Imagine stepping into a world where scents carry stories, emotions, and spiritual connections. That's the magical realm of agarbatti, also known as incense sticks. These fragrant wonders have been a part of cultures for centuries, not only perfuming the air but also filling it with a sense of tranquillity and devotion. The journey of agarbatti is more than just a business venture; it's a venture into the aromatic heart of tradition, culture, and entrepreneurship. In this comprehensive guide, we'll explore the intricacies of starting and succeeding in the agarbatti business.
Agarbatti manufacturing can be driven very easily due to its low-cost raw material and production cost. One can start the Agarbatti business from home also. From understanding the essence of agarbatti to navigating the market landscape, setting up production, marketing, and more, we'll walk hand in hand through each step.
Market Research and Analysis for Agarbatti Business:
Before you take your first step, thorough market research is imperative. Gain a comprehensive understanding of the market landscape, including consumer preferences, existing competitors, and emerging trends.
Identify your target customer segments, which could range from individuals seeking a sensory experience to spiritual centres and wellness retreats looking to enhance their ambience.
Agarbatti or Dhoop Market is dominated by India globally. A few years back agarbatti industry has seen major deep and in the pandemic, it has seen a spike in the numbers. As per CAGR 8.8% growth is projected till 2028.
In 2022 7-8% growth was observed in the agarbatti business. It has a strong international market reach with a tough competitive market in India and China both.
Setting Up Your Workspace for your Agarbatti or Incense Stick Business:
The foundation of a successful Incense Stick making business lies in a well-organized and suitable workspace. Designate an area that adheres to safety regulations and hygiene standards. Ensure proper ventilation and lighting, and equip the workspace with essential tools and equipment required for the production process.
You need to register your Agarbatti Business like every business need to be registered as per government compliance. Required licenses and a well-adverse location for your manufacturing unit can lay a strong foundation.
Following are the key Agarbatti Business licenses you must acquire before starting your Incense Stick business.
- Company Registration
- GST Registration
- Trade License from local authority
- Factory License - Medium and large-scale manufacturing units need to take the NOC for setting up the factory.
- Pollution Certificate - Needs to be acquired from the state pollution board passing through the inspection of the manufacturing site.
- SSI Registration - SSI registration is only for the SSI unit but is not compulsory.
- EPF Registration - Applicable for more than 20 employees.
- ESI Registration - If your worker strength is more than 10 employees.
- Export License - If you are planning to export your final product then the export license is mandatory.
- MSME Registration - For getting loans under Agarbatti Making Project under Gramodyog Vikas Yojana (GVY) Scheme.
Raw Materials and Ingredients for Incense Stick Making:
The quality of your agarbattis hinges on the quality of the raw materials used. Source premium-grade materials, such as bamboo sticks, aromatic compounds, charcoal, and binding agents. Establish a reliable supply chain to guarantee a consistent flow of high-quality materials, which will directly impact the final product's aroma, appearance, and burn time.
Following are the key raw materials for Incense Stick Making:
- Natural aromatic oil
- Bamboo sticks
- Charcoal Powder
- Aromatic Ingredients
- Colour Powder
- Packing Materials
- Perfumes (fragrance)
- Gum Powder
Agarbatti Making Process:
For Agarbatti making you need machines that ease your manual work and give your desired daily output. Agarbatti manufacturing machine cost you between INR 50000 - INR 70000 and goes upto INR 1.25-1.5 Lakh. Manual machines cost approximately INR 15-20 thousand.
Mixing: Begin by preparing the aromatic paste. Carefully blend aromatic compounds, charcoal, and binding agents in precise proportions. This paste serves as the foundation of your agarbatti's fragrance and quality.
Rolling: Coat bamboo sticks evenly with the aromatic paste using specialized moulds. This step requires precision to ensure uniformity in the thickness and fragrance distribution of the agarbattis.
Drying: Allow the coated sticks to naturally air dry or use drying machines. Proper drying is essential to prevent mould growth, maintain fragrance potency, and ensure the sticks' structural integrity.
Packaging: Once dried, sort the agarbattis, bundle them thoughtfully, and package them attractively. Packaging plays a pivotal role in creating a lasting impression and communicating the essence of your brand.
Quality Control Measures Agarbatti Manufacturing Business:
Maintaining consistent product quality is paramount. Implement rigorous quality control measures at each stage of the production process. Conduct thorough fragrance and burn tests, inspect the appearance of the agarbattis, and discard any substandard products.
Packaging and Branding for Incense Sticks:
Craft packaging that resonates with your target audience and encapsulates the essence of your brand. Choose eco-friendly materials that align with the holistic and spiritual nature of agarbattis. Your packaging should evoke a sense of tranquillity and well-being while reflecting the premium quality of your products.
Marketing and Promotion Strategies - Agarbatti Busines:
You have done all the necessary processes and started the production of the Agarbatti, but now it is time to showcase your product to end customers and attract your local market. Packaging is one of the aspects but moreover, a proper reach-out or launch strategy can help your product to get acceptance from the market.
You can opt. Following are the few marketing strategies that will help your product to grow and get placed in this highly competitive business niche.
Product Sampling: Free Sampling can help you to understand how the end-users are accepting your product.
Point of Purchase: Design attractive POP materials for your local stores which can attract consumers and products will start getting sold.
Aggregator Tie-up: Platform like Flipkart, and Amazon is one of the leading platforms to take your business to new heights.
Website Creation: Develop a user-friendly website showcasing your product range, production process, and brand story. Optimize it for search engines to enhance its online visibility.
Social Media Engagement: Leverage platforms like Instagram, Facebook, and Pinterest to share visually appealing content, including product images, customer testimonials, and informative posts about the benefits of agarbattis.
Collaborations: Partner with local boutiques, wellness centres, and yoga studios to expand your distribution network and reach a wider audience.
Government loan for agarbatti business:
Under Agarbatti Making Project under Gramodyog Vikas Yojana (GVY) Scheme is a comprehensive effort to revive the Agarbatti industry within the country. By focusing on training, providing essential resources, and establishing support mechanisms, the scheme not only boosts local production but also empowers artisans, creating sustainable employment opportunities.
Through such initiatives, the scheme contributes to the overall welfare and progress of the Agarbatti industry and its stakeholders. The scheme aims to offer support by providing Agarbatti manufacturing machines and essential raw materials
Agarbatti Business Profit Margin:
Indian Agarbatti industry market is somewhere between INR 10-12 Thousand Crore and in future, it will experience 15% growth in coming years in comparison with previous years where we have seen only 3-6% growth.
So it is a highly competitive industry and a small manufacturer can earn a profit of around INR 60000-75000.
For example, if we take 100kg. Production (roughly 1200-1300 sticks) per day then monthly production would be 3,000 kg. Manufacturing cost per kg. would be approx. INR 30, then the total cost is INR 90,000-1,00,000. Per kg. the selling price is INR 100 then the tola gross revenue is INR 3 Lakh and if we deduct INR 1,00,000 from the gross revenue then INR 2,00,000 is profit before other OPEX & CAPEX. So more or less INR 75,000-1,00,000 would be the net profit for small manufacturers.
So it is a very high earning lucrative business which a business owner can start from his/her home also.
Scaling Your Agarbatti Business:
As demand for your agarbattis grows, consider these strategies to scale your business:
Automation: Invest in automated machinery to streamline production processes, increase efficiency, and meet higher demand without compromising quality.
Product Innovation: Continuously experiment with new fragrance variations to cater to diverse preferences and attract new customers.
Distribution Channels: Collaborate with wholesalers and retailers to ensure wider product availability across different regions.
Agarbatti Business is a highly competitive business with high-profit margins and if you are planning to start your own agarbatti manufacturing business then our guide will help you understand the agarbatti market. With determination and an unwavering focus on excellence, your agarbatti-making business has the potential to flourish and become a sought-after source of aromatic bliss in the market.
FAQs (Frequently Asked Questions):
Is Agarbatti business profitable?
Yes, A small manufacturer can earn upto INR 60,000- 1,00,000 monthly gross profit. If you can scale your business then it would go up further.
How much can I earn from the Agarbatti business?
So it is a highly competitive industry and a manufacturer can earn a profit of around INR 60000-75000.
How many sticks is 1KG Agarbatti?
Typically, 1 kilogram of Agarbatti may contain around 1200 to 1400 sticks, depending on the thickness and length of the sticks.
What is the future of agarbatti?
15% growth prediction for Agarbatti Industry. Agarbatti market is around INR 10,000 -12,000 corers market.
What is the license requirement for Agarbatti Business?
Many licensing required for Agarbatti Business, Here are some key license that an Agarbatti Manufacturer need to have before starting his/her business.
Trade License from local authority
Factory License - Medium and large-scale manufacturing units need to take the NOC for setting up the factory.
Pollution Certificate - Needs to be acquired from the state pollution board passing through the inspection of the manufacturing site.
SSI Registration - SSI registration is only for the SSI unit but is not compulsory.
EPF Registration - Applicable for more than 20 employee
ESI Registration - If your worker strength is more than 10 employees.
Export License - If you are planning to export your final product then the export license is mandatory.
MSME Registration - For getting loans under Agarbatti Making Project under Gramodyog Vikas Yojana (GVY) Scheme