GMBA: Apr 09 Division B

ITC: E Choupal
Shivangi Joshi - GAPR09IT203 Swapna Pai – GAPR09IT207 Sahil Bansal - GAPR09IBWM160 Chandrasekhar R. M. –
GAPR09IT217

Group No – 4

Suchint Sahny–

Understanding Rural India
Demographic s
Population

Status: Agriculture
Self Sufficiency

Status: Farmer
Poverty

Contribution to GDP

Net Exporter

Difficulty to sell

Employment

Inefficient

Exploitation of Farmer

Background and Usefulness
Farmer
Risk taking ability Low Investment Competitiveness Low Productivity Higher Productivity Market Orientation Low Value Addition Low Margin Exploitation Higher Incomes Risk Capacity Increased Investment Increase Demand Increase GDP Indian Economy

EChoupal
Market Led Model

Advantag e India
Rural Prosperity

Mandi Operations
Inbound Logistics

Display and Inspect

Auction

Bagging & Weighing

Payment

Outbound Logistics

Drivers of Supply Chain
• • • • • • Facilities-Computers located Inventory Transportation Information Sourcing Pricing

Business Model
Farme r Farme r Farme r

Price Dictated by

Price Traders by Dictated Sanchalak the Mandis /Middle the Mandi Middlemen men

Exporter Wholesal Sold to exporter such as er/Distrib /wholesaler/distributo ITC higher prices utor r at

Supply Chain

Overview
Farme r Farme r IT Procuremen t Hub Farme r Sanchal ak

Samyojak

Transaction Costs under Mandi and EChoupal Systems
Costs Per metric Ton Commission Handling Costs Labor Costs Bagging and Weighing Costs Farmer (Mandi) 0 50 ITC Mandi Farmer eChoupal 0 0 ITC eChoupal 50 0

100 10

50 70

70 75

0 0

85 0

Transportatio 100 n

250

0

100

Advantages of the model
• Reduction in costs due to intermediaries • Removal of intermediary manipulation of quality • Better risk management by means of stronger information infrastructure • Sanchalak and Samyojak provide correct bottom-up information • Helps establish long term relationship with farmers (direct suppliers)

Key Success Factors: Self Sufficient Infrastructure

Thorough knowledge

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Challenges faced….

ITC’s Mission:

“Improve the Quality of Life in Rural India.”

Thank You

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