Project report for Agarbatti -Incense sticks

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Introduction

India is a vast country and the Indian people follow various religions, speak different languages, and follow different customs and traditions. Despite this diversity, one thing that is common among all Indians is they are all deeply religious and practice their religious activities on daily basis. So depending upon their belief, practice method and convenience, almost all the people use any one or two from agarbatti(incense sticks), candles, or Kapoor(camphor tablets). This itself speaks volumes of the paramount importance Agarbatti, candles and Kapoor has. Besides, they are also used as air- freshener, and illumination. 
Agarbatti and other preparations which operate by burning (candles, Kapoor) Industry is a real employment generator and is capable of employing the weaker sections of both the urban and rural populace. A salient feature of Agarbatti and other preparations which operate by burning(candles, Kapoor) Industry is that the workers can work part-time. This largely helps them to supplement their recent family income. Agarbatti and other preparations which operate by burning (candles, Kapoor) have become a significant foreign exchange earner because of its demand in overseas markets.
Despite the challenge of cheaper products from China, Taiwan, and other southeast Asian countries, India has managed to export over Rs 400 crore worth of incense sticks in 2016-17, which is almost 10 percent of the global incense market in the world. The exports of incense sticks have also witnessed a jump of over 30 percent from five years ago period. This is significant because the Made in India incense is competing with cheaper products from China and Taiwan among other southeast Asian countries. India accounts for over 70 percent of consumption of the world incense sticks market that is currently pegged at Rs 3,000 crore as part of the organized industry.

Product / Services & process

The firm is planning to produce the following. There are mainly 4 varieties

1. Aagarbatti

     a) Perfumed agarbatti

     b) Masala agarbatti

     c) Plain agarbatti

     d) Mosquito repellent agarbatti

 Process Outline: There are mainly two types of agarbatties manufactured:

a) Dipped Agarbatties:

Powders of Charcoal, Gigatu, White chips, etc. are mixed with water to a semi-solid paste. This composition is taken to an automatic agarbatti making machine, where bamboo sticks are previously loaded. Then raw sticks are dipped in a suitable perfumery compound diluted with white oil or other solvents like diethyl phthalate (D.E.P.) and dried and packed.

b) Masala Agarbatties:

The powder of charcoal, gigatu, white chips, indigenous herbs, resin, etc. are mixed along with perfumery compound consisting of essential oils, aromatic chemicals, purified resins, and natural fixative like Civet, musk, etc. to a semi-solid paste with the required quantity of water. The finished agarbatti sticks are bundled either according to the number or according to weight and wrapped in moisture-proof cellophane paper or butter papers and packed in the printed carton which again are wrapped in clear cellophane paper.

A typical composition for Masala batties is as under:

White chips 40%

Gigatu 20%

Charcoal 20%

Aromatic chemicals 20%

The composition can be modified according to the requirement. The process of manufacture of Agarbatti is made simply and almost all processes are similar and manufacturer to manufacture only formulated can change simple.

 

 

Raw materials / Consumables

 Agarbatti:

1. Agarbatti premix powder

2. Bamboo sticks

3.Perfume

4. d.e.p. oil

5. Packing sachet

6. Boxes

 

Market potential & Strategy

Agarbatti, candle, and camphor tablets are having a huge demand in the domestic market as well as foreign countries, mainly in the USA and European countries. India supply almost 90% of the world's countries with these products. Many export companies are based in Delhi, Mumbai, Kolkata, and Bangalore. Hence marketing is not at all a problem for this product. They collect products directly from the site. The products are having a great demand in the domestic market also. There are many other manufactures engaged in the production of similar products. The demand is very high and usually, the supply cannot meet the demand.

 Agarbatties are used by all communities in India, Sri Lanka, Burma, and by Indians residing abroad. As of today, about 90 foreign countries are using our agarbatties. Agarbatti industry is one of the labor-intensive cottage type of traditional industries in India and Karnataka state leads in this industry, the main centers of manufacturing being Mysore and Bangalore.70% of the total sale of the product comes from South India. The raw materials are nowadays available in and around Durg, Raipur, and in Nagpur also. seeing the vast and still growing consumption along with export potentials, agarbatti is one of the best FMCG at present.

Export Potential of agarbatti and related products which operate by burning

  • Exports have grown manifold in the last five years
  • Value of exports for perfumed agarbatti and camphor tablets increased more than 100 percent in the last five years
  • Indian agarbatti and related products exported to over 90% of countries in the world
  • USA, Thailand, Japan are the top importer market
  • High growth in export implies the proven capability of manufacturing the right quality of products that are accepted globally
  • India has the potential to become the leading agarbatti and related products producer in the world

The export of agarbatti and related products records an average growth rate of 25.7 %, which shows the potential and scope of this industry.

Marketing Strategy

The promoters have years of experience in this field and have business contacts with many direct and indirect distributors of the market. They also know the specifications of export quality products and the way to manufacture them. As the demand has not yet been met by the production, 100 % of the products can be sold for exports. MoU can be signed with the exporters. Being well aware of the export market and agencies, the competent price can also be ensured by effective bargaining. In case of any troubles happen in the export market, the products can be easily sold out in the domestic market; both inside and outside the state through distributors. Therefore marketing is not at all a headache for the agarbatti and related products. Promoters are in touch with the executive of India mart, trade India, amazon b2b, for online b2b bulk selling, and promoters planning to go to online retailing of the products with Flipkart and Amazon,

 

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