I.T.

C
E-CH0UPAL
 I.T.C

 Indian tobacco company.

 Chairman: Y.C. Deveshwar
 Presence in tobacco, hotels, paper boards,
foods, fashion retailing and commodity
export.
 Annual sale of $ 2 billion.
 International Business Division

 Started in 1990.
 Division of ITC engaged in exports of range
of agricultural commodities.
 Contributes over 60% of foreign exchange
earning.
E-Choupal
 E-Choupal
 Choupal is a hindi word which means a
village meeting place, and “E” here stands
for electronic so it is a village meeting place
on a electronic platform.
 It is a virtual market place where vendors
and customers come together to do
transactions.
 E-Choupal
 It is a virtual market place where farmers
can transact directly with a processor and
can realize better price for their products.
 ITC used a SYMBIOTIC-MICRONODAL
model. As both the parties were making
profits at different levels.
 The E-Choupal Services
 Relevant & Real-time Information
 Commodity prices, Local Weather, News
 Customized Knowledge
 Farm Management, Risk Management
 Supply Chain for Farm Inputs
 Screened for Quality, Demand Aggregation for Competitive
Prices & Efficient Logistics
 Direct Marketing Channel
 Lower Transaction Costs, Better Value through Traceability
 Products access @ door step @ reasonable prices
Conventional Business Model
 Disadvantages of the Conventional
Business Model

 Too many intermediaries.

 Information asymmetry caused by
intermediaries as they block flow of
information to farmers.
E-Choupal Model
 Advantages

 No hierarchy of brokers.
 Internet is used as a low cost medium of
communication providing latest information.
 Intermediaries are still used for physical
delivery of produce maintaining low cost .
 Advantages

 E-choupals are set up by ITC with solar

power back up and VSAT connectivity. The
equipment cost for the E-choupal is borne
by ITC.
 Allow farmers to compare global and local
market price (Mandi)
 Advantages
 Actual procurement is done at factories and
warehouse hubs. The initial logging is done
through the e-choupal, which provides price
information and therefore price certainty.
 To farmers they give access to operational
information developed by ITC experts,
pertaining to cropping, seeds, fertilizers and
so on.
Transaction Costs in Mandi Chain
Soybeans Example
Rs per MT

Trolley Freight to Mandi = 120

Labour = 50
Farmer Incurs Kacchha Adat = 150
Handling Loss = 50 370

Processor Commission to Agent = 100

Incurs Cost of Gunny Bags (net) = 75
Freight to Factory = 120
Handling at Mandi = 40
335

Total Chain 705

Transaction Costs in Choupal Chain

Trolley Freight to ITC Hub = 120

Labour = 50
Kacchha Adat = 150
Handling Loss = 50

50
Commission to Sanchalak = 100
Cost of Gunny Bags (net) = 75
Freight to Factory = 120
Storage & Handling at Hub = 40

Cash Disbursement Costs = 50

The E-Choupal Infrastructure

 ITC Kiosk with Internet Access

 In the house of one trained farmer,
Sanchalak
 Within walking distance of target farmers.
 Warehousing Hub
 Managed by the erstwhile middleman,
Samyojak ( coordinator )
 Within tractorable distance of target farmers.
 The Privileged Assets of E-Choupal
1. ITC Infrastructure:
a. Computer
b. Internet
c. VSAT
d. Power Backup : Solar Cells and UPS
2. Physical Reach:
a. Choupals within walking distance
b. Multipurpose WH hubs within tractor able distance

3. Key Intermediaries:
a. Sanchalak (1 per cluster of 5-6 villages)
b. Sanyojak (1 per group of 30-40 choupals)
 Key Success Factor
Self Sufficient Infrastructure

Power Connectivity

Training
24 Hubs Upgraded to Malls
FACILITIES AT CHAUPAL SAGAR
 A WIDE RANGE OF PRODUCTS FOR ALL SEGMENTS

 TRAINING FACILITIES FOR FARMING COMMUNITY ON

SCIENTIFIC FARMING PRACTICES

 GODOWNS FOR STORAGE OF FARM PRODUCE

 INFORMATION CENTER FOR ONLINE WEATHER

INFORMATION

 CONTINOUS SERVICES FROM 6AM- 9PM

CSR Initiatives through e Choupal :
“Sunerha Kal”
 Sunerha Kal (CSR) Initiatives focus on
 Improve Farmer Livelihoods,

 Long Term Community Impact programmers,

 Livestock Management programmers,

 Water Management ,

 Self Help Groups focusing on women.

 Leveraging capability of
 ITC ‘s management skills,

 “e-choupal “reach , human and physical Infrastructure,

 The knowledge & experience of NGO’s .

Causeway cum Stop Dam , Nalkui
Earthern Dam – Morewani ,MP
Scale Today

Kiosks: 6,200
Villages: 40,000
Farmers: 3.5 million Wheat

Soybean

Soybean
& Wheat

Coffee

Aqua
 Future Plans
E-Choupal Now Next 5 Years

States covered 10 15

Villages covered 40,000 100,000

NO. of E-Choupals 6,500 20,000

Farmers E-empowered 4 million 10 million

Presented by
Shantanu Sharma
Abhishek Chaudhary
Sudeep Gupta
Himanshu Bhatia
Stuti Garg
Mohd.Shauzab Kazmi
THANKS

December 8, 2021
THANKS
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