Agarbatti Making business has huge market potential as a manufacturing business in India because its demand is high at all time and in a festival season, it goes higher.
The burning of agarbatti in religious or social functions and in festivals has been adept in India as a fragrance creating substance has insecticidal and antiseptic properties.
Incense Stick is worldwide known as “Incense Sticks” termed as a thin piece of bamboo sticks coated with aromatic powder or paste of fragrance of natural ingredients like flowers or some kind of artificial chemicals.
Generally, the length of the incense stick is almost about 8 to 12. The burning time of an incense stick is varying from 30 minutes to 2 hours according to quality and size.
Agarbatti Business Details
Here are agarbatti business details; Incense sticks or Agarbatti making company is quite lucrative small scale company in India that you may begin with very little investment. The process of agarbatti making is quite straightforward and may be achieved using machines.
If you don’t need to purchase buying machines then you may opt for a manual handmade agarbatti manufacturing unit but machines that make it simpler and produce top quality agarbatti in a limited time. Within this column, I will share advice about the best way best to begin an agarbatti production unit and the way it is possible to make a profit from a very simple enterprise. Below is a business plan sample that you can follow to begin your own production unit.
#1 Agarbatti/Incense Stick Making Business Plan
Agrabatti business is a profitable manufacturing business. And with some small equipment and machine, you can start an agarbatti business even at home.
It is a traditional product & is an essential item in every household, temples, etc.
Agarbatti Business is one of the traditional industries in India.
The scope of the agarbatti making business is depend upon individual production and capacity of agarbatti making plant the market demand of the agarbatti is high at all time and it is always increased during the festival season
Now India is exporting idea of incense stick to the other Asian county like China and Japan in the year 2017 and 18 India had exported over Rs 500 corer of Incense Sticks to other countries, about more than 90 foreign counties are using agarbatti
Therefore the foreign demand make this Incense Stick making business as export-oriented manufacturing industry, low-level technology is involved in the making of, therefore, the initial investment of agarbatti making is low and in return you can easily make Rs 500 to rs600 from each machine production (Rs25 to 30 per Kg of production)
Initially, the GST is charged at 12%, but now it has been reduced to 5%.
#2 License for Agarbatti Making Business
Agarbatti Business License
If you are wondering how to get an agarbatti business license don’t worry here we have listed all agarbatti business license that is required to start the agarbatti business, the requirement for an agarbatti business license are may vary from state to state, therefore it is recommended to read the state rule regarding to agarbatti business license.
- Company Registration: the first step to start your low capital business is to register your company as a Proprietorship or ROC register of companies
- GST Registration: GST rule it is mandatory for every business holder to get GST number for good services
- EPF Registration: this registration only required if your company have more than 20 employees or manufacturing unit
- ESI Registration: employee state insurance is required if you have more than 10 employees
- Trade License: you have to apply for trade license from local authorities
- SSI Registration: register for SSI registration for being SSI unit it is not compulsory
- Pollution Certificate: the inspection of your industries is conducted by State Pollution Control Board them they allow you to start business
- Factory License: Commercial large-scale manufacturing units need to have Factory License and NOC.
#3 Raw Material for Agarbatti Making Business
The raw material required to Incense Stick making is easily available in Indian market at a very low cost you just have to search or visit the agarbatti making unit or raw material supplier the quantity of material depends on the production need
The base material of the Incense Stick is bamboo which is also easily available in Indian market, which comes from China and Vietnam and cost you around Rs 120 per kg, you can also produce sticks to your own by using sticks making machines
List Of Raw Material Required For Incense Stick Making:
Aromatic Ingredients (Oils) Both Natural As Well As Chemical: use to add aroma in agarbatti
Bamboo Sticks: 8″ to 12″ inches of bamboo sticks are required
Raw Bamboo Sticks: if you are manufacturing bamboo sticks to your own you have to buy raw bamboo sticks as raw material for bamboo sticks making
Packing Materials: packaging material should be airtight which lock the fragrance
Different Color Powder: for adding a different color in Incense Stick to make it attractive
Gum Powder (Sticky Powder)
Oil Of Sandalwood
Adding Fragrance: The adding fragrance is another manufacturing step. Because many agarbatti making industries sell raw agarbatti without adding the perfume to the industries that add perfume for fragrance
You can add perfume on your own you just have to research on new fragrance with the help of market study.
#4 Area required to start Agarbatti making business (location)
You can start Agarbatti making business from your Home or any place it does not require the specific area for setup but make sure that the raw material suppliers should be near to your workstation
The area space depends upon the number of the machine you installed in your area.
Division of Agarbatti Making Business
- Raw material supplier unit
- Bamboo stick supplier unit (this unit will eliminate if you are making bamboo sticks at your own)
- Incense Stick making unit
- Perfume adding unit
The area location is an important factor during area selection because this business is basically divided into four parts
#5 Agarbatti Making Machines.
Machines are the backbone of your business there are so many companies are available who sell different types of machinery for agarbatti making but you have select one reliable machine according to production and capital of your business
Machines need a proper maintenance so make sure that the repairing or maintenance service providers are near to your area. Most of agarbatti making machine provider are from Gujarat so you can contact them
There are several types of Incense Stick making machines are present in the market those are manual agarbatti making machine, automatic agarbatti making the machine and high-speed automatic agarbatti making the machine
Apart from these, there are other machines that make your Incense Stick making business, even more, advance using new technology; those machines are dryer machine and powder mixer machine
Manual Agarbatti Making Machine:
Manually operated machines are available in single or double pedals types which are easy to operate for high production in low cost.
Due to the pedal mechanism, it does not require any kind of electricity you can run it manually by using pedals.
manual agarbatti machines are available at a very affordable price
Automatic Agarbatti Making Machine:
If you are looking for high volume production with some latest technology then automatic agarbatti making machine is a good choice for you, automatic Incense Stick making machine can produce 160 to 200 sticks per minute
You can also produce square shape Agrbatti by using this machine, automatic Incense Stick making machine is available in an attractive pattern, design, shape, and size as per your requirement
High-Speed Automatic Agarbatti Making Machine:
High-speed automatic agarbatti making machine is a fully automatic machine that required less manpower, the production rate of high-speed automatic Incense Stick making machine is 300 to 450 sticks per minute
The production length of sticks is adjustable you can set your machine from 8’ inches to 12’ inches
Cost of high-speed automatic agarbatti making machine
If manufacturing area have humidity in the atmosphere then you have to buy dryer machine for dry your raw agarbatti, dryer machine is also beneficial in the rainy season
Powder Mixer Machine:
For a uniform mixture of substances, powder mixer is helpful by which you can get the exact amount of dry or wet powder mixture this machine is custom made supplier will make it according to your production capacity
The production capacity of the powder mixer machine is 10 to 20 kg per minute
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#6 Agarbatti Manufacturing Process
There are two types of agarbatti are to be manufactured on is masala Incense Stick (raw agarbatti) another is Incense Incense Stick.
The agarbatti manufacturing process for both are same only the difference is that the Incense Stick having the fragrance oil or aroma in Incense agarbatti.
Step 1.Preparation of Mixture
This is very important task of agarbatti manufacturing process because the right mixture leads to good quality agarbatti if the mixture is not in right proportion agarbatti will not burn
For Incense Stick making, you need to add powders of charcoal, Gigatu, White chips, etc with water to have a semi-solid paste.
If you have to learn the process of mixture making for agarbatti you can contact machine technician or professionals
Step 2.Loading Mixture in Machine
After the preparation of semi-solid mixture, load it into agarbatti making a machine with bamboo sticks.
With the help of agarbatti making a machine, you can make 10 to 12 kg of raw agarbatti in one hour
You can make Incense Stick by taken a mixture on a wooden plank and applied to sticks by rolling with hands.
Step 3.Collect Final Product (Agarbatti)
One needs to collect the raw agarbatti from the machine after processing and send them for next process of drying up
Step 4.Keep It for Dry
The raw agarbatti is wet you need to dry them if your manufacturing unit does having the sunlight you can place the Incense Stick into the sunlight to drying up
If you don’t have the direct sunlight in the manufacturing unit you need to buy dryer machine, which helps to dry the raw agarbatti
Dryer machine is very useful in Monsoon or rainy season and winter season
You can sell the raw agarbatti (masala agarbatti) but if you want to add aroma in it you need to add fragrance oil in raw Incense Stick
Step 5.Adding Fragrance
Incense agarbatti making is a separate branch in agarbatti making business.
The raw agarbatti manufactures does not add fragrance, they sell their Incense Stick to the industry who add the fragrance.
you can also sell your raw agarbatti to those company
But if you want to add the perfume in it you need to search for the new fragrance with the help of marketing and research
Raw sticks are dipped in suitable fragrance oil with diethyl phthalate (D.E.P.) and then keep it for dry
Step 6.Packaging of Agarbatti
Packing is very important task of agarbatti manufacturing process.
Agarbatti packing you will need high-quality packing bags and packaging machine.
you can use the packaging bag for the promoting your brand by printing your brand name on it with other users friendly information
You can use cartoon box for packaging purpose so you can attract the customers.
#7 How to sell my Agarbatti
Once you have done with the manufacturing it is obvious you will have a question that how to sell my agarbatti.
So here we give you some marketing strategy that helps you with your question about how to sell my agarbatti?
Perfume adding industries:
If you are producing a raw agarbatti then you need to sell it to the perfume adding industry
It is difficult to sell the raw Incense Stick in the market; therefore, it is advisable to sell the raw agarbatti to the fragrance adding industry
Fragrance adding industry are add the perfume to the raw material and then sell it to the customers
This is the new age of the digital marketing. So you can sell agarbatti online, the online market can be a huge market for your agarbatti making business.
And an easier way to sell your agarbatti by presenting some photos and description about agarbatti
You can create your own website where you can sell and promote your Incense Stick brand
you can tie-up with the other hosting websites that helps to sell your product
You can sell your agarbatti in the local market; you can offer the free agarbatti sample to the local market seller
And tell them to introduce your Incense Stick bran to the customers. If the customers like your agarbatti them they automatically look for agarbatti that you produced.
#8. Agarbatti Profit Margin
If we look at agarbatti profit margin; Agarbatti making is quite a profitable company and you may readily earn Rs 500 — 700 as again from 1 machine regular. However, one machine won’t provide your great income at the close of the month, you need to begin using three or four machines minimal to observe some fantastic yields.
Raw agarbatti will offer your benefit of Rs10/kg. On the flip side, scented agarbatti can provide you more profit i.e Rs 25 — 30 per pound approx. It is dependent upon your branding and promotion plan.
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