E-Choupal Itc

E-Choupal in India is a demonstration of how the bottom of the pyramid can be tapped for profitable growth along with social transformation.

The paper attempts to apply the well known economic concepts of demand and supply to the

initiative of ITC's International Business Division called eChoupal. eChoupal is a Rural

Transformation Business Model for India in the agricultural sector which is also diversifying to the

aqua farming area. The paper gives an economic perspective to the company's initiative using the

financial data and business model as the basis. The analysis is an application of economic

concepts learned in the subject to this innovative business model and it reveals how different steps

taken as part of the initiative affect the economic health of the parties involved and the society in

general. Throughout the case the demand shall be analyzed from two perspectives – Farmer as

the firm producing agricultural output (example Soybeans), ITC – Agri-Business Division as a firm

processing and collecting the output from the farmer and selling it to International market and

additionally using the farmer base(supply chain) as a market to sell processed goods and services.

Agricultural self sufficiency was achieved after green revolution in India and also the export

situation improved. Yet most Indian farmers continue to remain poor. The reasons include

inefficient government regulation and small landholdings