Beginning in , ITC set up a network of ICT kiosks around the country, called e-Choupal (an open meeting place in a village). IT for Change Case Study. ITC has a diversified presence in Cigarettes, Hotels, Paperboards of rural value systems that not a single case of theft, misappropriation. The ITC e-Choupal Initiative Case Analysis by Group 7 Jigeesha Nayyar | KC Siddharth | 03? Kunjal Kaw | Mohit Sadhwani | Naman Misra |
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Critical factors in the apparent success of the venture are ITC’s extensive knowledge of agriculture, the effort ITC has made caze retain many aspects of the existing production system, including retaining the integral importance of local partners, the company’s commitment to transparency, evhoupal the respect and fairness with which both farmers and local partners are treated.
The sustainability of the engagement comes from the idea that neither the corporate nor social agendas will be subordinated in favor of the other.
Case Studies – ITC eChoupal
Today its network reaches more than a million farmers. E-Choupal was seen as a medium of delivering critical market information independent of the mandi, thus allowing the farmer an empowered choice of where and when to sell his crop. What started initially as a way to modify the procurement process for crops like soy, and wheat, has now turned into a lucrative distribution and product development channel for ITC. In the mandi system, utc, pricing, and sales happen simultaneously, thus binding the farmer to an agent.
The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.
Sustainability through mutual respect The e-Choupal model has shown that a large corporation can combine a social mission and an ambitious commercial venture; that it can play a major role in rationalising markets and increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and rural communities as well as company shareholders.
The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement. For an Indian company to replicate the operating model of such multinational corporations would have required a massive horizontal and vertical expansion.
A local farmer acting as a sanchalak coordinator runs the village e-Choupal, and the computer usually is located in the sanchalak’s home. This can be exchanged for other ITC products.
The company irc each e-Choupal to serve about 10 villages within a five-kilometer radius. How do we know when we achieve our goals? Web-enabled real time data on crop prices provide the farmer with the market prices for their produce.
This also provided indirect benefits to the company reducing the risk in several areas of the supply chain eChoupal also provided ITC with an effective marketing vehicle. Jump to Sub Navigation. If the farmer finds the quote attractive, he can take the produce to an ITC collection centre studg receive payment within two hours. They also handle the physical transportation of the goods and earn a commission on it. Yet most Indian farmers have remained quite poor. Copyright The DeSai Group.
The e-choupals serve as both a social gathering place for exchange of information choupal means gathering place in Hindi and an echiupal hub.
The e-Choupals are operated by a sanchalak operatorwho also doubles up as an ITC salesman. Jump to Top Navigation. The second was to facilitate collaboration between the many parties required to fulfill echoupzl spectrum of farmer needs.
ITC’s example also shows the key role of sthdy technology – in this case provided and maintained by a corporation, but used by local farmers – in helping to bring about transparency, to increase access to information, and to catalyse rural transformation, while enabling efficiencies and low cost distribution that make the system profitable and sustainable.
The causes include remnants of scarcity-era regulation and an agricultural system based on small, inefficient landholdings. Farmers cawe e-Choupal on an average receive 2. Back to Press Reports. The agricultural system has also traditionally been unfair to primary producers.
By providing information on weather and scientific farming methods, and the supply of high quality farm inputs, ITC enabled the farmers to improve their efficiency and quality of their output. A farmer can visit the kiosk and show a sample of his produce to the sanchalak, who gives him a quote. The model is centered on a network of e-Choupals that serve caes as a social gathering place for exchange of information and an e-commerce hub.
echoupall It is noteworthy that ITC did not hesitate to install expensive IT infrastructure in places where most people would be wary of visiting overnight.
Agriculture is vital to India. It produces 23 per cent of the GDP, feeds a billion people, and employs 66 per cent of the workforce. The first was the deelivery of real-time information independent of the transaction. Its International Business Division was created in for trading in agricultural commodities. Because of the Green Revolution, Casf agricultural productivity has improved to the point that it is both self-sufficient and a net exporter of a variety of food grains.
One of Cqse foremost private sector companies, which has a diversified presence in tobacco, hotels, paperboards, specialty papers, packaging, agri-business, branded apparel, packaged foods and other fast moving consumer goods, initiated e-choupal in As a communication mechanism, this goal is related to the commitment to address the whole system, not just a part of the system.