GMBA: Apr 09

Division B

ITC: E -
Choupal
Group No – 4
Shivangi Joshi - GAPR09IT203
Swapna Pai – GAPR09IT207
Sahil Bansal - GAPR09IBWM160
Chandrasekhar R. M. –
GAPR09IT217
Suchint Sahny–
Understanding Rural India

Demographic Status: Status: Farmer

s Agriculture
Population Self Sufficiency Poverty

Contribution to GDP Net Exporter Difficulty to sell

Employment Inefficient Exploitation of Farmer

Background and Usefulness
Farmer
E-
Risk taking ability Choupal
Advantag
Market Led Model
e India
Low Investment
Competitiveness Rural Prosperity
Low Productivity
Higher Productivity Increase Demand
Market
Orientation Higher Incomes Increase GDP

Low Value Addition

Risk Capacity Indian Economy

Low Margin
Increased Investment

Exploitation
 Mandi Operations
Inbound Logistics

Display and Inspect

Auction

Bagging & Weighing

Payment

Outbound Logistics
Drivers of Supply Chain

• Facilities-Computers located
• Inventory
• Transportation
• Information
• Sourcing
• Pricing
Business Model

Farme Farme Farme

r r r

Price
Price
Traders
Dictated by
Dictated by
Sanchalak
Mandis /Middle
the
the Mandi Middlemen
men

Exporter Wholesal
Sold to exporter
such as er/Distrib
/wholesaler/distributo
ITC utor
r at higher prices
Supply Chain
Overview

Farme
r
Samyojak

Farme Sanchal
r ak

IT
Procuremen Farme
t Hub r
Transaction Costs under Mandi and E-
Choupal Systems
Costs Per Farmer ITC Mandi Farmer e- ITC e-
metric Ton (Mandi) Choupal Choupal

Commission 0 100 0 50

Handling 50 10 0 0
Costs

Labor Costs 50 70 0 85

Bagging and 70 75 0 0
Weighing
Costs

Transportatio 100 250 0 100

n
Advantages of the model
• Reduction in costs due to intermediaries
• Removal of intermediary manipulation of
quality
• Better risk management by means of
stronger information infrastructure
• Sanchalak and Samyojak provide correct
bottom-up information
• Helps establish long term relationship with
farmers (direct suppliers)
Key Success Factors: Self
Sufficient Infrastructure

Thorough knowledge Powered by IT

Creating Entrepreneurs
#17
Challenges faced….
 ITC’s Mission:

“Improve the Quality of Life

in Rural India.”

Thank
You