Rural Business Hubs
While browsing internet just happened to come across the "Rural Business Hubs(RBH)" Concepts.
Prima facie of it it is very appealing concept. Barring ITC e-Choupal the initiative is pioneering one. It envisions rural development by creating Sustainable Business Models based on production of value added items.
RBH concept emphasizes shift from Charity or Philanthropy based rural upliftment plans to purely business-interest driven rural development plan. Former has yielded little results after 10 Five year plants and more than 200,000 Crores of cumulative budget outlay for rural development projects. the case study of ITC Choupal seems to build a good case for Business interest driven rural development.
Indian consumption patterns indicate 50% of Gross national retail consumption takes place in Rural India. In value terms annual rural retail opportunity turns out to be USD 175 bn. Retail majors are bound to tap this opportunity providing better access and serviceability for rural markets. As the example of ITC Choupal indicates, the retail marts shall also serve as a buying stations for Agro-products/Value added items. Retailers direct buying from farmers shall create price pressure on commodities. Both farmers as well as consumers aer expected to get a better price deal through elimination of multiple intermediaries. This business opportunity alone is set to change the face of rural India in coming years!!
Prima facie of it it is very appealing concept. Barring ITC e-Choupal the initiative is pioneering one. It envisions rural development by creating Sustainable Business Models based on production of value added items.
RBH concept emphasizes shift from Charity or Philanthropy based rural upliftment plans to purely business-interest driven rural development plan. Former has yielded little results after 10 Five year plants and more than 200,000 Crores of cumulative budget outlay for rural development projects. the case study of ITC Choupal seems to build a good case for Business interest driven rural development.
Indian consumption patterns indicate 50% of Gross national retail consumption takes place in Rural India. In value terms annual rural retail opportunity turns out to be USD 175 bn. Retail majors are bound to tap this opportunity providing better access and serviceability for rural markets. As the example of ITC Choupal indicates, the retail marts shall also serve as a buying stations for Agro-products/Value added items. Retailers direct buying from farmers shall create price pressure on commodities. Both farmers as well as consumers aer expected to get a better price deal through elimination of multiple intermediaries. This business opportunity alone is set to change the face of rural India in coming years!!
posted by Abhishek at 4:34 AM
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