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ITC jumps 11% in four days amid buzz of likely tieup with Amazon
14-Oct-21   15:23 Hrs IST

Shares of ITC have risen 10.60% in four sessions from its recent closing low of Rs 231.65 on 8 October 2021.

The stock hit a 52-week high of Rs 261.80 today. It has surged 56.79% from its 52-week low of Rs 163.40 hit on 29 October 2020. In the past one month, the stock has risen 18.65 % as against 5.30% rise in the Sensex.

e-Choupal is an initiative of ITC to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns.

e-Choupal tackles the challenges posed by Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of intermediaries. The programme installs computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information. The system saves procurement costs for ITC.

While the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC benefits from the lower net cost of procurement (despite offering better prices to the farmer) having eliminated costs in the supply chain that do not add value.

ITC is engaged in the marketing of fast-moving consumer goods (FMGC). The firm operates through four segments: FMCG; hotels; paperboards, paper and packaging, and agri business. ITC is the market leader in cigarettes in India. The conglomerate reported 28.6% rise in standalone net profit to Rs 3,013.49 crore on 37.3% rise in net sales to Rs 12,142.43 crore in Q1 FY22 over Q1 FY21.

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