ITC - Rural Transformation through Technology
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Case Details:
Case Code : ECOA136
Case Length : 16 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : India
Industry : -
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Background Note
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The 'Imperial Tobacco Company of India Limited' was incorporated on August 24, 1910 in Kolkata, India by British American Tobacco (BAT). The name of the company was changed to I.T.C (Indian Tobacco Company) Limited in 1974 and later 'ITC Limited' (the dots were removed) on September 18, 2001...
Genesis of e-Choupal
One day in 1999, ITC Chairman Y. C. Deveshwar (Deveshwar) was closeted with some of his key managers in the company's headquarters, Virginia House in Kolkata to discuss the slow growth of the company's International Business Division (IBD)...
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In the financial year 1998 - 99, IBD, one of India's largest exporters of agricultural produce, (including soya, wheat, sesame, pepper, shrimp, and coffee) had generated Rs. 450 crores in agricultural commodities sales, compared to the Rs. 7701 crores of sales generated by ITC's other divisions...
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Selling through the e-Choupal Network
In the words of Y. C. Deveshwar, the Chairman of ITC,
"With the choupal infrastructure in place, we are hoping to create a system that allows a two-way flow of products and services to the rural economy"...
Looking Ahead
e-Choupal's performance had been heartening for ITC. Farmers
had seen a rise in their income levels because of higher yields, improved
quality and reduced transaction costs...
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Exhibits
Exhibit 1: Financial Performance of ITC over Ten Years
Exhibit 2: Market Capitalization over Ten Years
Exhibit 3: E-Choupal at Work
Exhibit 4: ITC's Rural Hypermarket - Chaupal Sagar
Exhibit 5: Traditional Soyabean Supply Chain
Exhibit 6: Reengineered Supply Chain via E-Choupal
Exhibit 7: How E-Choupal Saved Costs
Exhibit 8: e-Choupal at a Glance
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