India is a religious country more than any nation. Thousands of agarbattis are used at each temple every day. The excess demand is not met by sufficient supply, hence it is fruitful to start an agarbatti making business in India.
Agarbatti is also known as incense sticks. Starting an agarbatti business requires knowledge of the manufacturing process. A detailed business plan is a next step after getting expertise in the field.
- 1 How to manufacture agarbatti?
- 2 Benefits of agarbatti manufacturing process
- 2.1 India is the main agarbatti producing country.
- 2.2 The export of agarbatti contributes as a major portion in India.
- 2.3 Imports are now even reduced by the government of India.
- 2.4 The demand for agarbatti has increased from the national to the international market.
- 2.5 India itself is the largest consumer of agarbattis.
- 2.6 The cost of making an agarbatti is relatively low if produced in India.
- 2.7 India has abundant resources to match the demand of agarbatti.
- 2.8 Government initiatives for agarbatti business
- 3 Business Plan
- 4 Conclusion
Here is a guide that accumulates every aspect of agarbatti making business from the start.
How to manufacture agarbatti?
Right Amount Of Mixture
It is important to mix raw material in the right proportion to obtain a mixture in the right quantity. This process defines the quality of manufactured incense sticks.
You will start by adding the powders that will make it into a paste.
Before starting this step learn about the machines you are using. Read the manual or hire a helper.
Time To Use Machines
After the preparation of the mixture, you can start loading it into the machine. Provided you have learned about the machines.
Add bamboo sticks in the machine with the mixture. In an hour around 12 kg of agarbatti will be ready to process further.
This is an extra step if you don’t want to use machines. Then start taking raw material in your hands and roll it on the bamboo sticks.
It is easy once you get a hold of it. The process becomes simpler if you do it on a wooden board. Try using light hands to give the proper shape.
Sending Mixture To Dryer Machine
Once you have the raw material made properly. But it is still full of humidity. You need to dry it so that it can burn after the manufacturing process.
Load it into a dryer machine, if you are using one. Don’t forget to read the manual. It can tell you important things.
If you are not using a machine, then get a place with sunlight and place it under that. It will dry them in a couple of hours.
It is difficult to dry agarbatti without a machine. Do consider this option before knowing that rainy and winters will be your off time.
Make Them Attractive
The fragrance is an addition to agarbatti. Well, it is wholly up to you if you want to add fragrance or not. You can even sell them directly without fragrance.
It is recommended to add fragrance to make them feel attractive.
You can consider making both. As you can charge differently for both of the products. One is fragranced and the other is without fragrance.
Benefits of agarbatti manufacturing process
India is the main agarbatti producing country.
The history of agarbatti has started in India. India is the country that has given the concept of incense sticks to the world. The major resources are found in India. Due to its originality, India holds its position in the world.
The export of agarbatti contributes as a major portion in India.
India has a variety of resources to produce original products. The international needs of agarbatti are even met by Indian agarbattis. A business can be expanded to the international level, this opportunity is very rare in various industries.
Imports are now even reduced by the government of India.
Due to the government of India, the agarbatti business has found a new peak in India. But its demand is not fulfilled. No agarbatti business in India can face a low demand, provided you grasp the opportunity right now.
The demand for agarbatti has increased from the national to the international market.
The demand for agarbatti was always there in India, but in today’s era, it has reached the international market. As mentioned before exports are increasing at a high rate.
India itself is the largest consumer of agarbattis.
Agarbatti is consumed even by the sellers of agarbatti, so if you are using your product then it is the biggest marketing tool. You can reach millions of users, you need to have the right business plan.
The cost of making an agarbatti is relatively low if produced in India.
As mentioned before India is the origin of incense sticks. So the cost of manufacturing becomes relatively low. Also, fake incense stick has rolled in the market but it is easy to identify them.
India has abundant resources to match the demand of agarbatti.
The market for agarbatti is not explored enough in India, which in result has created insufficiency of supply. You can be the person to start manufacturing and using Indian resources to become a profitable business.
Government initiatives for agarbatti business
The heavy import of agarbatti has been reduced due to make in India movement. This has called for large demand from domestic suppliers in India. On August 31, 2019 agarbatti were shifted from free to restricted category.
The import duty on the heavy flow of goods from chine has been changed to a higher rate. That has decreased the number of imports in India.
Structure of Business
Starting an agarbatti making business needs a proper location. Before knowing what are the profit margins of the business. Do consider the amount of investment you can invest.
The first decision to start an agarbatti making business is defining your legal structure. Here we have incorporated all the options to start with.
Home-based Agarbatti Business
It is really easy to start a home-based agarbatti business. Simply purchase agarbatti making machines and you are good to go.
Agarbatti Manufacturing Factory
- Small Scale Business: You can establish a small scale factory that manufactures for limited area. The amount of production and investment will be less. While returns will be more than a home-based business.
- Large Scale Business: This kind of business requires a large amount of capital and expertise in the business. Production targets a huge market.
You need to know about the legalities of business. Some kinds of licenses are applied which allows you to trade freely in the market.
Basic permits for a business
GST Registration: After the implication of GST in India all goods and services businesses must be registered under GST laws.
Business Registration Every business is eligible to be registered under company law.
NOC from pollution board Businesses is generally prone to pollution hence it is mandatory to get a permit from the pollution board. It will keep a check on pollution.
Trade License While trading you need governments permit. To apply directly online to get it done as soon as possible.
Specific permits for agarbatti business
SSI registration If you are starting as an SSI unit, then it is compulsory to apply for SSI registration.
Factory License Opening a factory will call for a license. Specifically for operating factories.
Pf Registration If you are employing more than 20 employees then it is must obtain Registration From EPFO.
ESI Registration A business that employs 10 or several employees are required to obtain this license.
Automatic Machines: Due to the large demand in India businesses usually prefer fully automatic machines. It can generate a high volume of products within less time.
Semi-Automatic Machines: You can save on the cost by buying semi-automatic machines to make agarbatti. These are operated by a person. You can generate sufficient but limited production in the provided time.
Dryer Machines: To absorb the humidity (if any in your area), it is a must to have dryer machines. It helps to make incense sticks of high quality.
Mixer Machines: These machines help you mix in appropriate proportions. You can set the machine and it is ready to work.
Purchase: You can directly purchase bamboo sticks to use for the business.
Material: You can even make your bamboo sticks by purchasing raw materials. This process is generally started at further stages of expansion in business.
Incense sticks are supplied in different colors. The color powder helps to create those different and attractive look.
- Jikit Powder
- Nargis Powder
- Charcoal Powder
- Gum Powder
Perfumes are required to add fragrance in incense sticks. Here you have the opportunity to innovate, You can create your line of fragranced incense sticks.
Buy raw material here.
You need to purchase such type of packing material that helps to secure incense sticks. They are easily prone to break down. Generally, two-step packaging is preferred by manufacturers.
Primary Packing: Airtight packaging is required as the first form of packing. Then it is sealed usually in transparent packing materials.
Secondary Packing: Boxes are generally used as the second form of packing. The brand logo, name, and the label are mentioned on the packaging material.
Once the products are manufactured, generally goods are transported to retailers and wholesalers directly from manufacturers. Transportation cost is upon the buyer. You need a good transportation facility for the same.
Ensure the products are not damaged or stolen during transportation. If it happens the sole responsibility comes upon the manufacturer. Only before the delivery is done.
Don’t forget to take advantage of government schemes in India. It is mandatory to learn the rules and advantages, especially when given by the government.
At today’s time, you are standing at a great opportunity. Most of the people see one, but clever are those who take it. It is up to you to take it or wait for it. The boost in the agarbatti market has seen by some. It is by time for you to take action for that.
I hope you are ready for the future struggle, we are here to help you out.