ͞Trust͟ that is built

ͻ New ITES Business Opportunities

ʹ Health, Education, Entertainment, e-Governance

ͻ Shareholder Value through Serving Society

ʹ Also, the infrastructure serves as a reliable delivery
mechanism for resource development initiatives (e.g. water
management)

ͻRural market research

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ÐITC-IBD͛s turnover has grown from Rs.300-3000 crore

ÐThere are currently 6500 e-Choupals covering 38,000 villages and

catering to more than 4 million farmers

ÐIt has also set up rural malls Choupal Sagars at warehousing hubs
where farmers have been brining their produce to deliver after
selling to ITC. There are 24 Choupal Sagars already up and running

ÐThis network is now being used to sell non-ITC products to the

villages

ÐITC procures 80% of its procurement via Web Channels

ÐIBD was just another non-core activity within ITC group and it was
on the verge of being divested. Today , however, IBD is one of the
core business of ITC
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1) ITC website
2) Book ͚Rural Marketing͛ by Pradeep Kasyap & Mr. Raut
3) Book ͚Breakthrough Innovation͛ by Mr.Poras Munshi