• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

Mr Y.C. Deveshwar, Chairman of ITC Ltd, addressing a conference on Rural Marketing and Communications in the Capital on Thursday.

NEW DELHI, April 24

TOBACCO major ITC Ltd plans to create a Trust through which business houses, both in the private and public sector, can help provide a range of critical services to Indian farmers.

Announcing this during his keynote address at a FICCI conference on `rural marketing and communications' here on Thursday, the ITC Chairman, Mr Y.C. Deveshwar, said corporate help for the farm sector is only in enlightened self-interest, because if rural India does not grow or have good incomes, the dream of industrial growth will be shortlived. "The cake has to be enlarged; let's emphasise that whilst doing what you are doing on behalf of your shareholders," he said.

Mr Deveshwar pointed out that to maintain the growth rates in India's rural economy and fuel an eight per cent rise in GDP, it was imperative for corporates to focus on increasing the rural pie rather than indulge in competitive marketing to gain a larger share of the same pie.

He urged all stakeholders in the rural economy, whether manufacturers of tractors or pesticides or insurance service providers, to enlighten themselves. "We have to go the extra mile in ensuring that we participate in the actual rural development process," he said. The empowered farmer with disposable income is more likely to purchase goods and service, which will then have a multiplier effect.

Mr Deveshwar said ITC's `e-choupal' initiative was already reaching out to 11,000 villages with the establishment of nearly 2,000 `e-choupal' kiosks. ITC's vision was to cover at least one lakh villages or one-sixth of rural India under the network over the next five years. This would require an investment of more than Rs 1,000 crore.

Mr Deveshwar said ITC was prepared to share the communication infrastructure that it has created through the `e-choupal' project with those corporates who wished to participate in its rural economic development initiative.

ITC's Chairman also urged the Government to incentivise investments in rural India like it does for exports so that rural productivity is assured.

Delivering the welcome address at the conference, which has been supported by the specialist group, The Rural Network, Mr A.C. Muthiah, President, FICCI, highlighted the need to generate superior data on rural marketing systems — haats, melas, mandis — and on rural consumption patterns. He said there is a need to learn how best to use rural market places and said corporates need to place emphasis on retailers directly as a powerful medium, rather than depending on wholesalers for distribution in rural markets.

Mr Muthiah said corporates need to undertake systematic psychographic analyses to arrive at the appropriate marketing mix for rural markets.

Article E-Mail :: Comment :: Syndication

Stories in this Section
CavinKare to relaunch Indica — New hair care brand on the anvil

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line