Presented By- Group 3 Imran Sayed Arif Khan Subodh Mhatre Vinod Ambolkar Rohi Meher Venkatesh Mani

ITC LTD.
Diversified group of companies with operations in

various industry segments from cigarettes to apparels.

Annual turnover is of the order US$2.4 billion One of the largest retailing network in the country

Ranked 8th in the ET 500 survey.

Products Cigarettes, hotels, apparels, agriculture, etc.

ITC AGRI BUSINESS DIVISION

ITCs Agri Business Division (ABD) is the countrys

second largest exporter of agri products, with exports of over Rs. 1000 Cr (Rs. 10 Billion)
ABD domestic sales of agri-products are in excess of

Rs. 1500 Crores (Rs. 15 billion).

Two-third of its business consisted of soybean and its

derivatives.

 Inception of e-Choupal in June 2000.

An initiative that enabled rural Indian farmers to enhance

their efficiency through price transparency over the

Internet.
The e-Choupal model has been specifically designed to

tackle the challenges posed by the unique features of

Indian agriculture.
Indian farmer has been trapped in a vicious cycle.

E-CHOUPAL BUSINESS MODEL.

The model requires ITC to make significant investments to

create and maintain its own IT network in rural India.

Each e- Chopal costs between US$3,000 and US$6,000 to

set up and about US$100 per year to maintain.

The sanchalak(the host farmer) benefits from increased

prestige and a commission paid him for all e-Chopal

transactions.

E-CHOUPAL BUSINESS MODEL.

The farmers can use the computer to: To access daily closing prices on local mandis. Global price trends.

Find information about new farming techniques.

The farmers can do it directly or, because many farmers are

illiterate, via the sanchalak.

The sanchalak typically aggregates the village demand for these

products and transmits the order to an ITC representative.

E-CHOUPAL BUSINESS MODEL.

ITC offers to buy the crop directly from any farmer.
The farmer then transports his crop to an ITC processing

centre where:
Crop is weighed electronically Assessed for quality

The farmer is then paid for the crop and a transport fee.
Bonus points, are given for crops with quality above the

norm, are exchangeable for products that ITC sells.

MANDI VS ECHOUPAL.
More accurate weighing.
Faster processing time. Prompt payment.

Access to a wide range of information:

Accurate market price knowledge Market trends Receive a higher price for their crops. The percentage of farmers planting soy has increased

dramatically, from 50 to 90% in some regions.

CURRENT NETWORK SIZE.

STRATEGY FOR THE FUTURE

Followers will soon imitate ITC and eliminate the

companys competitive advantage.

ITCs vision for e-Choupal extends many generations. ITC wants e-Choupal to evolve into a full-fledged

orchestrator of a two-way exchange of goods and services between rural India and the world.

THE E-CHOUPAL WAVES

The soy e-Choupal is Wave 1, with several more to

follow: Wave 2 : identity preservation through the chain Wave 3: by building the concept of traceability into the supply chain. Wave 4: creates institutions. Wave 5: elaborates the rural marketing and distribution strategy Wave 6: sourcing IT-enabled services from rural India