Group 4b Echoupal

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GMBA: Apr 09 Division B

ITC: E Choupal Group No – 4

Shivangi Joshi - GAPR09IT203 Swapna Pai – GAPR09IT207 Sahil Bansal - GAPR09IBWM160 Chandrasekhar R. M. – GAPR09IT217

Suchint Sahny–

Understanding Rural India Demographic s

Status: Agriculture

Status: Farmer

Population

Self Sufficiency

Poverty

Contribution to GDP

Net Exporter

Difficulty to sell

Employment

Inefficient

Exploitation of Farmer

Background and Usefulness Farmer Risk taking ability

EChoupal Market Led Model

Low Investment

Advantag e India

Competitiveness

Rural Prosperity

Higher Productivity

Increase Demand

Higher Incomes

Increase GDP

Risk Capacity

Indian Economy

Low Productivity Market Orientation Low Value Addition Low Margin Exploitation

Increased Investment

Mandi Operations Inbound Logistics

Display and Inspect

Auction

Bagging & Weighing

Payment

Outbound Logistics

Drivers of Supply Chain • • • • • •

Facilities-Computers located Inventory Transportation Information Sourcing Pricing

Business Model Farme r

Farme r

Farme r

Price Traders Dictated by Sanchalak the Mandis /Middle the Mandi Middlemen men

Price Dictated by

Exporter Wholesal Sold to exporter such as er/Distrib /wholesaler/distributo ITC utor r at higher prices

Supply Chain

Overview

Samyojak

Farme r Farme r

IT Procuremen t Hub

Farme r

Sanchal ak

Transaction Costs under Mandi and EChoupal Systems Costs Per metric Ton

Farmer (Mandi)

ITC Mandi

Farmer eChoupal

ITC eChoupal

Commission

0

100

0

50

Handling Costs

50

10

0

0

Labor Costs

50

70

0

85

Bagging and Weighing Costs

70

75

0

0

250

0

100

Transportatio 100 n

Advantages of the model • Reduction in costs due to intermediaries • Removal of intermediary manipulation of quality • Better risk management by means of stronger information infrastructure • Sanchalak and Samyojak provide correct bottom-up information • Helps establish long term relationship with farmers (direct suppliers)

Key Success Factors: Self Sufficient Infrastructure

Thorough knowledge

Powered by IT

Creating Entrepreneurs

#17

Challenges faced….

ITC’s Mission:

“Improve the Quality of Life in Rural India.”

Thank You

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