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produces 23% of GDP, feeds a billion people, and employs 66% of the Workforce
Farmers still suffering Unfair agricultural system Mandi system ITC initiative
Business model
Farme r
Ghani
Cooperative Mill
Less capital
ITC make significant investments to create and maintain its own IT network in rural India
Computer in farmers place, linked to the Internet via phone lines or, increasingly, by a VSAT connection US$3,000 and US$6,000 to set up and about US$100 per year to maintain the system Sanchalak ( incurring cost and serve the entire community) Price determination,ordering of agricultural needs ITC crop procurement directly. Higher price to crops
The system --2 more accurate weighing, faster processing time, and prompt payment,
Commission fee reduction in mandis ITC product innovation plus gains in logistics, marketing tactics
Farmer Benefits Overall rural development total yield profit and opening of alternate option
USE of technology
Is it a Profitable Rural transformation Issues 1. transport 2. electric Power 3.Information and Infrastructure 4. lacking in modern resources
IS Can the modern methodology and technology be deployed in rural India profitably
Agriculture 23% of the GDP, feeds a billion people and employs 66% of the workforce Non-optimal farming practices and capricious weather patterns corrupt and inefficient systems unprofessional business environment made the sector unattractive to modern companies and blocked their influence in rationalizing the market Green revolution and by 1970 we became exporter for the agricultural yield still most Indian farmers are very poor as a result of land redistribution policies
Started with the CSR and shareholder value creation with social development
The oil seed complex
BUSINESS MODEL
Selecting And Training of Sanchalak Motivation qualities for their role I. Help their communities II. Profitable Business for themselves III. Getting Access to a functional computer 2. Co operating commission agent
1.
ATTRIBUTE OF ITC
Technical Architecture
APPLICATIO N
SERVERS
GOALS
CLIENTS
PLANNNG
NETWORK
PEOPLE
SYSTEM SOFTWARE
PROCESS
Power
Solar battery
Connectivity
Dial up connection
UPS
V-SAT
printers
SOFTWARE
OS
Windows 98
Word processor
Ankur
Other
Sunera kal
Video clips
Boon to villages include: Children are using computers for schoolwork and games Operation and agricultural strategy by (sanchalaks) World wide exposure to villager for agricultural benefit Pro- youngsters (entertainment factor) Flaws with the system Commission agents reduction in there share Labour from mandis lost jobs (but will be reemployed by ITC) Farmers purcahses near mandis reduced
Mandi TAX now paid to mandis nearest to procurement center thus resulting in lo The efficiency pressures imposed by e-Choupal has spurred industry consolidation.
Challenges
Future Strategy
Valuation and grading the output Traceability in supply chain & food safety and quality control multiple buyers and sellers execute a range of transactions (not ITC will be sole in charge) rural marketing and distribution strategy with organization of people, processes, and partners vision of eventually sourcing IT-enabled services from rural India Telemedicine, eco-tourism, traditional medicine, and traditional crafts are some of the services that can be sourced from rural India