Itc e Choupal Ppt Final 111114132618 Phpapp01

8/10/2019 Itc e Choupal Ppt Final 111114132618 Phpapp01

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ByPriyankka Chaurasia

IT, UIT-RGPV



Agenda

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ITC e-Choupal : An Introduction,

Stake holder Analysis1

Comparison of status of Supply Chainbefore and after ITC e-Choupal2

Critical Analysis, and Comparison

with HKB3

Future Scope4



ITC e-Choupal : An Introduction

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ITC :An Overview Incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company

Company rechristened 'ITC Limited‘ in 1974

One of the 8 Indian Companies to feature in ‘Forbes A-list’ for 2004

Only Indian FMCG Company to feature in Forbes 2000 List

Among top in : Sustained value creation (BT-Stern Stewart survey)

Operating profits

Cash Profits

Ranks No. 4 among Indian listed Private Sector Companies by market cap. (@ April

09)

No. 1 in FMCG Sector

Rated as one of India’s Most Respected Companies (IMRB-Businessworld Survey

2006)

Diversified conglomerate with interests ranging from Tobacco to Hospitality

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http://www.itcportal.com/the_itc_profile/ads/ad.htm






ITC’s Agri Commodity Divison

Farm linkages in 14 states covering Soya, Wheat, Marine products,Coffee etc. Focus on value added agri commodities

Unique CRM programme in commodity exports

Leveraging IT for the transformational ‘e-Choupal’ initiative

Rural India’s largest Internet-based intervention

Over 40,000 villages linked through 6500 e-Choupals

servicing over 4 million farmers

Distinctive sourcing capability for ITC’s Foods business



Low Risk Appetite

Weak Market

Orientation

Low InvestmentLow Margins

Low ProductivityLow Value Addition

Caught in a vicious

cycle ofunderdevelopment

The predicament of Indian Farmers



ITC e-Choupal Started in the year 2000 Target Area so far 38,000 villages, 6500 kiosks, 9 states Wholly owned by ITC

Why it become a success ? Only initiative to attempt to combine Services and an

Effective Business Model successfully

Designed to address the issues such as:

1. Fragmented farms2. Weak institutions3. Involvement of intermediaries4. Information Asymmetry



ITC’s Supply chain of Soya bean before e-ChoupalInitiative

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Farmer

Agri-InputCompanies

Dealer/Stockiest

Retailer

Agril University,Met Dept,

Insurance Co.

VLW (of Dept of

Agriculture)

Money

Lender

Pakka Adtiya

(Registered Dealer)

KacchaAdtiya

(Un-Registered Dealer)

Trader

Broker

P r o c e s s o r

ITC-IBD



t



upp y c a n post re-eng neer ng

Pricing

Previous day’s closing price used as benchmark price fornext day

Mandi prices communicated to sanchalak through e-Choupalportal

Sanchalak inspects the sample, assesses quality and givesfarmer a conditional quote and a note (name/village/qualitytests/approx. quantity/conditional price), if farmer decides tosell to ITC

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Pricing InboundLogistics

InspectionGrading

WeighingandPayment

HubLogistics

Technologicalsupport



Inbound Logistics Farmer proceeds to the nearest ITC procurement hub with

the note

Some procurement hubs are ITC factories, others are purely

warehouse operations ITC’s aim is to have a processing centre within 30-40 km

radius of its farmers

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InspectionGrading

WeighingandPayment

HubLogistics




Inspection and Grading At the ITC procurement hub, laboratory tests are conducted

on a sample of farmer’s produce

To change farmer’s attitude and appreciating produce

quality, ITC is developing lab tests to reward farmers withreward points for better quality supply

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Inspection Grading

WeighingandPayment

HubLogistics




Weighing and Payment Farmer’s produce is weighed on electronic weighbridge

He is then given full cash payment

Freight expenses are reimbursed

Appropriate documentation at each stage and farmer isgiven a copy of that

Samyojaks handle cash operations

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Inspection Grading

WeighingandPayment

HubLogistics




Hub Logistics Farmer transports his produce to the nearest processing

centre or storage hub

ITC incurs the transportation cost

The farmer bears the risk of transportation until produce isdelivered and the sale is completed

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Inspection Grading

WeighingandPayment

HubLogistics




Technological support

Nodal platform catering to commodity blending, agriculturaltrading, e-choupal &rural distribution

24,000 personalized business function points

110,000+ pre-built business function points

Integrated Business Systems for Direct AgricultureProcurement, Rural Distribution, e-Choupal Management,Exports, Insurance, Aqua Processing & Commodity blending

Support for 8 local languages

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InspectionGrading

WeighingandPayment

HubLogistics




A win-win Deal

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Farmers gain

• Better informationContent

• Better info timing

• Less transportationCost

• Transaction duration

• Weighing accuracy

• Professionalism

ITC gains

• Disintermediationsavings

• Freight costs

• Quality control• Risk management



Other e-Choupal Initiative

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Companies using e-Choupal

network

Source: Seminar on Bottom of the Pyramid and CSR, IIM-K, Sept. 24, 2008



Critical Analysis of ITC’s Supply Chain

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Stake holder AnalysisPrimary

Stakeholders

Interest

Farmer Community

Access to information – Empowered decisions – Improved agriculture

Economic benefits through lower transaction costs andprocess efficiencies

Served with dignity Knowledge bundled sale of goods and services Co-opted in product design Hope for a brighter future

ITC

Lower procurement costs Direct interaction with farmers - Control on quality &

supply security Low cost distribution channel Access to market intelligence

Commission Agents

(Kachha & Pakka

Adatiyas)

Gain access to global markets through ITC and commissionto compensate some of the loss revenue



Efficiencies in e-Choupal network Last mile low cost solution

Full Service approach

Demand aggregation

Third party seller

Extensive use of technology

Access to information about customers

Pull based strategy



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Drivers ofSupply Chain

Information

Logistics at hub

Transportation

Storage facilities athub

Who are inproblems

Local Mandi

Mandi laborers

Market near Mandi

Small processors

Risk associated with e-Choupal

Eroded dominance ofCommission agent

Authenticity ofinformation

Problem of Powerand internetconnectivity



Future of e-Choupal

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e-Choupal 2.0

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e-Choupal 3.0.The Deepening

NEW BUSINESSES:

1) Rural jobs and employability

2) Personalised agri services.

MORE INTERACTION: Through Choupal Saagars and

Haats and via mobile phones

NEW TECHNOLOGY: Use of especially enabledmobile phones, analytics, new partner

www.themegallery.com Company Logo



ITC e-Choupal Footprint

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Itc e Choupal Ppt Final 111114132618 Phpapp01

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