Jayanta Mallick
Kolkata, Nov. 6
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 case of Maharashtra horticulture items and oil seeds
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 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.
