...What was ITC’s motivation for creating the eChoupal? - To achieve goal of from current $100M to $442.6M (growth) - Business model that would bring the IBD up to speed - To increase ITC’s margins/profits through savings, and added business, through maximizing the presence of a one-stop shop service that attract farmers - To skip middle-level transactions/processes that complicate value chain and which introduces more costs - To improve competitiveness and efficiency of the entire value chain so the business achieves its full potetntial - In order for the source, the farmers to have information to understand their product in a global context so that they could plan their activites with more confidence –> Farmers make informed choices - Answer some problems of the value chain: o Prob 1: CA or commission agents pocket the diff between the bid and selling price to ITC o Prob 2: inaccurate weighing as farmers lose an average of $2.22 per lot or 10kg o Prob 3: delayed / credit payments to farmers o Prob 4: slow transaction process / farmers have to wait o Prob 5: farmers have no choice and couldn’t turn down the offers of CAs o Prob 6: no warehouse for farmers o Prob 7: prices only discovered by farmers at the end of their growing and selling process o Prob 8: farmers did not have options and information, and was used to subsistence living - In order to reduce cost and inefficiency...
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...Monitor and Control Part Six Monitor and Control 9-10 Part One – Executive Summary ITC is one of India’s largest private sector companies and is well diversified. It has business units operating in multiple industries including soybean, tobacco, paperboard, retail, hospitality and foods among others (The ITC eChoupal Initiative). Although ITC is extremely profitable and one of the most respected companies in the world, they do face margin issues within their International Business Division (IBD). The IBD is ITC’s exporting agricultural commodities division, which is operated out of India. India’s agricultural sector is home to 72% of the population and 60% of their workforce creating a market with extreme profit potential. However, the 100 million the IBD made in 1998 is a nominal contribution when compared to the 2 billion in revenue ITC collected from all divisions. In March of 1999 Chief Executive S. Sivakumar was approached by ITC Chairman, Y.C. Deveshwar, to generate a new business plan for IBD that would make the division more profitable. There were many factors hindering India’s supply chain for agricultural goods, which would have to be dealt with if the new business model was to succeed. After a brainstorming session with ITC management in May of 1999 Sivakumar decided to implement digital technologies within the supply chain (The ITC eChoupal Initiative). This way the entire supply chain would...
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...duro viaje hasta el mandi. Asimismo, apenas pueden acceder a información y formación en técnicas agrícolas. El caso describe el uso de tecnologías de Internet para llegar hasta estos agricultores y, en concreto, examina un nuevo sistema llamado eChoupal, desarrollado por la empresa india ITC. La iniciativa eChoupal, comenzó en el estado central de Madhya Pradesh, Dahod, que estaba dedicado al cultivo del frijol de soya, los agricultores tenían generaciones realizando este tipo de cultivos. La población era de aproximadamente 3000 personas que vivían de manera humilde. Una práctica ancestral de los agricultores era reunirse durante la tarde-noche, para revisar como iban a organizarse para la siembra, la venta de los productos, etc., y a éstas reuniones se les llama Choupal. En las oficinas corporativas de ITC Limited´s “International Business Division (IBD) en Hyderabad, se analizaba el concepto de Choupal para su negocio de exportaciones, ya que el frijol de soya y sus derivados eran dos tercios del negocio de exportaciones de ITC. Actores Principales • Agricultores • ITC • Mandi • eChoupal • Sanchalack • Agentes comerciales Especificar la situación de la empresa En 1999 Sivakumar fue retado por el CI de ITC, Y.C. Deveshwar, para generar un nuevo plan de negocio para la división internacional. Sivakumar, analizó la situación y se percató de que los problemas eran precisamente en la cadena de suministro, tanto de la empresa ITS como de los agricultores...
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...ITC-eChoupal By Group 9: Pradeep Fernandes Shreya Shetty Jenniefer Dias Muneet Narang Navyesh Kambli P Contents: Choupal: Tradition About ITC Traditional supply chain Problems faced by traditional supply chain Problems faced by traditional practices: Discuss the business benefits of echoupal Initiative Discuss the success factors for the ITC Initiative “E-choupal” What are the changes bought in the supply chain through echoupal? Role of samyojak What is the role of technology in their supply chain? Identify Key strategic intentions of the initiative Choupal: Tradition A village of Dahod, Bhopal in India’s central state of Madhya Pradesh was dominated by soybean workers. Followed traditional way of harvesting crops and selling in the local market. The word choupal is a Hindi word which constituted an informal assembly or a meeting place where knowledge could be shared and captured. About ITC: It is a large agricultural export business unit which comprised of various commodities. Two-third of its business consisted of soybean and its derivatives. MP was said to be the “soyabowl” where farmers contributed 4 million of India’s 5 million tons of soybean crop. 80% - soymeal ( high protein extract for poultry) 20% - edible oil (domestic purpose) Current value chain ITC was lagging behind compared to other commodities. Y.C Deveshwar – ITC chairman S.Shivakumar the Chief Executive pondered the choupal concept...
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...ITC eChoupal case Farmers in rural communities of India relied on Department of Agriculture, government, universities, insurance companies etc. for various inputs such as weather, new and scientific farming practices and insurance coverage. There was an indirect link between farmers and manufacturer via input retailers who source from wholesalers. During harvest, farmers bring these produce to Mandis bearing their own transportation cost; where beans are auctioned to the traders and agents of the processing companies in an open outcry method. This system was flawed and always leaves the farmers in a disadvantageous position. ITC, one of India’s leading private company saw the opportunity to develop the concept of eChoupal. Its main objective is to re-engineer the procurement process of the sale of the farmer’s produce. ITC motivation to crating e Choupal is to revolutionize the agricultural sector and make it more technology driven. eChoupal (virtual market place) was introduced as an initiative to improve the supply chain by linking directly with farmers for procurement. It was also designed to play the role of a social gathering place, for the exchange of information as well as a place for e-commerce transactions. The eChoupals are operated by a sanchalak (operator), who also act as an ITC salesman. The process was simple as the farmer can take a sample to the kiosk, show the sanchalak who gives a quote. If the quote is deemed attractive by the farmer, he will accept and...
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...Overview The International Business Division (IBD) of ITC, whose main focus is agricultural commodities, was faced with the challenge of underperformance in sales when compared to other divisions, to include tobacco, paperboard, retail, hospitality and foods, within the company. The chief executive of the IBD was aware of the dilemma and was exploring his options to bring about a change to the current conditions. He was considering the concept of the present Choupal system wherein farmers gather at a meeting place at the end of each day to discuss daily happenings. Seeing that soybeans and its derivatives account for two-thirds of ITC’s agricultural export business, his focus was placed on that area. ITC’s supply chain for soybean was from local farmers to mandis to ITC’s factory and this process was significantly hampering the IBD’s performance. The supply chain was suffering from the lack of resources and a reliable channel for information flow, which resulted in a very unproductive cycle. In order to meet the company’s target, it had to identify ways in which a new method could be introduced so that the issues would be corrected. Technology was at the forefront but going that route also had its challenges. It would have been introduced in an environment that was underdeveloped and the general population was not exposed to computer technology. In India where ITC’s corporate offices are located, there is a rich culture and also the industry is governed by politics...
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...SCTL, July 2004 ITC's eChoupal Initiative Going Direct to the Farmer: ITC’s eChoupal initiative Ravi Anupindi Michigan Business School University of Michigan, Ann Arbor, MI 48105 (anupindi@umich.edu) SCTL Roundtable, July 2004 Background and Credits … Ø 1st year MBA project course at Michigan • 1st phase (Mar-Apr, `03): documentation of eChoupal concept [C.K. Prahalad and MBA students] • 2nd phase (Mar-Apr, `04): Rural retail [myself w/ MBA students] Ø Client site: • Mr. S. Sivakumar, CEO (International Business Division) • Several others … employees, farmers Ø Presentation material • S. Sivakumar (talk at Michigan at the Asia Business Conference, Feb. `04) • Report of the 1st phase MBA project • Dave Upton (HBS case / draft teaching note) 1 Anupindi / MBS SCTL, July 2004 ITC's eChoupal Initiative The New Indian Economy Ø Forex Reserves : $ 100 Bn Ø GDP Growth : 7% Ø Emergence of Indian MNCs Ø India as a Destination of Choice • For Outsourcing • Billion People Market Rural India: The Real India Ø 720 Million Consumers • Potentially a Huge Market è Greater than 70% of population; less than 30% GDP • Small Wallets Ø 156 Million Hectares of arable land in 36 rich & diverse agroecological zones • Potentially Food Factory to the World Ø Government(s) spend a lot of money in developmental activities • Results not consistent with the resources Indian Farmer as a producer & consumer … 2 Anupindi / MBS SCTL, July 2004 ...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...Developing a Rural Market e-hub The case study of e-Choupal experience of ITC B. Bowonder, Vinay Gupta and Amit Singh Abstract ICT has potential to make significant inroads in a traditional agrarian economy like India. Indian agro-sector has been exploiting the benefits to ICT. Innovative ICT application platforms are being created by private sector players in conjunction with local farmers. One such private initiative has been by ITC Ltd in the state of Madhya Pradesh. It has helped the farmers in many ways, such as developing of local leadership, shared ownership of the assets created in this initiative, access to the latest knowledge for the agro-sector, sustainable income levels and skill development for productivity improvement. This initiative from ITC[1] has become a benchmark today in the ICT initiatives in agro-sector. Several best practices can be learned from this initiative, namely: § ease of replicability and scalability § customization to meet the specific local needs and § organizational commitment. The success of e-choupal has heralded a new era in the Indian agro-sector. The work needs to be carried forward and replicated in the other untapped areas. Creating business channels that can create a win-win situation both business and farming community has enormous economies of scope. Once a channel is created it could be used for many products and services as shown in this case study. The main reasons for the success of the platform have been the involvement of...
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...KITES SUMMER INTERNSHIP Project Final Report ITC TM&D June 13, 2013 Authored by: Vaibhav Goel Contents Introduction and Project Title .....................................................................................................2 Acknowledgement ......................................................................................................................2 Deliverables and Scope Of Study .................................................................................................3 METHODOLGY .............................................................................................................................4 Roles and Responsibilities ...........................................................................................................4 Results and Achievements...........................................................................................................6 REPORTS AND STRUCTURE ..........................................................................................................8 Results ........................................................................................................................................9 Training Structure .....................................................................................................................10 Evaluation Structure..................................................................................................................11 Learning and Experience .......
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...ITC Weaknesses The company's original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death. To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone hold 70% of the tobacco market. Opportunities Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration. ITC is moving into new and emerging sectors including Information Technology, supporting business solutions. e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages. Take a look at eChoupal here http://www.itcportal.com/agri_exports/e-choupal_new.htm ITC leverages...
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...| | | ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includesInsignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol and Flake, Silk Cut and Duke. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands. ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur, Kolkata and Pune. These factories are known for their high levels of quality, contemporary technology and work environment. ITC Limited...
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...| E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. | Ms Smita Singh, Research Scholar, Department of Business Administration, University of Lucknow, Lucknow(M) 098395-01035e-mail: smita_saggi@rediffmail.com | Ms. Smita Singh Ms. Singh is a visiting faculty at Institute of Management Sciences, University of Lucknow and Distance Learning Centre for Punjab Technical University. She has been associated with academics for the past 2½ years and is enrolled for PhD research at the Department of Business Administration, University of Lucknow. She has worked with Wigan and Leigh College, Lucknow as Programme Manager and Academic Head, Management. A NTSE (NCERT) and HRD Ministry scholarship holder, she has qualified SLET in Anthropology. With over 8 years of industry experience, her current affiliation as Human Resource Consultant is with the Lucknow based project centre of Johns Hopkins University of Public Health and Hygiene, which she earlier served for 4 years as Manager HR and Research Associate. DECLARATION I hereby declare that the paper/case is original and is authored by me. The paper/case has not been published elsewhere ABSTRACT E-VOLUTION: TECHNOLOGY AS A DRIVER OF RURAL RETAIL IN INDIA – A CASE OF ITC’S FORAY INTO THE RURAL MARKET. 70 % of India's population lives in rural areas in its 627000 villages...
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...ITC Limited One of India’s Most Admired and Valuable Companies A Profile One of India’s most Admired and Valuable company - Market Capitalisation: over US$ 40 Billion A USD 8 Billion enterprise by Revenue - ~58% of Net Revenue from non-Cigarette segments Leading Fast Moving Consumer Goods (FMCG) marketer in India - Established several world-class brands in the last 10 years 10 year Value addition ~ Rs. 2.2 lakh crore (US$ 43 billion) with ~75% accruing to the Exchequer - Among the top tax payers in the country (Private sector) - Excise payments represent ~7% of Government of India’s total Excise collection ITC & its Group Companies employ over 31,000 people directly; supports livelihoods of ~6 million people A global exemplar in sustainable business practices - Only Company in the world of comparable dimensions to have achieved the global environmental distinction of being Carbon positive (10th Year), Water positive (13th Year) and Solid waste recycling positive (8th Year) 2 ITC Performance Track Record Rs. cr. 1995-96 2014-15 19-yr Cagr 95-96 to 14-15 Gross Revenue 5,115 49,965 12.7% Net Revenue 2,536 36,083 15.0% PBT 452 13,998 19.8% PAT 261 9,608 20.9% Capital Employed 1,886 32,420 16.1% ROCE % 28.4 43.4 Market Capitalisation 5,571 2,60,865 Total Shareholder Returns % 22.4% 24.3% Market Cap and TSR based on FY-end prices for FY96...
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...PESIT 2013 TENTS.aisnet.org : www.ijric.orgSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSSS APPLICTION OF MIS IN ITC LTD [Type the document subtitle] SURESH L I SEM, MBA D-SECTION ,ROLL NO:33 PESIT. CONTENTS Headings Page no 1.APPLICATION OF MIS IN ITC LTD 01 2. CONTENTS 02 3.ABSTRACT 03 4.ITC LTD PROFILE 04-05 5.OVERVIEW 06 6. COMPANY 07 7.VISION 08 8.WHY SAP? 09 9. IMPLEMENTATION 10 10.SOLUTION 11 11.BENEFITS 12 12.REFERENCES 13 ABSTRACT Management Information System (MIS) provides information for the managerial activities in an organization. The...
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