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HAPPY
TEACHERS
DAY
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I.T.CE-CH0UPAL
INDIRA SCHOOL OF CAREERDEVELOPMENT
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I.T.C
Indian tobacco company.
Chairman: Y.C. Deveshwar
Presence in tobacco, hotels, paper boards,foods, fashion retailing and commodity
export.Annual sale of $ 2 billion.
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International Business Division
Started in 1990.
Division of ITC engaged in exports of rangeof agricultural commodities.
Contributes over 60% of foreign exchange
earning.
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EE--ChoupalChoupal
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EE--ChoupalChoupal
Choupal is a hindi word which means avillage meeting place, and E here stands
for electronic so it is a village meeting placeon a electronic platform.
It is a virtual market place where vendors
and customers come together to dotransactions.
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EE--ChoupalChoupal
It is a virtual market place where farmerscan transact directly with a processor and
can realize better price for their products. ITC used a SYMBIOTIC-MICRONODAL
model. As both the parties were making
profits at different levels.
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The E-Choupal Services
Relevant & Real-time Information
Commodity prices, Local Weather, News
Customized Knowledge
Farm Management, Risk Management
Supply Chain for Farm Inputs
Screened for Quality, Demand Aggregation for CompetitivePrices & Efficient Logistics
Direct Marketing Channel Lower Transaction Costs, Better Value through Traceability
Products access @ door step @ reasonable prices
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Conventional Business Model
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Disadvantages of the Conventional
Business Model
Too many intermediaries.
Information asymmetry caused byintermediaries as they block flow ofinformation to farmers.
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E-Choupal Model
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Advantages
No hierarchy of brokers.
Internet is used as a low cost medium ofcommunication providing latest information.
Intermediaries are still used for physicaldelivery of produce maintaining low cost .
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E-choupals are set up by ITC with solarpower back up and VSAT connectivity. Theequipment cost for the E-choupal is borneby ITC.
Allow farmers to compare global and local
market price (Mandi)
Advantages
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Advantages
Actual procurement is done at factories andwarehouse hubs. The initial logging is done
through the e-choupal, which provides priceinformation and therefore price certainty.
To farmers they give access to operationalinformation developed by ITC experts,pertaining to cropping, seeds, fertilizers andso on.
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Transaction Costs in Mandi ChainSoybeans Example
Farmer Incurs
Trolley Freight to Mandi = 120Labour = 50Kacchha Adat = 150
Handling Loss = 50
Rs per MT
370
Processor
IncursCommission to Agent = 100Cost of Gunny Bags (net) = 75F
reight toF
actory = 120Handling at Mandi = 40335
Total Chain 705
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Transaction Costs in Choupal Chain
Trolley Freight to ITC Hub = 120Labour = 50
Kacchha Adat = 150Handling Loss = 50
Commission to Sanchalak = 100Cost of Gunny Bags (net) = 75Freight to Factory = 120
Storage & Handling at Hub = 40
50
Cash Disbursement Costs = 50
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The E-Choupal Infrastructure
ITC Kiosk with Internet Access In the house of one trained farmer,
Sanchalak
Within walking distance of target farmers.
Warehousing Hub
Managed by the erstwhile middleman,Samyojak ( coordinator )
Within tractorable distance of target farmers.
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The Privileged Assets of E-Choupal
1. ITC Infrastructure:
a. Computerb. Internet
c. VSAT
d. Power Backup : Solar Cells and UPS2. Physical Reach:
a. Choupals within walking distanceb. Multipurpose WH hubs within tractor able distance
3. Key Intermediaries:
a. Sanchalak (1 per cluster of 5-6 villages)b. Sanyojak (1 per group of 30-40 choupals)
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Key Success FactorSelfSufficient Infrastructure
Power Connectivity
Training
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24 Hubs Upgraded to Malls
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FACILITIES AT CHAUPAL SAGAR
A WIDE RANGE OF PRODUCTSFOR ALL SEGMENTS
TRAINING FACILITIESFOR FARMING COMMUNITY ON
SCIENTIFIC FARMING PRACTICES
GODOWNSFOR STORAGE OFFARM PRODUCE
INFORMATION CENTER FOR ONLINE WEATHER
INFORMATION
CONTINOUSSERVICESFROM 6AM- 9PM
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CSR Initiatives through e Choupal :
Sunerha Kal Sunerha Kal (CSR) Initiatives focus on
Improve Farmer Livelihoods,
Long Term Community Impact programmers,
Livestock Management programmers,
Water Management ,
Self Help Groups focusing on women.
Leveraging capability of
ITC s management skills,
e-choupal reach , human and physical Infrastructure,
The knowledge & experience of NGOs .
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Causeway cum Stop Dam , Nalkui
Earthern Dam Morewani ,MP
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Wheat
Soybean
Soybean
&Wheat
Coffee
Aqua
Wheat
Soybean
Soybean
&Wheat
Coffee
Aqua
Scale Today
Kiosks: 6,200
Villages: 40,000
Farmers: 3.5 million
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Future Plans
e-Choupal Now Next 5 Years
States covered 10 15
Villages covered 40,000 100,000
NO. of e-Choupals 6,500 20,000
Farmers e-empowered 4 million 10 million
For more : visit www.itcportal.com ITC e-Choupal
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Presented by
Kumar Gaurav (21)
Rahul Laddha (22)
Amit Lavharale (23)Mahesh Rathore (24)
Amit Mandal (25)
Mrityunjay Kumar (26)
Mukesh Pardashani (27)Nandan Kumar (28)
Naveen yadav (29)
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THANKS
THANKSDecember 21, 2010
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