E choupal success story - ITC-

 

E choupal success story

ITC Ltd Launched e-Choupal and later Choupal Saagar as a part of the e-Choupal initiative. E-choupals are small kiosks across the agricultural regions of India having computers and internet access and run by a Sanchalak (trained fanner). These kiosks enabled the local farmers to obtain information on wholesale prices, good farming practices, and to place orders for agricultural inputs.

In 2004, India’s biggest cigarette maker, ITC, opened its first rural hypermarket – Choupal Saagar. By 2007, it had 24 such outlets in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh, and by 2013, 21 of these were earning profits. Though it plans to have 100 such store, ITC has not expanded further yet. Choupal Saagar, is essentially a hub with collection and storage facilities and a unique rural hypermarket offering multiple services all in one place. Choupal Saagars also include farmer facilitation centers with services such as sourcing, training, soil testing, health clinic, cafeteria, banking, investment services, fuel station etc.

Before launching Choupal Saagar, ITC first had to developed the market. This was done by using the its e-Choupal linkages to buy agricultural produce from farmers helping them increase their productivity and incomes by removing the middlemen and empowering them. After this, Choupal Saagar stores were launched to sell a variety of products and services including farm inputs, consumer goods and consumer durables, apparel and fuel. These stores were located near the stock points of ITC’s e-Choupals, ensuring that there existed 1 Choupal Sagar around 25-30 e-Choupals. The farmers could come in, sell their produce, receive cash and then spend it to buy other products at the same place. Thus, the sustainability of this model was ensured.

ITC then took this model a step further by introducing Choupal Fresh in 2006 in Hyderabad. The Choupal Fresh would complete the supply chain which begins at the e-Choupals by offering the urban consumers fresh fruits, vegetables and other farm products. Agri Business Division of ITC conceived e-Choupal as the most efficient supply chain which is aimed at providing value to its customers all around the world on a sustainable basis. This is an initiative which is link directly with the rural farmers for procurement of agricultural/ aquaculture produce . ‘e-Choupal’, which was launched in June 2000 has already become the greatest initiative in rural India.