The Big Picture: ITC’s Agri Business Division, one of India’s largest exporters of agricultural commodities, has conceived

e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis. The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others.

The Value Chain - Farm to Factory Gate:

‘e-Choupal’ also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability > low investment > low productivity > weak market orientation > low value addition > low margin > low risk taking ability. This made him and Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources. Such a market-led business model can enhance the competitiveness of Indian

higher incomes. disseminate knowledge on scientific farm practices & risk management. As a direct marketing channel. The aggregation of the demand for farm inputs from individual farmers gives them access to high quality inputs from established and reputed manufacturers at fair prices. . ‘e-Choupal’ makes use of the physical transmission capabilities of current intermediaries – aggregation. The Model in Action: Appreciating the imperative of intermediaries in the Indian context. facilitate the sale of farm inputs (now with embedded knowledge) and purchase farm produce from the farmers’ doorsteps (decision making is now information-based). With a judicious blend of click & mortar capabilities. ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value. enlarged capacity for farmer risk management. a growth in rural incomes will also unleash the latent demand for industrial goods so necessary for the continued growth of the Indian economy. logistics. While the farmers benefit through enhanced farm productivity and higher farm gate prices. Further. Real-time information and customised knowledge provided by ‘e-Choupal’ enhance the ability of farmers to take decisions and align their farm output with market demand and secure quality & productivity. ‘e-Choupal’ eliminates wasteful intermediation and multiple handling. larger investments and higher quality and productivity.agriculture and trigger a virtuous cycle of higher productivity. ‘e-Choupal’ leverages Information Technology to virtually cluster all the value chain participants. village internet kiosks managed by farmers – called sanchalaks – themselves. This will create another virtuous cycle propelling the economy into a higher growth trajectory. enable the agricultural community access ready information in their local language on the weather & market prices. in addition to ITC’s own expertise. virtually linked to the ‘mandi’ system for price discovery. Thereby it significantly reduces transaction costs. ‘e-Choupal’ ensures world-class quality in delivering all these goods & services through several product / service specific partnerships with the leaders in the respective fields. delivering the same benefits as vertical integration does in mature agricultural economies like the USA. counter-party risk and bridge financing –while disintermediating them from the chain of information flow and market signals.

has already become the largest initiative among all Internet-based interventions in rural India. Rajasthan. Andhra Pradesh. handling & transportation facilities to improve logistics efficiencies. 'eChoupal' services today reach out to over 4 million farmers growing a range of crops . apart from the challenge of imparting skills to the first time internet users in remote and inaccessible areas of rural India. 24x7 helpdesk etc. Haryana. the roadmap includes plans to integrate bulk storage. coffee. Power back-up through batteries charged by Solar panels. Going forward. Karnataka.The Status of Execution: Launched in June 2000. 'e-Choupal'. installation of VSAT equipment. local caching of static content on website to stream in the dynamic content more efficiently.g. Kerela and Tamil Nadu). The problems encountered while setting up and managing these ‘eChoupals’ are primarily of infrastructural inadequacies. As India’s ‘kissan’ Company. rice. telecom connectivity and bandwidth. Mobile Choupals. upgrading BSNL exchanges with RNS kits.000 villages through 6500 kiosks across ten states (Madhya Pradesh. Uttarakhand. ITC has taken care to involve farmers in the designing and management of the entire ‘e-Choupal’ initiative. Uttar Pradesh. shrimp . The active participation of farmers in this rural initiative has created a sense of ownership . including power over 40. Maharashtra. Several alternative and innovative solutions – some of them expensive – are being deployed to overcome these challenges e. wheat. pulses.

health and education through the same 'e-Choupal' infrastructure. based on parameters of number of lives impacted.Changemakers ‘Health For All’ Award 2006 for the Rural Health Services model for delivery of health services through the e-Choupals. The Ashoka . has a multiplier impact and reaches out to over 1. uniqueness. ensure timely availability of farm inputs including the project among the farmers. The services are customised to meet local conditions. The Stockholm Challenge 2006. This enthusiastic response from farmers has encouraged ITC to plan for the extension of the ‘e-Choupal’ initiative to altogether 15 states across India over the next few years. They see the ‘e-Choupal’ as the new age cooperative for all practical purposes. The first of its kind in India.6 million farmers. On the anvil are plans to channelise other services related to micro-credit. which has covered over 70. Would he get a fair price for his crop? Farmer Ashutosh Dixit was never sure. Not any more. and provide a cluster of farmer schools for capturing indigenous knowledge. e-Choupal was declared as one of . this initiative provides Agri-extension services which are qualitatively superior and involves pro-active handholding of farmers to ensure productivity gains. leverage of resources and whether it was scalable and sustainable. brings the benefits of agricultural best practices to small and marginal farmers.000 hectares. Another path-breaking initiative – the ‘Choupal Pradarshan Khet’. This initiative. Thanks to ITC. ITC's e-Choupal has won numerous awards: United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary initiatives in agri business through the eChoupal. Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations. Backed by intensive research and knowledge. This award is for using information technology for the economic development of rural communities. degree of impact on organization and environment.

the HRH Prince of Wales International Business Leaders Forum (IBLF) and the United Nations Development Programme (UNDP). ITC is the first Indian company and the second in the world to win this prestigious award. 2005 . The Seagate Intelligent Enterprise of the Year 2003 Award . instituted jointly by the International Chamber of Commerce (ICC). 2008 Sep 16. • IT Guru Mohanbir Sawhney's article on e-Choupal • Chairman Y C Deveshwar speaks on the e-Choupal Links to Media Releases :ITC wins Top UNIDO Award for e-Choupal ITC’s e-Choupal expands to Tamil Nadu ITC e-Choupal wins Development Gateway Award 2005 Dec 01. 2008 Jul 31. The 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. PC Quest’s IT Implementation Award in the ‘Best Project’ category. This award recognises companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The Golden Peacock Innovation Award 2004. The NASSCOM award for 'Best IT User in FMCG' in 2003.‘India’s Best Innovations’. The Corporate Social Responsibility Award 2004 from The Energy and Resources Institute(TERI) for its e-Choupal initiative. The ‘Enterprise Business Transformation Award’ for Asia Pacific (Apac). The inaugural 'World Business Award'. for the most innovative usage of Information Technology. The Award is a recognition of ITC's successful integration of its IT usage with its business processes. The Development Gateway Award 2005 (previously known as the Petersberg Prize) for the trailblazing e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector. instituted by Infosys Technologies and Wharton School of the University of Pennsylvania. The Company received this award for its e-Choupal and social and farm forestry initiatives that are impactfully transforming lives and landscapes in rural India.

health & BPO The Economic Times ITC-IBD to set up e-choupals in Telangana Business Standard Fuelling latent rural demand The Economic Times ITC to set up a shopping complex at Ujjain Business-standard. 2006 Mar 30. 2007 Feb 23. e-choupal goes pay-to-use Hindustan Times . 2008 Jun 05. 2009 Monster. 2006 Jul 07. 2010 Aug 12. 2005 May 13. 2006 Aug Financial Express e-Choupal among the '10 biz ideas that changed India' The Week Aug ITC-IBD to extend e-Choupal network to three Telangana districts Business Standard $200. 2006 Jul 24. e-choupal join to launch Bharat Barometer blonnet.ITC wins TERI Award for Corporate Social Responsibility (CSR) ITC wins Golden Peacock Global Award for CSR ITC's 'e-Choupal' wins Wharton-Infosys Business Transformation Award ITC's e-Choupal wins inaugural 'World Business Award' UK grant for promoting rural insurance on eChoupal ITC wins ‘Intelligent Enterprise of the Year Award’ for e-Choupal Jun 01. 2006 Mar 23. 2005 Jul 19. 2004 Jan 21. 2006 Aug 14. 2006 Aug E-Choupal eyes power. 2005 Jun 03. 2007 Nov 22.000 more for e-choupals Business Standard Now. 2006 Sep 17. 2005 e-Choupal lauded by President of India e-Choupal: Networking rural India NDTV. 2004 May 19. 2003 Links to Media Reports :Worth a hill of soyabeans The Economist Jan 07. 2004 Nov 29. 2007 May Internet brings prosperity for farmers CNN-IBN ITC plans 7500 farm demo plots Business Standard COLLABORATION is at the heart of NEW AGE MARKETING Economic Times ITC starts farm extension services The Hindu Business Line Lintas Media arm. 2006 Jul and ITC e-Choupal collaborate to launch Rozgarduniya.

2004 Sep 10.Markets Not Antipathic To Masses The Economic Times ITC connects Rajasthan to e-choupal The Business Standard Distribution’s Disruptive Duo Business Today Magazine Everybody Wins The Economic Times (Brand Equity) The Village People The Economic Times (Brand Equity) The eChoupal experiment has the potential to transform the farm sector The Times of India Indian Soybean Farmers Join the Global Village The New York Times . 2004 Dec 05.ITC holds out mall hope for villagers The Telegraph Jul 04. 2005 Jul 02. 2004 Aug 13. 2004 Rewarding resourcefulness.e-Choupal. 2005 Jun 28. 2004 Jan 14. 2004 Sep 20. 2004 Nov 19. 2004 Jan 14.Unlocking rural markets Businessworld ITC sows seeds of hypermarkets in rural India The Economic Times ITC e-Choupal wears Titan on its wrist The New Indian Express BEST PROJECT . 2005 May 16. lifting lives The Hindu Business Line Ground reality Business Standard ITC e-choupal on awards shortlist Business-standard. 2005 Dec Give them empowerment first The Hindu Business Line Grain revolution The Hindu Business Line APMC Act review may abolish mandi tax Business Standard From toothpaste to tractors. 2005 Jun e-choupal to cast the rural Net wide Business-standard. ITC International Business Division PCQUEST Cigarettes and Virtual Cathedrals The Economist Empower the poor for growth Hindustan Times Farmers e-nabled . 2004 Nov Global award for ITC's e-choupal Business Standard ITC e-Choupals to touch more lives The Asian Age Call of the Countryside India Today ITC Signs MoU with MCX teamindia. 2004 Jan 01. 2004 May 21. this rural mall has it all Outlook CHAUPAL SAGAR . 2005 Apr 11. 2004 Oct 04. 2004 May 27. 2004 Jun 03. 2004 May 26. 2004 Nov 02. 2004 Jun 09. 2005 Jun 23. 2004 Jan 18. 2004 Jan 12.

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