Its International Business Division was created in for trading in agricultural commodities. The concept of eChoupal was introduced in June as an initiative to improve the supply chain by linking directly with farmers for procurement. It was also designed to play the role of a social gathering place, for the exchange of information as well as a place for e-commerce transactions. What started initially as a way to modify the procurement process for crops like soy, and wheat, has now turned into a lucrative distribution and product development channel for ITC.
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Please note: 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. Chat with us Please leave your feedback. Traditionally, a farmer sold his agricultural produce to a small trader referred to as a 'Kaccha adat. 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The company faced several problems like intermediary unrest, widespread illiteracy, outdated telephone exchanges and sporadic electricity supply.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. To deal with problems related to bandwidth , the company made use of specially devised technical solutions to manage data along with new imaging techniques On an Expansion Spree Having succeeded in the experiment with soyabean, ITC began to look for new avenues to expand its business Once the e-choupal initiatives began generating good results, ITC realized it could further leverage the business potential of the choupals By January , the e-choupal network included 1, kiosks covering nearly a million farmers in around 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 choupals a day and establish 20, choupals covering , 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 Case Study Volumes Collection. Business Reports Link:- Business Reports.
Excerpts Detailing the e-Choupal Initiative Traditionally, a farmer sold his agricultural produce to a small trader referred to as a 'Kaccha adat. Looking Ahead By January , the e-choupal network included 1, kiosks covering nearly a million farmers in around villages.
ITC eChoupal Initiative
Below are the available bulk discount rates for each individual item when you purchase a certain amount. Register as a Premium Educator at hbsp. Publication Date: October 28, Industry: Agriculture.
ITC's e-Choupal: Taking E-Business to Farmers