2. E – Choupal (June 2000)
An initiative of ITC Limited to link directly with
rural farmers via the Internet for procurement
of agricultural & aquaculture products
The programme involves the installation of
computers with Internet access in rural areas
of India to offer farmers up-to-date marketing
and agricultural information.
3. To Develop a Channel Directly Linking farmers to
Organizations:
Initial Objective:
⋗Access to target soya producing markets & achieve organized
buying over the current Indian soya procurements systems in long
term
Mid Objective:
⋗Access to key agricultural/products producing markets & achieve
organized buying & selling in key Indian rural markets
Current Objective:
⋗To expand the network further & offer a complete package to
server rural customer daily needs & develop the platform for the
future (to get services like web tourism)
4. The eChoupal infrastructure
• ITC Kiosk with Internet Access and Local Language Content
(Weather, Prices, Farming Practices etc)
– In the house of one trained farmer, Sanchalak
– Within walking distance of target farmers
• Warehousing Hub with Internet Access
– Managed by the erstwhile middleman, Samyojak
– Within tractorable distance of target farmers
5. The ITC eChoupal Scale
Today
– 6500 Choupals are serving over 4million farmers & villagers
across 40000 villages (adding 6 a day)
• Higher capture of consumer spend
• Building capacities of rural communities
Vision
– Reach 100,000+villages by 2012
• Dealing with wider variety of crops
• Creating infrastructure for Education and Healthcare
services
• Enhancing Quality of Life in rural India
6. E-choupal: Strategic Thrust
Procurement: cost & quality optimization
o Strategic sourcing support to the Foods business (support creation of
verticals in wheat, soya, corn, potato etc.)
o Cost-effective sourcing for exports/domestic external business
Rural Distribution
o ‘Last mile connectivity’: 100 partnering companies
o Diverse range of goods/services: FMCG, consumer durables, agri-inputs,
paid extension services etc.
Financial Services
o Insurance (focus: weather)
o Credit (focus: Kisan Credit Card scheme)
Rural retail
o 24 Choupal Saagars operational
6
7. E- Choupal Saagar – Benefits to a Farmer
• Option of selling to Choupal Saagar or Mandies
• In some crops, farmers earns 25% higher prices than
selling to Mandies
• Profit realization increased upto 60%
• Availability of Loan facilities
• Availability of brands/quality products at best prices
• Exposure to latest information
• Difference in net earning will be high if saving on
commission to middle man & cost of transport are
considered
8.
9.
10. Main Competitiors
Godrej Aadhar – Godrej
Kisan Seva Kendra - IOC
Tata Kisan Sansar - TATA Chemicals
Mahindra Subh Labh – M&M
HUL iShakti – HUL
Parry’s Conner - Murugappa Group
11. Conclusion
• An innovative strategy which is elaborative & extensive in
rural markets so far.
• Rural wealth creation in agriculture through securing
empowerment, collaboration & competition
• A transformational initiative for sustainable development of
society
• Commitment to transparency & the respect & fairness with
which both farmers & local partners are treated.
