ashish sharma8787
TRANSCRIPT
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The ITC Group is one of the Indias largest private sectorcompanies 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, brandedapparel, packaged foods &
The International Business Division (IBD) of ITC, started in1990, exports agricultural commodities such as soybean meal,
rice food grains (basmati &non basmati), wheat & wheatproducts, lentils, and coffee
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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
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Agri
Inp
ut
Retailer
Farmer
Processor
Kaccha
Adat
Pakka
Adat
Money Lender
Trader
Broker
Dept
of
A
gri
VLW
InputCos
Seed
FertilizersChemicalsPractices
S
tockiest
Govt.Univ
Met DepMSP
InsurancePracticesWeather
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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
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Agri
Input
Retailer
Farmer
Processor
Kaccha
Adat
Money Lender
Trader
Broker
Dept
of
Agri
VLW
Input
CosSeedFertilize
rsChemicalsPractices
Stockist
Govt
.UnivMet DepMSP
InsurancePracticesWeather
Choupal
Sanchalak
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ORGANIZING
Problem of power supply is overcome by solution like solarenergy.
Infrastructure.
Connectivity problem was solved by upgrading BSNL
exchanges with RNS kits, Mobile Choupals,24x7 helpdesketc.
Power
Connectivity
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STAFFINGLocal leadership developmentTraining of sanchalak
Local participation
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SANCHALAK
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CONTROLLINGE-choupalis a centralized concept where all the control
remain in the hands of company.
Itc has commission based salary to control the activityof SANCHALAK
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he Mandi Chain
armer Incursrolley Freight to Mandi = 100&illing Weighing Labour = 70abour Khadi Karai = 50andling Loss = 50
s per MT
270
ProcessorIncurs
ommission to Agent = 100( )ost of Gunny Bags net = 75( , )abour Stitching Loading = 35( )abour at Factory Unload = 35reight to Factory = 250ransit Losses = 10505
otal Chain 775 V V2
http://backup/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/FACTORY_WEIGHMENT.MPGhttp://backup/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/FACTORY_WEIGHMENT.MPGhttp://backup/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/FACTORY_WEIGHMENT.MPGhttp://smb//tmp/BACKUP/My%20Documents/Shiv/Presentations%20to%20CMC/Choupal%20Video%20Segmented/CHOUPAL_PRICE_INFERMATION.MPG -
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he eChoupal Chain
armer Incurs rolley Freight to Mandi = 100&illing Weighing Labour =70 abour Khadi Karai = 50andling Loss = 50
s per MT
270
ProcessorIncurs
Sanchalak = 50ommission to Agent = 100( )ost of Gunny Bags net = 75( , )abour Stitching Loading = 35( )abour at Factory Unload = 35reight to Factory 100= 250ransit Losses = 10
505
otal Chain 775185
185
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e-Choupal Now
States covered 10
Villages covered 40,000
No. of e-Choupals 6,500
Farmers e-empowered 4 million
ACHIEVEMENTS
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. wot AnalysisSTRENGTH)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.
WEAKNESS1) Difficulty in establishing e-choupal in new areas as it is not that
easy task2) Value chains of different crops different problem.3) Implement & expanding of e-choupal
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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 homeappliances, 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
.Tata3)supply chain, revenue models vary across commodities andgeographic