How to launch a agarbatti making business in 2022 ?
Agarbatti Marketing Business
As you sit in your room, you seem anxious, and you do not know why. But calmness takes over you as soon as you experience the warmth of the smell of an agarbatti. The heavenly smell that you recall in temples or in the evening when your parents are praying. Agarbatti is an integral part of many households. Its aroma creates an ambience of purity and calmness, one that is almost indescribable by words.
Furthemore according to studies, incense's essential oils are supposed to help clear nasal obstructions and enhance the air quality around you, simulating the effects of aromatherapy. As a result, alternative healing institutions save it in particular and use it frequently.
Agarbatti is a Hindi word that is commonly used to refer to "Incense Sticks" throughout the world. As the name suggests, they are long, thin sticks of bamboo that range in length from 8 to 12 inches and are covered in an aromatic paste made from natural concentrates of scented flowers or other notable fragrant wood species like sandalwood.
This article aims to give an insight into all the crucial information regarding the Agarbatti Marketing Business.
What's the potential Market Size for Agarbatti business ?
In 2011–12, the Indian agarbatti and dhoop markets were worth more than INR 3000 crores. In the past five years, the market has experienced rapid growth, and in 2022–2023, it is anticipated to achieve a market size by volume of more than 34,000 sticks of agarbatti and dhoop.
Furthermore, the market is anticipated to grow at a CAGR of 9.1% from 2022 to 2027.
Agarbatti Marketing Business Plan
The making of agarbatti is a very lucrative industry. Additionally, one can start this manufacturing business even from home with a minimal amount of equipment and machinery.
The size of the agarbatti manufacturing industry depends on both individual capability and production capacity. Additionally, it is dependent on the agarbatti's market demand. During the holiday season, there is a strong and rising demand.
Agarbattis can be exported to other Asian nations in addition to Indian markets. In 2017 and 2018, India shipped more than 500 crores of incense sticks to several Asian nations, including China and Japan. These incense sticks are used in over 90 nations, so there is always a big demand for them.
Exporting agarbatti may be the best choice because of the constant and strong overseas demand for it. This manufacturing sector is focused on exports and calls for low-grade technologies. As a result, the initial investment needed to start creating agarbattis is fairly minimal, and one can make about Rs. 500 for every 100 kg of 20 kg of production produced by a machine, or about Rs. 25 per kilogramme produced and sold.
Agarbattis initially had a 12 percent GST; which was later lowered to 5 percent.
It is crucial to write a business strategy before launching any business. The essence of the firm is described in a business plan, which also aids in obtaining finance from financial institutions, government subsidies, business loans, term loans, loans from NBFCs or banks in the public and private sector.
The background and nature of the company, total budget, working capital investment, information on raw materials and products purchased, existing staff or new employee details, marketing or advertising strategies, loan information (if any), business credit report, information on real estate, premises, or other areas to be used for business purposes, etc, are all to be prepared in detail in the initial stage of plan making.
Agarbatti Making Process
The primary component of an agarbatti or incense is a bamboo stick and paste, which is frequently made of charcoal powder or wood powder and joss/jiggit/gum/tabu powder, an adhesive manufactured from the bark of litsea glutinosa and other trees), and the fragrant ingredients—traditionally a powder of mixed pulverised ingredients.
Agarbatti Making Formula
To make a paste, water is added, a little amount of saltpetre (potassium nitrate) is added to help the substance burn evenly, and the mixture is processed in some way before being sold for burning. This form is known as the agarbatti, or incense stick, in India and is made up of an incense mixture that has been spread out on a bamboo stick.
| Raw Materials Needed |
| Bamboo Sticks |
| Aromatic Chemicals |
| Essential Oils (Sandalwood) |
| Gelatin Papers |
| Perfumes |
| Sawdust |
| White Chips |
| Gigatu |
| Packing Materials |
| Charcoal, Crude, Jikit, and Nargis Power |
How to do Marketing and Branding for Agarbatti Making Business
After having created a marketing plan, it is important to set in stone the basic ideals of the company, including a logo for your company. It is crucial to spend money on the business logo to aid potential customers in recognising your brand. The logo should be visually appealing. This step will further help in enhancing brand awareness.
Creating high-quality goods can guarantee both repeat business and new clientele. Using high-quality bamboo sticks or genuine perfumes on incense sticks to improve the product will help attract more customers to the company. Trying to save money by purchasing low-cost raw materials won't help the firm grow.
As market trends and consumer preferences change, the product offering should too. To draw potential customers' attention, periodically offer a new product line. This will assist one in staying current with industry developments as well. Having a wide selection of products can help the company stay one step ahead and increase sales by introducing new scents or services.
Attending trade shows and other cultural events can help in enhancing communication with consumers. Furthermore, many executives attend trade shows and business events to advertise their companies. This provides a perfect opportunity to promote products and services that the business offers.
Attracting customers becomes easier if the business offers multiple products based on the customers’ preferences and needs. Offering sales can also help in popularising a brand and its products.
Sales can also be increased by advertising them on social media sites such as Facebook, Instagram, and Twitter, which boast a huge variety of users.
Documents mandatory for Agarbatti Making
Since different states have different licensing requirements for agarbatti businesses, owners must read the rules and regulations that apply to their state or the state where the new business will be launched. A list of the licences needed to launch an agarbatti business is provided below.
| Documents | Description |
| Company Registration | Getting a company registered with the ROC is the first step in starting an agarbatti business. |
| EPF Registration | If a firm, business, or manufacturing unit employs more than 20 people, EPF registration is necessary. |
| ESI Registration | If a company has more than 10 employees, Employee State Insurance (ESI) registration is necessary. |
| Factory Licence | The Factory Licence and NOC are necessary if business owners intend to establish a large-scale, for-profit manufacturing facility. |
| GST Registration | Every business owner is required to register since getting a GST number for goods and services is essential. |
| Pollution Certificate | Since the State Pollution Control Board conducts a site inspection and, if satisfied, grants authorization to start a business, it is one of the most crucial certificates to receive from them. |
| SSI Registration | Even if the company or production unit does not fall within the SSI, obtaining a Small Scale Industries Registration is required. |
| Trade Licence | In India, business owners and traders must have trade licences issued by the regional government in order to conduct any type of trade. States have different requirements for registering and validating trade licences. |
Machines required for Agarbatti Making
There are no shortages in the number or types of machinery available to make agarbatti. The determinant, however, remains the amount of labour and money that will go into the making process.
| Types of Machinery | Description |
| Manual Agarbatti Machines | In order to obtain high production at a reasonable price, manually driven machines can be purchased in either single pedal or double pedal varieties. |
| Automatic Agarbatti Machines | One should choose these automatic agarbatti makers for big volume manufacturing because they use the most recent technology to create 160 to 200 sticks per minute on average. With the aid of these tools, one can also create Agarbatti in a square shape. According to the needs of the customer, these automatic incense stick makers are available in a variety of appealing styles, patterns, sizes, and forms. |
| High-Speed Automatic Agarbatti Making Machine | Because they are totally automatic, high-speed agarbatti-making machines require less labour. These devices have a production rate of 300 to 450 sticks per minute. These devices allow for the manufacturing of incense sticks of various lengths. One can adjust their machine between 8 and 12 inches. |
| Dryer Machine | One needs to purchase a dryer machine to dry out raw agarbatti if the region where incense sticks are made is humid. Additionally useful in the rainy season is this dryer appliance. |
| Powder Mixer Machine | A powder mixer machine is particularly useful for creating a homogeneous mixture of the ingredients used to make agarbattis because it can mix the precise quantity of wet or dry powder mixture. According to the customer's manufacturing capacity, the supplier customises this machine. 10 to 20 kg of mixture can be mixed by the powder mixer machine every minute. |
Investment Required for agarbatti making business plant
Best Suppliers for Agarbatti Making Machinery
Agarbatti Making Machinery is one of the most crucial elements in the Agarbatti making business. There are numerous suppliers who provide well-created machinery for the process.
| Company Name | Location |
| Agarbati making machine suppliers in Surat | Soham Industrial Machinery Ltd.,Surat, India |
| Agarbati making machine suppliers in Rajkot | Shyam Incense Stick,Rajkot, India |
| Agarbati making machine suppliers in Nagur | Prashant Bamboo Machines,Nagur, India |
| Agarbati making machine suppliers in Bareilly | S.G. Engineer,Bareilly, India |
| Agarbati making machine suppliers in Ahmedabad | Fire Tech Engineers,Ahmedabad, india |
| Agarbati making machine suppliers in Ahmedabad | Nishan Products,Ahmedabad, India |
| Agarbati making machine suppliers in Coimbatore | Team Engineering,Coimbatore, India |
| Agarbati making machine suppliers in Rajkot | Shree Hari Traders,Rajkot, India |
| Agarbati making machine suppliers in Bengaluru | Kalpesh Agarbatti Works,Bengaluru, India |
| Agarbati making machine suppliers in Ahmedabad | Harikrishna Engineering,Ahmedabad, India |
Profit Margin in agarbatti making business
The raw agarbatti production profit margin is approximately Rs. 10 per kg. This profit margin is based on real data from the north of India, and it can be different in the south. Given that a single high speed automatic machine can create 100 kg of raw agarbatti in 10 hours, a profit of Rs 10 per kilogramme is highly alluring.