| ITC's e-Choupal: Taking E-Business to Farmers |  | 
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 Case Details:
 
 Case Code : ITSY023
 Case Length : 15 Pages
 Period : 2000-2002
 Pub Date : 2003
 Teaching Note :Not Available
 Organization : ITC
 Industry : Varied
 Countries : India
 
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 << Previous ExcerptsDetailing the 
			e-Choupal InitiativeTraditionally, a farmer sold his agricultural 
			produce to a small trader referred to as a 'Kaccha adat.' The small 
			trader then sold the products to a larger trader called the 'Pakka 
			adat', who sold the produce in a 'mandi' (market place)... 
	
		| Overcoming Problems & 
ChallengesBuilding 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widespread illiteracy, outdated telephone exchanges and sporadic electricity 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. At 
places, where the connectivity was poor due to the lack of proper telephone 
lines, ITC upgraded the telephone lines using RNS kits (RAX Network 
Synchronisation) and in some cases, by using VSATs to by-pass the telephone 
lines completely. 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... Beyond Commodity Trading
 Once the e-choupal initiatives began generating good results, ITC realized it 
	could further leverage the business potential of the choupals... 
	
		|  | Looking AheadBy January 2003, the e-choupal network included 1,286 
		kiosks covering nearly a million farmers in around 9000 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 3-4 choupals a day and establish 
		20,000 choupals covering 100,000 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 2003. The company planned to target international 
		exports worth $ 400 million by 2005.
 |  ExhibitsExhibit I: Agri-Business Initiatives Taken Up By 
			Some Indian CompaniesExhibit II: ITC's Achievements
 Exhibit III: ITC – Income & Expenditure Statements
 Exhibit IV: The Traditional Procurement Model
 
 
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