How to Start Agarbatti Making Business?
Agarbatti completes all Indian festivities and any religious event with the use of agarbatti is almost impossible. Apart from religious reasons, incense has a calming effect and the ability to create positive energy in the environment. This is the reason why incense sticks are burning in the temples and spiritual centres. They are widely used in ceremonies, rituals, auspicious occasions, and festive celebrations. People also use it regularly at home for everyday worship.
Moreover, with the increasing popularity of Ayurveda and Yoga, incense stick has gained global acceptance for their therapeutic benefits. The natural ingredients used in their manufacture have made them very popular in developed countries as well as gradually in India too.
The demand for agarbatti is always there throughout the year, but demand increases during festivals such as Diwali and Navratri. The country’s total production of incense sticks (agarbatti) is estimated at 100,000 tonnes per year. Of this amount, only 25-30% is manufactured by organized manufacturers while 70% is supplied by small units based on cottage industries running on handlooms or semi-automatic machines.
So obviously as an investor, you don’t need to worry about the demand if you want to start an agarbatti business.
Main investments:
- Incense sticks
Raw materials, chemicals and ingredients required for the making of incense sticks is charcoal, bamboo sticks and scented material. The scented material is a base of wood powder, masala and synthetic perfumes. These are available in the market at wholesale prices.
- Plastic packaging
Nowadays people prefer agarbatti brands that offer high-quality plastic packaging. Plastic packaging material is readily available in the market at competitive prices.
- Machine
Different companies have come up with various types of machinery that help in making incense sticks in bulk. These machines are cost-effective and come with the technical know-how of use. These machines can be purchased from local or international manufacturers depending on your financial budget.
- Labor
Unskilled labour is required for packaging, bundling and boxing of agarbatti packs. Hiring semi-skilled or unskilled labour should not be a problem as it is easily available at competitive wages throughout India.
- Raw materials needs:
The most important raw materials needed to get your business up and running include:
- Incense sticks raw material.
- Sawdust powder/jiggat powder/charcoal powder
- Agarbatti Perfume
- Natural Herbal Perfume, You also need fragrances like rose, sandalwood, jasmine and others.
- Synthetic Perfume
- PVC Tube for packaging of Agarbatti
- Packing paper for making Agarbatti packets
- Paper for making Agarbatti packets (Inner and outer both)
- Straws for making incense sticks
You would also need to do some research on the main resins used which are Halmaddi resin, Dammer resin, Frankincense gum, Benzoin gum, etc.
Licenses needed
Firstly, you will have to register and procure a license for your Agarbatti Business. You have to register your business name with the Registrar of Companies (ROC) and obtain a license from the Chief Controller of Explosives. You can become an MSME (Micro, Small or Medium Enterprises) by registering under MSME Udyog Adhaar registration through an online portal. You will get a unique identification number which is UAM (Udyog Adhaar Memorandum).
Now you need to get a Trade License by applying at the Municipal Office of your respective city. You can make an online application through Trade License Portal. Get yourself registered as a Shop Establishment with the Labour Commissioner in your state if you are planning to hire employees in your agarbatti manufacturing unit.
Market Research for product design
If you are confused about the type of agarbatti to sell, you can do a bit of research in the market to find out the best selling agarbatti. For this, you can either do a survey among your target audience or walk into a popular store like a Patanjali franchise and get to know about their best-selling agarbatti.
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