I T C E -CH O U PA L

PRESENTED BY
AMRIN BEG
BAISHAKHI LARMA
AN OVERVIEW : ITC

Imperial Tobacco Company of India Limited (1910–

1970)
India Tobacco Company Limited (1970–1974)
I.T.C. Limited (1974–2001)
ITC limited (2001–present)
Public company ( Industry: conglomerate)
Consumer goods, Cigarette, Apparel, Education, IT etc
ITC E - CHOUPAL
E-Choupal means “village meeting place”
Launched in June 2000
E -Choupal is a virtual market place where farmers can
transact directly with a processor and can determine the best
price for their product.
There are 6,100 e-Choupals in operation in 35,000 villages in
10 states
E- Choupal service has reach out to over 4million farmers
growing a range of corps such as soyabean, rice, pulses, coffee
E-CHOUPAL BUSINESS MODEL
The e-Choupal idea cuts through the basic and historic
problems crippling Indian agriculture.
E-Choupal makes use of the physical transmission strengths of
the current intermediaries .
Under e-Choupal, ITC has set up Internet kiosks in villages
managed by the famers known as ‘sanchalaks ’.
The farmers can order quality agricultural inputs online.
E-Choupal links the Indian farmer to the consumers in local and
global markets
CONT..
ITC is now restructuring the e-choupal model, version 3.0
Emerging areas like telemedicine, e-Governance,
education and entertainment will soon ride on the Internet,
web-casting and video conferencing infrastructure of e-
Choupal
E-choupal provides customized knowledge and real time
information.
PROJECT GOAL

The first of the e-choupal is delivery of real-time

information independent of the transaction
Providing an empowered choice to the farmer where
and when to sell their crop
The second goal is to facilitate collaboration
between the many parties required to fulfill the
spectrum of farmer needs
SANCHALAK
Sanchalak is a identified and trained farmer within the e-
choupal
Registered sanchalak has fully access to the e-choupal
portal
ITC provide training to the sanchalaks on basis how to run
computer, functions of the e-choupal website, basic
business skills and as well as quality inspection if crops
Sanchalaks have basic education about how to read and
write
SAMYOJAK

A local commission agent known as samyojak

Samyojak provides logistic support in to the system
Fulfil critical jobs like transportation and also gives
some inputs to village and Sanchalak selection when
a new e-choupal set up.
FUTURE PLANS WITH PARTNER BANKS

Insurance and Risk management service

Non-cash loans for firms inputs
Create entrepreneurs by giving loans to Sanchalaks
Based on sanchalaks recommendation provide direct loan
to the farmers
FUTURISTICS SERVICES OF E-CHOUPAL
Product and service distribution to the rural market:
Choupal sagar
Sanchalaks
Micro Marketing:
Product/service demons
Marketing and Brand building activities
Pilots:
Bhoomi
E-health service along with private health service providers
E-education
Rural BPO
ENCOURAGE LOCAL PARTICIPATION

Growth in rural income

Market led business
Win-Win situation
Cost reduction
WIN-WIN SITUATION
Farmers:
Helps to enhance farming productivity trough bundling knowledge
with deliveries of farm inputs

provide better prices for their produced and developed productivity of

firms
Farmers can save almost 2.5% over the mandi system.
The company:
 ITC benefits from the lower net cost of procurement
having eliminated costs in the supply chain that do
not add value.
 ensured more profits and larger share of commodity
exports
 Lower transaction cost pays only 0.5% commission
to the Sanchalak
 Ensuring a satisfied customed base by providing
quality agriculture inputs and purchasing quality
crops
COST OF E-CHOUPAL

Each e- Choupal costs between US$3,000 and

US$6,000 to set up and about US$100 per year to
maintain.
E-CHOUPAL SYSTEM SUPPORT
ITC has about 15 engineers who provides field
infrastructure support to e-Choupals
Each e-Choupals is visited about 2times in a month
for infrastructure support
The estimated support cost is rs300 for per visit
The average calls is about one or two in a day
PROBLEMS OF E-CHOUPAL

Power supply
Infrastructures
Bandwidth and Telecom connectivity
Less skills to run computer and internet usage for
first time
CONCLUSION
ITC has plan for the extension of the ‘e-Choupal' initiative
to altogether 15 states across India over the next few years
Plans to channelize other services like micro-credit, health
and education through the same 'e-Choupal' infrastructure.
Another initiative is 'Choupal Pradarshan Khet', brings
the benefits of agricultural best practices to small and
marginal farmers.