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    Case Study - RV

    Uploaded by

    Karan Wadhawan
    ITC is an Indian conglomerate with businesses in agriculture, IT, FMCG, and hospitality. In 1990, ITC started an international business division to export agricultural commodities. Through its e-Choupal initiative, ITC has empowered Indian farmers by providing internet access to market and weather information. This has helped farmers increase profits by reducing intermediaries and enabling direct sales. The e-Choupal model addresses issues in Indian agriculture like fragmented land holdings and lack of infrastructure by providing a local computer center and lead farmer, called a Sanchalak, to interface with farmers.

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    Case Study - RV

    Uploaded by

    Karan Wadhawan
    136 views3 pages
    ITC is an Indian conglomerate with businesses in agriculture, IT, FMCG, and hospitality. In 1990, ITC started an international business division to export agricultural commodities. Through its e-Choupal initiative, ITC has empowered Indian farmers by providing internet access to market and weather information. This has helped farmers increase profits by reducing intermediaries and enabling direct sales. The e-Choupal model addresses issues in Indian agriculture like fragmented land holdings and lack of infrastructure by providing a local computer center and lead farmer, called a Sanchalak, to interface with farmers.

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    Case study - RV

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    ITC is an Indian conglomerate with businesses in agriculture, IT, FMCG, and hospitality. In 1990, ITC started an international business division to export agricultural commodities. Through its e-Choupal initiative, ITC has empowered Indian farmers by providing internet access to market and weather information. This has helped farmers increase profits by reducing intermediaries and enabling direct sales. The e-Choupal model addresses issues in Indian agriculture like fragmented land holdings and lack of infrastructure by providing a local computer center and lead farmer, called a Sanchalak, to interface with farmers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    136 views3 pages

    Case Study - RV

    Uploaded by

    Karan Wadhawan
    ITC is an Indian conglomerate with businesses in agriculture, IT, FMCG, and hospitality. In 1990, ITC started an international business division to export agricultural commodities. Through its e-Choupal initiative, ITC has empowered Indian farmers by providing internet access to market and weather information. This has helped farmers increase profits by reducing intermediaries and enabling direct sales. The e-Choupal model addresses issues in Indian agriculture like fragmented land holdings and lack of infrastructure by providing a local computer center and lead farmer, called a Sanchalak, to interface with farmers.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Case study

    ITC is one of India's foremost private-sector companies with a diversified presence


    in hospitality, agri-business, information technology (IT), and fast moving
    consumer goods (FMCG) sectors.
    The company's international business division (IBD), started in 1990, exports a
    range of agricultural commodities. With its e-Choupal' initiative, the IBD has
    enabled Indian agriculture to significantly enhance its competitiveness by
    empowering Indian farmers through the power of the Internet. This
    transformational strategy has progressively created a huge rural distribution
    infrastructure, significantly enhancing the company's marketing reach.
    The e-Choupal' model has helped in effectively tackling the challenges posed by
    the unique features of Indian agriculture, characterized by fragmented farms, weak
    infrastructure and the involvement of numerous intermediaries, who block critical
    market information from passing to the farmers and use that information for getting a
    big margin for themselves, thereby withholding the farmers from getting the proper
    price of their products.

    It also enables the company to set up a back-up physical service support at the
    village level, called 'Choupal, through a 'Sanchalak'—a lead farmer, who acts as the
    interface between the computer and the farmer. ITC accumulates information
    regarding weather, modern farming practices, and market prices from sources like
    the Meteorological Department, agri-universities, niandis' (regional market), etc.,
    and uploads all the information on its e-Choupal' web site. All this information is
    then customized according to the local farmers' requirements and is translated into
    the local language using a computer set up by ITC in the "sanchalak's" house. A
    'sanchalak' then accesses this information, facilitates its dissemination to farmers,
    and supports market transactions by:
    ■ Transmitting information about weather, prices, government policies, and
    scientific and technological advancement.
    ■ Transferring knowledge about farm management, risk management, use of
    insecticide, pesticide etc.
    ■ Facilitating sales of farm inputs
    ■ Offering the choice of an alternative output-marketing channel for conve-
    nience and lower transaction costs to the farmer right at his doorstep
    ■ Serving as an interlocking network of partnerships (ITC + Meteorological
    Department + Universities + 'Sanyojaks'— the erstwhile commission agents) and
    bringing in the most relevant information, knowledge and inputs.
    This, in turn, helps farmers to select the right crop, improve the productivity
    of their farms, become market-oriented by staying informed about the actual price
    being offered in the market, thereby enabling better price realization. ITC's e-
    Choupal' is, thus, an innovative open communication platform that brings together
    all the stakeholders—farmers, sellers, buyers— along with useful information and
    service providers on the same page.
    Case Discussion Questions
    1. Do you think ITC's 'e-Choupal' model is an effective tool for overcoming
    distance-related communication barriers? Justify.
    2. ITC's e-choupal is an innovative open communication platform that brings
    all the stakeholders—farmers, sellers, buyers— along with useful information
    and service providers on the same page. What is your take on it? Justify.
    3. Try to understand how important the role of a 'sanchalak'—(a lead farmer)
    is, who acts as the interface between computer and the farmers. .Explain in your
    words.
    4. What kind of communication ability do you think is needed to be successful
    in a set up like e-choupal? Defend your standpoint.

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