ITC E-Choupal Analysis

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ITC e-Choupal ITC Limited is an Indian conglomerate with its headquarter in Kolkata, India. With diversifications into 5 different business segments, it is currently worth <VALUE>. The five broad divisions are Hotels, Paperboards and Packaging, FMCG, Information Technology and Agri-business. The agri-business division (ABD) of ITC is one of the largest contributors to ITC bringing in 60% of its total foreign exchange earnings. Started in 1990, ITC’s ABD is currently the second largest exporter of agri-products in the country. The prime areas of focus are, • Feed Ingredients, for example Soyameal • Food Grains such as rice, wheat • Marine Products like prawns and shrimp • A variety of processed food such as concentrates, fruit purees, frozen…show more content…
ITC has created a strong and enduring value chain through a on-of-a-kind rural digital network, along with an understanding the general agricultural practices in India, in-depth research into building an efficient and competitive supply chain that has empowered farmers by delivering value across the supply chain. The range of agri-products is procured from a wide range of places in India including Madhya Pradesh, Karnataka, Gujarat and the Northern plains. All the products are cleaned, processed and packed hygienically to maintain the quality of the food. Quality control is of utmost importance and needs to be maintained at every stage – buying, milling, state-of-the-art processing, storage, loading and dispatch. ITC’s Agri- Business division, in order to improve efficiencies and the supply chain ITC introduced the e-Choupal as a more efficient supply chain with the aim of delivering high quality products and values but sustainably. Despite being such a large company and having a strong brand like ITC, ITC-ABD faced a lot of problems in its agri-business: • Lack of sufficient control over supply chain • Lack of storage infrastructure, handling of produce and subsequent…show more content…
To make this model scalable, ITC focused on 4 main steps: 1. Eliminate any non-value added activities 2. Differentiated product through identity preserved supply chains 3. Value added products traceable to farm practices 4. E-market for spot transactions and support services to future exchange The e-choupal has created a vital channel,that efficiently carries products and services into and out of rural areas, and is able to recover the costs through the agri-sourcing efficiencies. This initialitve now covers 40,000 villages through 6500 installations and helping over 4 million farmers. The website currently provides information to farmers across the states of Uttar Pradesh, Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh and Tamil
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