Study Of Itc E-choupal-chinmay Bande

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  -Chinmay Bande (A-65),MKT

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is large Indian conglomerate with diversified business in packaged consumer goods, hotels, paperboard and packaging, information technology and agri-business; with annual sales of US $ 5 billion and a market capitalization of US $ 18 billion. A c c e s s I b I L I t y Turnover per market

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 ~~~~~. ÐAbout 68% of these markets remain untapped mainly due to inaccessibility ÐIt is uneconomical to access a large no. of small villages with very low population density spread over large geographical area ÐLimited storage facilities ÐLarge no. of intermediaries and their low capacity to invest in business These things make the task of reaching rural consumers very complex. And existing system is as1. Haats (periodic village markets): no. in India about 42,000-one haat covers 20-50 villeges-300 outlets-visited by more than 4,500 people 2. Mandis (agri-market): set up by state govt.-6800 in India-each catering 0.14 million people 3. Rural fairs (melas)


  
ÐITC͛s e-Choupal is an example of how a commercial venture can provide a channel for knowledge and opportunity, bringing global resources and practices to Indian villages as well as higher incomes for farmers, and helping create the conditions for many other enterprises to cater to the rural market. Ð1999-volatile world of agri-commodity trading ÐProject Symphony Ð3rd Oct.1999-first e-Choupal ÐElements of e-Choupal:-Sanchalak, Samayojak -PC, printer & UPS -VSAT connection -Solar panel -Mobile e-Choupals -Training


    ÐRelevant & Real-time Information ʹ Commodity prices, Local Weather, News ͻ Customised Knowledge ʹ Farm Management, Risk Management ͻ Supply Chain for Farm Inputs ʹ Screened for Quality, Demand Aggregation for Competitive Prices & Efficient Logistics ͻ Direct Marketing Channel for Farm Produce ʹ Lower Transaction Costs, Better Value through Traceability ÐMarketing Services ʹ Market Research, Brand Building, Product Demonstration ͻ Governance services ʹ Bhoomi ͻ Health with Private Health Service Providers ʹ Apollo ͻ Education ʹ ILFS ͻChoupal Sagar services ʹSoil Testing, Medical facilities, Bank & Insurance, Entertainment, Cafeteria, Petrol/ Diesel Station


  
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ͻ Better supply chain

for ITC͛s Food & Agri-Businesses ʹ Costs, Quality, Traceability ͻ Access to the Rural Markets ʹ Through a Virtuous Cycle created by ͞Larger Incomes͟, and founded on ͞Trust͟ that is built ͻ New ITES Business Opportunities ʹ Health, Education, Entertainment, e-Governance ͻ Shareholder Value through Serving Society ʹ Also, the infrastructure serves as a reliable delivery mechanism for resource development initiatives (e.g. water management) ͻRural market research

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 ÐITC-IBD͛s turnover has grown from Rs.300-3000 crore ÐThere are currently 6500 e-Choupals covering 38,000 villages and catering to more than 4 million farmers ÐIt has also set up rural malls Choupal Sagars at warehousing hubs where farmers have been brining their produce to deliver after selling to ITC. There are 24 Choupal Sagars already up and running ÐThis network is now being used to sell non-ITC products to the villages ÐITC procures 80% of its procurement via Web Channels ÐIBD was just another non-core activity within ITC group and it was on the verge of being divested. Today , however, IBD is one of the core business of ITC

g    1) ITC website 2) Book ͚Rural Marketing͛ by Pradeep Kasyap & Mr. Raut 3) Book ͚Breakthrough Innovation͛ by Mr.Poras Munshi