How to Start Agarbatti Making Business

Do you want to start an agarbatti making business? Find here in this article a business plan guide on how to start incense stick making business on small scale with low capital.

Agarbatti business is one of the most profitable traditional small-scale businesses in Asian countries, especially in India. People use burn agarbatti for religious occasions and also for aromatherapy, meditation and yoga.

Agarbatti is a consumer product that the demand is found throughout the year and it increases in festive days. There are 10000 agarbatti manufacturing units in the country including micro and small, besides another 200 well-established ones having over 50 branded agarbattis.

The scope and production of agarbatti making business are based on the individual investment capability. One can start this business as home-based and can also as a small scale manufacturing unit.

Step by Step Guide to Starting Agarbatti Making Business

Create a Business Plan For Agarbatti Business

In starting agarbatti making business it is important to craft a business plan. Among the various quality of products, decide which type of agarbatti you will be making. Accordingly, you will need to select the machines.

It is recommended to have a business plan in hand before initiating the venture. calculate startup budget with a fixed capital investment like machinery, plant etc. and working capital investment including manpower, raw materials, promotional cost etc.

Determine your business objective and marketing strategy. Creating a detailed business plan will also help you in arranging finance for your venture. Craft a catchy memorable brand name for your product.

Make your Agarbatti Making Business Legal

Determine your legal pattern of the firm and register your business accordingly. You need to determine what business structure your agarbatti making business will operate. You can operate as a partnership, limited liability company or sole proprietorship.

Also, check the licenses and permits required to start manufacture and market agarbatti items with the local authority.

Machinery For Agarbatti Making Business

As per your business plan select the machinery. Two different types of machines normally used for agarbatti making. One is semi-automatic and another in fully automatic. Normally semi-automatic agarbatti making machines give an output of 30-35 kg and automatic agarbatti making machines give output 65-70 kg per day. Normally you will be making 150 – 180 sticks per minute out of those machines.

As per your desired length, output and quality choose the right one. Selecting the right machines for your agarbatti making business is crucial to get success in the business.

Raw Material For Agarbatti Making Business

The major raw materials for agarbatti are bamboo sticks and different powder. Other materials are Charcoal dust, Jigat Powder, Nargis Powder, Wood Incense Powder, Joss Powder and several essential oils. According to the fragrance, you need to select the right formula. Pay attention to the packaging. A fragrance lock packaging system is important in agarbatti making.

A decent cardboard box will be needed for packing. You can source the raw material from any wholesale shop or from reliable suppliers.

To be Successful in agarbatti making business, setting an effective distribution network is extremely critical. Talk to local retailers and distributors and promote your product.