The Hindu Business Line : ITC to lay more products on e-choupal

IN a low-key but major initiative, ITC is entering the field of horticulture, aquaculture, spices and salt through its Secunderabad-based agri business division. The division has decided to spread its e-choupal procurement and marketing network to West Bengal, Kerala, Maharashtra and Rajasthan for the new items.

Mr S. Sivakumar, chief executive of agri business division of ITC, told Business Line today that for Kerala, spices would come under the e-choupal system. In the case of Maharashtra horticulture items and oilseeds including oils have been chosen as the products for e-choupal platform. For West Bengal, the initiative would be in the field of aquaculture and for Rajasthan, the commodities would be wheat and oilseeds, he added.

"Aquaculture would be mainly for prawns and meant for exports only," Mr Sivakumar added. The new products will hit the rural market, except for prawns, during the second half of 2003-04. The company will soon decide on the investments to be made for the new products.

The company was also set to launch branded and packaged salt through rural marketing platform in December, Mr Sivakumar informed. It has already launched its first product - a branded vegetable oil called `choupal' - in late September for the rural market.

ITC's e-choupal project currently covers over 6,000 villages in Uttar Pradesh, Madhya Pradesh, Karnataka and Andhra Pradesh.

The company also has plans to market wheat flour and sugar through the choupal network. It has begun distribution of life insurance products of ICICI Prudential through its rural network in 100 villages of Madhya Pradesh on a pilot basis.

"After the six-month pilot project, the insurance products of LIC and four private players will be distributed under the system. The pilot project will continue till April-May 2003, after which the insurance products will be on offer to more villages. By the end of the next kharif season, the target is to reach the insurance products to 3,000 villages," Mr Sivakumar said.

ITC is receiving a "reference fee" from ICICI-Pru for the businesses generated out of the pilot project. A revenue model would finally be worked out after the pilot project is completed, either on a commission or brokerage basis, Mr Sivakumar added.

Mr Sivakumar said that ITC expected a 60 per cent growth for the agri business division during 2002-03 at Rs 1,600 crore against Rs 1,000 crore recorded in 2001-02.

Exports of non-basmati rice are expected to substantially buoy up the turnover this year.

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