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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Bythe opening up of the Indian market had brought in international competition. Critical factors in the apparent success of the venture are ITC’s extensive knowledge of agriculture, the effort ITC has made to retain many aspects of the existing production system, including retaining the integral importance of local partners, the company’s commitment to transparency, and the respect and fairness with which both farmers and local partners echooupal treated. Yet most Indian farmers have remained quite poor.
The first was the deelivery of real-time information independent of the transaction. Archives Select Year ITC also uses e-Choupal as a medium to advertise consumer products. It was also designed to play the role of a social gathering place, for the exchange of information as caes as a place for e-commerce transactions.
The intermediaries were not removed from the value-chain, instead they were made as samyojaks coordinators who assist ITC in setting up new e-choupals. The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement.
Case Studies – ITC eChoupal
As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system. 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.
Industry background Spurred by India’s need to generate foreign exchange, ITC’s International Business Division IBD was created in as an jtc company aiming to “offer the world the best of India’s produce”. ITC also incorporated a local commission agent, known as the samyojak collaboratorinto the system as the provider of logistical support.
Goals envisioned Two goals were envisioned for information technology in the e-Choupal process. The sustainability of the engagement comes from the idea that neither the corporate nor social agendas will be subordinated in favor of the other.
In the mandi system, delivery, pricing, and sales happen simultaneously, thus binding the farmer to an agent. Initially, the agricultural commodity trading business was small compared to international players.
The model is centered on a network of e-Choupals that serve both as a social gathering place for exchange of information and an e-commerce hub. Jump to Top Navigation. By providing information on weather and scientific farming methods, and the supply of high quality farm caase, ITC enabled the farmers to improve their efficiency and quality of their output.
Press Report Back to Press Reports. Large international companies had better margin-to-risk ratios because of wider itx for risk management and arbitrage. The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient landholdings. The e-Choupal model has shown that a large corporation can combine a social mission and 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.
Today its network reaches more than a million farmers. It is noteworthy that ITC did not hesitate to install expensive IT stidy in places otc most people would be wary of visiting overnight. Jump to Sub Navigation.
e-Choupal: Networking rural India
Website optimised for IE 7. 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 – 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.
Web-enabled real time data on crop prices provide the farmer with the market prices for their produce. How do we know it is effective? This can be exchanged for other ITC products. The agricultural system has also traditionally been unfair to primary producers. The business model The model is centered on a network of e-Choupals that serve both as a social ktc place for exchange of information and an e-commerce hub.
What began as an effort to re-engineer the procurement process for soy, tobacco, wheat, shrimp, and other cropping systems in rural India has also created ecohupal highly profitable cse and product design channel for the Company.
In the Mandi, the following operational process was followed: This also provided indirect benefits to the company reducing the risk in several areas of the supply chain eChoupal also provided ITC with an effective marketing vehicle. The effort placed computers with Internet access in rural farming villages. 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