A

Assignment
on
the Topic
Project Shakti and e-Choupal
of
The Course
MBA (2nd Sem)
(2 Year Course)

Department of Management Studies

Deenbandhu Chhotu Ram University of

Science & Technology, Murthal (Sonepat)
Haryana-131039

SUBMITTED TO : SUBMITTED BY:

Dr. Satyanarayan Mahapatra Jatin
20001532020
 PROJECT E-CHOUPAL
This project is an initiative of ITC Limited and is devised to tackle several
challenges posed by the Indian agriculture sector, which can be
characterized as fragmented farms, weak infrastructure, and involvement of
several intermediaries. It involves the installation of a computer with
internet access in rural areas of India to offer farmers up-to-date marketing
and agriculture information.

ITC Limited Kisok with internet access is run by a sanchalak who is a

trained farmer. And generally, a literate from a village who is elected from
the village population. He acts as a mediator and is tasked to retrieves
information on the behalf of the farmers. Here the computer is typically
housed in a sanchalak’s house and is linked to the internet via phone lines
or VSAT connection. Each installation serves an average of 600 farmers in
10 surrounding villages which cover about a 5 km radius. Here sanchalak
bears operation cost but earns service fees for e-transaction done through
e-Choupal. Here warehouse Hub is managed by traditional middlemen who
make up for the lack of infrastructure and fulfill critical jobs, like cash
distribution, quantity aggregation, and transportation.

Benefits of e- Choupal
ITC Limited has provided computers and internet access in rural regions of
the country, due to which farmers were able to directly negotiate with ITC
Limited to sell their products. This online access enables farmers to obtain
information on mandi prices, best farming practices, and to purchase
agriculture inputs like seeds, fertilizers, etc. This helps farmers to improve
the quality of products making them obtain a better price. It helps farmers
to decide when, where, and at what price to sell their products. It also
serves as both a social gathering place and a hub for e-commerce.

With the introduction of this project, farmers have seen a gradual rise
in their income levels because of the rise in yields, improvement in quality,
and decrease in transaction costs.
 PROJECT SHAKTI
This project is initiated by Hindustan Unilever Limited in 2001 with 17
women in two states and its aim is to increase the company's rural
distribution reach as well as to provide rural women with employment
generating opportunities. Its main aim is to train the rural women
entrepreneurs to sell products of Hindustan Unilever Limited to village
markets at the same time supporting their independence.

Women entrepreneur (also called Shakti Amma) is selected from

each village who are trained in basic principle of distribution management
and familiarisation. Shakti Amma is then asked to put Rs.20000 as an
investment which can be used to buy products for selling. These products
are then sold door to door or through petty shops at home. Shakti Amma
takes an average of 10% from sales as her margin.

To support this initiative Shakti Vani program is introduced under

which trained communicators visit various schools and congregations to
deliver the message of good hygiene practices, sanitation, and women
empowerment.

The main advantage of the Shakti Project is having more feet on the
ground. Shakti Ammas can reach various areas which are economically
unavailable for the company to reach on its own. Although the company
has been successful in this initiative it also faces several problems from
time to time for those problems they have to come up with innovative
solutions. One of the major problem faced by the company during this
initiative is that Shakti Ammas are more inclined to stay at home rather
than going door to door to sell products. Moreover, men are not liable to go
to women's houses to purchase products. The company countered this
problem by hosting Shakti Days. Here artificial marketplace was created
with music and promotions and women can sell their products in few hours
without facing any bias.