ITC: Going Rural with e-Choupal*

            


Details

Case Code : CLBS036
Publication date : 2004
Subject : Business Strategy
Industry : Agri-business
Length : 03 Pages
Price : Rs. 50

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Key words:

ITC, e-Choupal, kiosk, sanchalak, Agricultural Produce Marketing Committee (APMC) Act, Agri-business.


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 


Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

The caselet explains the e-Choupal initiatives undertaken by ITC, a company engaged in the business of tobacco, paperboards & specialty papers, agri-business etc. The e-Choupal initiatives helped the company to streamline its supply chain. The company found that the investment that it made in the initiative can be recouped in one and a half years.

Issues:

 » How a company used technology to bring about a change in the procurement side of the supply chain.
 » The challenges faced by the company while implementing a technological change.
 » Necessity of effective communication to stakeholders.

Introduction

ITC is one of India’s leading private sector companies with a market capitalisation of around US $ 4 billion and a turnover of US $ 2 billion. It has presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards and other FMCG products.


ITC believed that the profit margins were not as high as they could ideally have been. To a great extent, it was right. The company did not get the desired results due to several reasons - firstly, it did not have sufficient control over the supply chain of the agricultural produce.

For instance, in Madhya Pradesh, soya farmers were generally located at far flung villages scattered throughout the state....

Questions for Discussion:

1. ITC is one of India’s foremost private sector companies. It had been a highly successful company in almost all the industries it entered. Then why did it choose a radical initiative such as ‘e-choupal’?

2. What is ‘e-choupal’ initiative? And what problems did ITC face while implementing this initiative?