ASHISH ATREY

aashishatrey18@gmail.com



The ITC Group is one of the India’s largest private sector



companies with a market capitalization of approximately US $ 4

billion and annual sales of US $ 2billion.
 ITC has a diversified presence in cigarettes, hotels, paperboards,
specialty papers, packaging, agricultural products, branded
apparel, packaged foods &
 The International Business Division (IBD) of ITC, started in
1990, exports agricultural commodities such as soybean meal,
rice food grains (basmati &non basmati), wheat & wheat
products, lentils, and coffee
 Problem faced by ITC IBD
 Lack of Quality product for export business


 Cost of product was high due to intermediaries



 Delay in supply


 No direct link between farmer and company
 Agri Input Retailer
Input
Cos
Seed

Stockiest
Fertilizer Kaccha
s

Broker
Chemicals
Practices Trader

Adat

Processor
Farmer

Pakka
Dept of Agri VLW

Govt
Univ.
Met Dep
MSP
Insurance Adat
Practices
Weather

Money Lender
Steps taken by management

PLANNING
FROM THE BRAINSTORMING SESSION CONDUCTED BY,
ITC-IBD SENIOR EXECUTIVE, CONCEPT OF E-CHOUPAL
EMERGED.
WANT A WIN-WIN SOLUTION FOR BOTH COMPANY AND
FARMERS
 Agri Input Retailer
Input Kaccha
Cos
Seed
Fertilize
Stockist
rs
Chemicals

Broker
Practices Trader
Adat

Processor
Farmer
Choupal
Dept of Agri VLW

Govt
Univ.
Met Dep Sanchalak
MSP
Insurance
Practices
Weather

Money Lender
 ORGANIZING
Problem of power supply is overcome by solution like solar
energy.
Infrastructure.
Connectivity problem was solved by upgrading BSNL
exchanges with RNS kits, Mobile Choupals,24x7 helpdesk
etc.

Power

Connectivity
STAFFING
Local leadership development
Training of sanchalak
Local participation



SANCHALAK
CONTROLLING
E-choupalis a centralized concept where all the control
remain in the hands of company.
Itc has commission based salary to control the activity
of SANCHALAK

 The Mandi Chain
Rs per MT

Trolley Freight to Mandi = 100

Filling & Weighing Labour = 70
Farmer Incurs Labour Khadi Karai = 50
Handling Loss = 50 270

Commission to Agent = 100

Cost of Gunny Bags ( net ) = 75
Processor Labour ( Stitching , Loading ) = 35
Labour at Factory ( Unload ) = 35 505
Incurs Freight to Factory = 250
Transit Losses = 10

Total Chain 775 V V2

 The eChoupal Chain

Rs per MT

Trolley Freight to Mandi = 100

Filling & Weighing Labour =
Farmer Incurs 70 270
Labour Khadi Karai = 50
Handling Loss = 50

Sanchalak = 50
Commission to Agent = 100
Cost of Gunny Bags ( net ) = 75
Processor Labour ( Stitching , Loading ) = 35 505
Incurs Labour at Factory ( Unload ) = 35
Freight to Factory 100 = 250 185
Transit Losses = 10

775
Total Chain 185
 ACHIEVEMENTS
e-Choupal Now

States covered 10

Villages covered 40,000

No. of e-Choupals 6,500

Farmers e-empowered 4 million

.

Swot Analysis
STRENGTH
1) Local leadership
2) Transparency in transaction
3) Sanchalaks are selected carefully
4) Flows of funds to the real owner
5) Able to design a win-win model
6) Bottom up model for entrepreneurship
7) Real time information.
.

WEAKNESS
1) Difficulty in establishing e-choupal in new areas as it is not that
easy task
2) Value chains of different crops different problem.
3) Implement & expanding of e-choupal
OPPORTUNITY
1) Huge scope in other developing and underdeveloped
countries.
2) Entering in new products like coffee, aquaculture and
wheat in other states.
3) Opening up entirely new and more effective channels for
distribution and marketing of a range of goods and
services in rural India.
4) Becoming tested market for new services like selling home
appliances, consumers goods.
THERAT
1)socio-economic characteristics of different areas is
different thus common method cannot be applied.
2)increasing competition from other player like Ruchi and
Tata.
3)supply chain, revenue models vary across commodities and
geographic