Agarbatthi making business plan

Agarbatti is an Hindi Indian word that is generally referred to as ‘Incense Sticks’ around the world, and as the actual name suggests, they are thin long sticks of bamboo of around 8″ to 12″ in length that is covered with an aromatic paste of natural concentrates of scented blossoms or other significant fragrant wood varieties like sandal.

There is great potential in Agarbatti manufacturing business as its demand is always high and goes considerably higher during celebrations or festivals. Agarbattis are used in more than 90 countries. India is the only country that manufactures these Incense Sticks and fulfills all nations’ requests around the world.

Presently, one must be wondering how to begin agarbatti business from home. Here is a stepwise process from the first step that includes the business’s planning to the last step that involves getting a loan on this business. One will find a reasonably good market abroad as well as in India.

Basic Parameters For AgarBatti Making Business Plan

Investment

Rs 80,000 to Rs 1.5 lakh

Production

3000 kg monthly or 100 kg per day

Manufacturing Cost

Rs 1 lakh or Rs 33 per kg

Turnover

3000 x Rs 100 per kg = 3 lakh per month

Gross Profit

Rs 2 lakh per month

Incense Stick or Agarbatti Initial Planning Phase

Agarbatti manufacturing business is quite lucrative. Also, with some small machinery and equipment, one can begin this manufacturing business even at home.

It is a customary item and is a fundamental thing that is required in every family and holy places and other places of spiritual importance.

The extent of the agarbatti making business relies on individual capacity and the agarbatti manufacturing unit’s production capacity. It is also dependent on the market demand of the agarbatti. The demand is high and constantly increases during the celebration season.

Not only Indian markets, but one can also export Agarbattis to other Asian countries. India has exported over 500 crores of incense sticks to many Asian countries like Japan and China in the year 2017 and 2018. Over 90 foreign countries use these incense sticks, so the demand for them always remains quite high.

Since the foreign demand for agarbatti is always high, exporting it can be a better option. This business requires low-grade technology, and it is an export-oriented manufacturing industry. Therefore, the initial investment required in agarbatti making is quite low, and one can earn around Rs 500 for each 100 kg of 20 kg of machine production, i.e., around Rs 25 per kg of production and selling.

The GST for agarbattis was 12% initially later; it was reduced to 5%.

Different Licenses Required for Agarbatti Making Business

In case one is thinking on how to get an agarbatti business license to operate – listed below are the business licenses required to operate. The prerequisites or the documents required for an agarbatti making business permit may change from state to state; consequently, it is advised to check the state rule with respect to agarbatti permit license to operate.

  1. Company Registration: This is the first step to start incense making business. One needs to register their business as a company or Proprietorship or ROC register of companies to get started.
  2. GST Registration: GST registration is mandatory for every business holder. On successful registration, one will get a GST number for selling their goods or services.
  3. EPF Registration: This registration is necessary only if one has more than 20 employees in a manufacturing unit.
  4. ESI Registration: This Employee State Insurance or ESI has greater than 10 employees.
  5. Trade License: This is necessary for every person having a business. One can get it from local authorities.
  6. SSI Registration: Registration for this license is required for those having a SSI unit, though this is not compulsory.
  7. Pollution Certificate: This certificate is necessary, and one gets it through inspection of the site where one has their manufacturing unit. It is done by the State Pollution Control Board, after which one will be allowed to conduct business.
  8. Factory License: Large scale manufacturing commercial units must have a NOC and a factory license.

Raw Material required for Agarbatti Making Business

The materials needed for making incense sticks are accessible in the Indian market with ease. One simply needs to look or visit the agarbatti making unit or raw material provider. The amount of materials required depends on one’s production capacity.

Bamboo is the base material of the Incense Stick, which is easily available in the Indian market, that comes from Vietnam, and it costs around Rs 120 for every kg. One can also make their own by sticks through stick making machines.

List Of Raw Material Required For Agarbatti Making:

The raw materials required for Agarbatti are:-

  1. Aromatic Ingredients
  2. Natural aromatic oil – Only natural

Bamboo Sticks: Bamboo sticks that ranges from 8″ to 12″ inches are required, or

Raw Bamboo Sticks: If one is manufacturing bamboo sticks, one needs to buy bamboo sticks in raw form for making incense sticks

Packing Materials: The packing material used must be airtight that locks the fragrance of the agarbatti

Different Color Powder: One can add different color powders to make agarbattis look attractive. The powders are:-

  1. Crude Paper
  2. Charcoal Powder
  3. Gum Powder also known as Sticky Powder.
  4. Nargis Powder
  5. Jikit Powder
  6. Perfumes
  7. Oil Of Sandalwood
  8. Sawdust

Addition of Fragrance: The addition of fragrance is a different manufacturing step. But it is optional. There are many agarbatti manufacturers that sell it without adding any fragrance. One can do the same if they are selling in local markets. Or one can add any fragrance as per their liking or can do a market survey to know which fragrances are preferred.

Area necessary for starting Agarbatti making business (location)

One can start the agarbatti making business from home or any place as this business doesn’t require any specific setup, but one must make sure that the place must be accessible by transport and one has easy access to raw materials.

The area required is dependent on the number of machines required to be installed.

Agarbatti Making Machines

This is the second last step. Machines are very important in one’s agarbatti making business. There are various types of machines available in the market, but one needs to select that as per one’s budget. There are various types of machines available in the market. The agarbatti making machine uses advanced technology, and they are some machines like dryer machine and powder machine.

Manual Agarbatti Making Machine:

Machines that are operated manually can be bought in a single pedal or double pedal type, whichever is convenient to operate such that one can achieve high production at low cost. Owing to the pedal mechanism, this machine can be run manually, and hence there is no use of electricity. By using pedals, it can be run manually. These manual agarbatti making machines are quite affordable as compared to Automatic.

Agarbatti Making Machines.

Suppose one wants to go in for the production of high volume. In that case, one should opt for these automatic agarbatti making machines because with the help of the latest technology; these automatic machines produce approximately160 to 200 sticks per minute.

One can also make a square shape Agarbatti with the help of these machines. These automatic Incense Stick making machines come in different attractive designs, patterns, size and shapes as per the customer’s requirement.

High-Speed Automatic Agarbatti Making Machine:

High-speed automatic agarbatti making machines need less manpower as it is fully automatic. Such machines can produce  300 to 450 sticks per minute. These machines have the feature of adjusting the production of the length of incense sticks. One can set one’s machine from 8′ inches to 12′ inches.

Dryer Machine:

If the area where incense sticks are produced is humid, one must buy a dryer machine to dry out raw agarbatti. This dryer machine also comes handy during the rainy season.

Powder Mixer Machine:

For the purpose of making a uniform mixture of raw substances for making agarbattis, a powder mixer machine is very helpful because it can mix the exact amount of wet or dry powder mixture. Supplier customizes this machine according to the production capacity of the customer. The powder mixer machine can mix  10 to 20 kg of mixture per minute.

Applying for loans

For starting out, one might not have the proper funds to buy the required machinery. For setting up, one can take loans from LendingKart. The business loans offered have the following features:-

  1. They have lower interest rates.
  2. Easily disbursed.
  3. One can apply online.
  4. It requires minimal documentation.
  5. Easily offered

After securing the loan, one can easily set up their business unit.

Agarbatti Business Plan FAQs:

1. What are the steps required in Agarbatti manufacturing?

The steps required are:-  Step 1. Mixture Preparation - Requires a paste of gigatu, charcoal and white chips  Step 2. Mixture loading in the machine - Put semi-solid mixture into the machine and place bamboo stick  Step 3. Collect agarbatti : The incense sticks are ready  Step 4. Dry the agarbatti: Dry it for a day under the sun or by using a dryer machine.  Step 5. Add Fragrance - This is optional  Step 6. Pack the agarbatti - Pack in a high-quality box

2. Where can one sell their Agarbattis?

One can sell their Agarbatti in the local market or can export it outside the country.

3. What is raw agarbatti?

Raw agarbatti is one that has no perfume added in it.

4. Where can one sell raw agarbatti?

One can sell raw agarbattis to perfume adding industries. They will add perfume and sell it in the market.

5. Can one sell their agarbattis online?

Yes, one can sell their agarbattis online by creating a website or on an e-commerce platform.

6. What are the various divisions of agarbatti making business?

The various divisions of agarbatti making business are  Incense Stick making unit  Bamboo stick supplier unit  Raw material supplier unit  Perfume adding unit

7. Is LendingKart RBI registered NBFC?

Yes, LendingKart is an RBI registered NBFC. So, the loans offered by us are 100% safe.

8. What are some of the popular fragrances in agarbatti?

Some of the popular fragrances are:-  Rose  Lavender  Marigold  Sandalwood  Cedarwood

9. Can one make eco-friendly agarbattis?

Yes, one can make eco-friendly agarbattis with dried flowers is more healthy and more preferred nowadays.