BSAP Conference, HBS Dec 1-3, 2005 ITC eChoupal

ITC’s e-Choupal
A Platform Strategy for Rural
Transformation
Ravi Anupindi S. Sivakumar
Stephen M. Ross School of Business CEO - International Business Division
University of Michigan ITC Limited
Ann Arbor, MI 48105 Secunderabad, AP
USA INDIA

December 1, 2005

BSAP Conference, HBS

Problems of Rural Indian Farmer

Sell: sunk costs, inconvenience,
Price Discovery
other losses @ Sell Transaction
Mandi

Transaction
Farmer Market PRODUCT

&
Financing
Money SERVICE
Information
(Aggr)
Lender PROVIDERS

Extension

VILLAGE Center
Knowledge

(Use) Middleman

TOWN
Buy:high prices, spurious goods, information not timely
©Anupindi and Sivakumar
1
BSAP Conference, HBS Dec 1-3, 2005 ITC eChoupal

Root Causes and Implications

ROOT CAUSES IMPLICATION

 Fragmentation  Weak Bargaining Power
 Dispersion  No access to real-time
information
 Heterogeneity  Need for customized knowledge

CHALLENGE

 Weak  Dependence on middlemen

Infrastructure (exploitative cycle of dependency)

e-Choupal Platform

Information

(e.g. Price Discovery) Transaction PRODUCT

Knowledge Choupal Sagar &
(Customized)
SERVICE
PROVIDERS

Samyojak
Sanchalak

VILLAGE TOWN PAN-INDIAN

1. Information and Knowledge are free

2. Freedom of Choice in Transactions
3. Transaction-based income stream for the Sanchalak & Samyojak
©Anupindi and Sivakumar

2
BSAP Conference, HBS Dec 1-3, 2005 ITC eChoupal

e-Choupal: Rural Indian Farmer

Sell: Price discovery @ village, choice, efficiency

Knowledge Information

(Customized) (e.g., Price

Discovery) Mandi

PRODUCT
Farmer &
Choupal Sagar
Transactions
SERVICE

PROVIDERS

Samyojak
Sanchalak

PAN-INDIAN
VILLAGE TOWN

Buy: Information + Customized Knowledge @ village, high quality,

competitive prices, superior service

e-Choupal: Current Scale and Vision

Year 2005: Year
Kiosks: 5000 ©Anupindi and Sivakumar
2010
Villages: 30,000 :
Farmers: 3.5 million Kiosks
:
15000+
Villages
:
100,000
Farmers:
10
million
Wheat

Soybean

Soybean
& Wheat

Coffee

Aqua

3
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