ITC's e-Choupal: Taking E-Business to Farmers
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Case Details:
Case Code : ITSY023
Case Length : 15 Pages
Period : 2000-2002
Pub Date : 2003
Teaching Note :Not Available Organization : ITC
Industry : Varied
Countries : India
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Excerpts
Detailing the
e-Choupal Initiative
Traditionally, a farmer sold his agricultural
produce to a small trader referred to as a 'Kaccha adat.' The small
trader then sold the products to a larger trader called the 'Pakka
adat', who sold the produce in a 'mandi' (market place)...
Overcoming Problems &
Challenges
Building and expanding the e-choupal initiative was not an
easy task for ITC. The company faced several problems like intermediary unrest,
widespread illiteracy, outdated telephone exchanges and sporadic electricity
supply. However, ITC evolved innovative ways to overcome these problems. At
places, where the connectivity was poor due to the lack of proper telephone
lines, ITC upgraded the telephone lines using RNS kits (RAX Network
Synchronisation) and in some cases, by using VSATs to by-pass the telephone
lines completely. To deal with problems related to bandwidth , the company made
use of specially devised technical solutions to manage data along with new
imaging techniques... |
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On an Expansion Spree
Having succeeded in the experiment with soyabean, ITC began to look for new
avenues to expand its business...
Beyond Commodity Trading
Once the e-choupal initiatives began generating good results, ITC realized it
could further leverage the business potential of the choupals...
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Looking Ahead
By January 2003, the e-choupal network included 1,286
kiosks covering nearly a million farmers in around 9000 villages.
Satisfied with the kind of enthusiasm shown by the farmers for the
initiative, ITC was reportedly planning to scale up its activities
further.
It planned to expand at a rate of 3-4 choupals a day and establish
20,000 choupals covering 100,000 villages in 11 more states
(approximately one-sixth of rural India). The company had plans to
expand into other crops (like spices) besides the ones being covered
till the beginning of 2003. The company planned to target international
exports worth $ 400 million by 2005. |
Exhibits
Exhibit I: Agri-Business Initiatives Taken Up By
Some Indian Companies
Exhibit II: ITC's Achievements
Exhibit III: ITC – Income & Expenditure Statements
Exhibit IV: The Traditional Procurement Model
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