ITC ECHOUPAL CASE STUDY PDF

Beginning in , ITC set up a network of ICT kiosks around the country, called e-Choupal (an open meeting place in a village). IT for Change Case Study. ITC has a diversified presence in Cigarettes, Hotels, Paperboards of rural value systems that not a single case of theft, misappropriation. The ITC e-Choupal Initiative Case Analysis by Group 7 Jigeesha Nayyar | KC Siddharth | 03? Kunjal Kaw | Mohit Sadhwani | Naman Misra |

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The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient landholdings.

ITC’s example also shows the key role of information technology – in this case provided and maintained by a corporation, but used by local farmers ecyoupal in helping to bring about transparency, to increase access to information, and to catalyse rural transformation, while enabling efficiencies and low cost distribution that make the system profitable and sustainable.

Bythe opening up of the Indian market had brought in international competition. Farmers using e-Choupal on an average receive 2. It is a manifestation of the integrity of rural value systems that not a single case of theft, misappropriation, or misuse has been reported among the thousands of e-Choupals. The e-choupals serve as both a social gathering place for exchange of information choupal means gathering place in Hindi and an e-commerce hub.

In the mandi system, delivery, pricing, and sales happen simultaneously, thus binding the farmer to an agent. E-Choupal was seen as a medium of delivering critical market information independent of the mandi, thus allowing the farmer an empowered choice of where and when to sell his crop.

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If the farmer finds the quote attractive, he can take echoupaal produce to an ITC collection centre and receive payment within two hours. Goals envisioned Two goals were envisioned for information technology in echoupap e-Choupal process.

Back to Press Reports.

The e-Choupal also provides other information to the farmer, including crop-prices, weather and knowledge on scientific farming techniques. The e-Choupal model has shown that a large corporation can combine a social mission echojpal an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders. ITC gains as intermediaries are removed, and transportation costs decrease.

ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support.

Case Studies

The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement. Press Report Back to Press Reports. The business model The model is centered on a network of echoulal that serve both as a social gathering place for exchange of information and an e-commerce hub.

Farmers have only an approximate idea of price trends and have to accept the price offered to them at auctions on the day that they bring their grain to the mandi. In the Mandi, the following operational process was followed: As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system.

Why is it Innovative.

The ITC e-Choupal Initiative Case Analysis by Group 7 | Raghav Singla –

How do we know it is effective? This can be exchanged for other ITC products.

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One of India’s foremost private sector companies, which has a diversified presence in tobacco, hotels, paperboards, specialty papers, packaging, agri-business, branded apparel, packaged foods and other fast moving consumer goods, initiated e-choupal in By providing information on weather and scientific farming methods, and the supply of high quality farm inputs, ITC enabled the farmers to improve their efficiency and quality of their output.

A local farmer acting as a sanchalak coordinator runs the village e-Choupal, and the computer usually is located in the sanchalak’s home.

It was also designed to play the role of a social gathering place, for the exchange of information as well as a place for e-commerce transactions.

Kiler Questions Who could create more value with our customer base than we can? Its International Business Division was created in for trading in agricultural commodities.

The e-Choupals are operated by a sanchalak operatorwho also doubles up as an ITC salesman.

Today, IBD is over Rs crore company that trades in commodities such as feed ingredients, food-grains, coffee, black pepper, edible nuts, marine products, and processed fruits. E-choupal has also established a low-cost fulfillment system focused on the needs of rural India that has helped in mitigating rural isolation, create more transparency for farmers, and echouppal their productivity and incomes.

The first was the deelivery of real-time information independent of the transaction. Agriculture is vital to India. ITC also uses e-Choupal as a medium to advertise consumer products.