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BSAP Conference, HBS Dec 1-3, 2005

ITC eChoupal

ITC’s e-Choupal A Platform Strategy for Rural Transformation
Ravi Anupindi Stephen M. Ross School of Business University of Michigan Ann Arbor, MI 48105 USA S. Sivakumar CEO - International Business Division ITC Limited Secunderabad, AP INDIA

December 1, 2005 BSAP Conference, HBS

Problems of Rural Indian Farmer
Sell: sunk costs, inconvenience, other losses Mandi Market
Price Discovery @ Sell Transaction




Financing Information (Aggr)

Money Lender Extension

Knowledge (Use)


TOWN Buy:high prices, spurious goods, information not timely

©Anupindi and Sivakumar 1 .

Transaction-based income stream for the Sanchalak & Samyojak .g. Price Discovery) Knowledge (Customized) Transaction Choupal Sagar PRODUCT & SERVICE PROVIDERS Sanchalak Samyojak VILLAGE TOWN PAN-INDIAN 1. HBS Dec 1-3. Freedom of Choice in Transactions 3. Information and Knowledge are free 2. 2005 ITC eChoupal Root Causes and Implications ROOT CAUSES IMPLICATION  Fragmentation  Weak Bargaining Power  Dispersion  No access to real-time information  Heterogeneity  Need for customized knowledge CHALLENGE  Weak Infrastructure  Dependence on middlemen (exploitative cycle of dependency) e-Choupal Platform Information (e.BSAP Conference.

©Anupindi and Sivakumar 2 .

high quality.5 million ©Anupindi and Sivakumar Year 2010 : Kiosks : 15000+ Villages : 100.BSAP Conference.g. 2005 ITC eChoupal e-Choupal: Rural Indian Farmer Sell: Price discovery @ village.. efficiency Knowledge (Customized) Information (e. competitive prices. HBS Dec 1-3. superior service e-Choupal: Current Scale and Vision Year 2005: Kiosks: 5000 Villages: 30. choice.000 Farmers: 10 million . Price Discovery) Mandi PRODUCT & SERVICE PROVIDERS Farmer Choupal Sagar Transactions Sanchalak Samyojak PAN-INDIAN VILLAGE TOWN Buy: Information + Customized Knowledge @ village.000 Farmers: 3.

Wheat Soybean Soybean & Wheat Coffee Aqua 3 .

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