ITC won the top UNIDO Award at the International Conference on
Sharing Innovative Agri Business Solutions at Cairo (2008) ITC was the 1st Indian Company and 2nd in the world to win the Development Gateway Award for its trail-blazing e-Choupal initiative (2005). ITC's e-Choupal initiative received the Inaugural World Business Award from UNDP (2004). ITC e-Choupal won the Stockholm Challenge Award (2006). ITC's Agri Business has bagged the RuralMarketing Association of India (RMAI) Flame Award 2013 in the category of Excellence in Brand Promotion. Recognising ITC-ABD's effort, the Government of India has conferred on it the coveted "Golden Star Trading House" status. ABD has earned many awards from the Government and various trade organisations during the past decade for being one of the topmost exporters in soyameal, rice etc. This impressive track record symbolises ABD's unbeatable Sourcing and Execution Strength. Low Risk Appetite Weak Market Orientation Low Investment Low Margins Low Productivity Low Value Addition Caught in a vicious cycle of underdevelopment Predicament of Indian Farmers ITC e-Choupal Millenial Venture 38,000 villages, 6500 kiosks & 9 states Services cum Effective Business Model Issues 1. Fragmented farms 1. Weak institutions 2. Involvement of intermediaries 3. Information Asymmetry
Why ITC thought of e-Choupal
Company Logo The Tactical Imperative Capture of Intra-day Price shifts Seasonal price Inflation Daily price inflation ITCs distance from Farmer The Strategic Imperative Horizontal spread Vertical presence Risk management ITCs Supply chain of Soya bean before e-Choupal Initiative
Company Logo
Company Logo Farmer Agri-Input Companies Dealer/ Stockiest Retailer Agril University, Met Dept, Insurance Co. VLW (of Dept of Agriculture) Money Lender Pakka Adtiya (Registered Dealer) KacchaAdtiya (Un-Registered Dealer) Trader Broker P r o c e s s o r ITC-IBD ITCs Supply chain of Soya bean after e-Choupal Initiative
Supply chain of e-choupal Pricing Price Benchmarked e-Choupal Portal Mandi Prices Sanchalak Activities Company Logo Pricing Inbound Logistics Inspection Grading Weighing and Payment Hub Logistics Technolog ical support Inbound Logistics ITC Procurement Hub ITC factories or Warehouse Operations Proximity of Processing Centres
Company Logo Pricing Inbound Logistics Inspection Grading Weighing and Payment Hub Logistics Technolog ical support Inspection and Grading Laboratory Tests Incentives to encourage Quality Company Logo Pricing Inbound Logistics Inspectio n Grading Weighing and Payment Hub Logistics Technolo gical support Weighing and Payment Electronic Weighbridge Full - cash Payment Freight Expenses Documentation Samyojaks Company Logo Pricing Inbound Logistics Inspectio n Grading Weighing and Payment Hub Logistics Technolo gical support Hub Logistics Storage Hub Transportation Cost Risk of Transportation Company Logo Pricing Inbound Logistics Inspectio n Grading Weighing and Payment Hub Logistics Technolo gical support Technological support Nodal Platform Business Function Points Integrated Business Systems 8 Local Languages Company Logo Pricing Inbound Logistics Inspectio n Grading Weighing and Payment Hub Logistics Technological support Other e-Choupal Initiative Company Logo Companies using e-Choupal network
Source: Seminar on Bottom of the Pyramid and CSR, IIM-K, Sept. 24, 2008 Win-Win for all Farmer Community Access to information Empowered decisions Improved agriculture Economic Benefits Dignity Respected Knowledge of Goods and Services Co-opted in Product Design Promise of a Brighter Future ITC Procurement Costs Direct Interaction Distribution Channel Market Intelligence Commission Agents (Kachha & Pakka Adatiyas) Access to Global Markets Future of e-Choupal Company Logo e-Choupal 2.0 Cmpany Logo ITC e-Choupal Footprint Company Logo