Agarbatti business is one of the most profitable traditional small scale businesses worldwide. People 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.
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 go for large scale also.
Step by Step Guide to Starting Agarbatti Business
Raw Material For Agarbatti Making Business
Charcoal powder, sticky powder, nargis powder, raw bamboo sticks, water, various variety of oils, aromatic essence, flower essence , sandalwood oil, rose petals, natural and chemical aromatic ingredients, sawdust, thick paper, gelatin paper, scissor, waste paper, various colour powder etc are components that will be needed for manufacturing agarbatti. A decent cardboard box will be needed for packing. You can source the raw material from any wholesale shop or from reliable suppliers.
Create a Business Plan For Agarbatti Business
In starting agarbatti making business it is important to craft a business plan. Among 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 project report 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.
Compliance With Agarbatti Making Business
Determine your legal pattern of the firm and register accordingly. You will need to obtain Trade License from the local authority. You can register your agarbatti making business as SSI Unit. You will need to have Vat Registration. Protect your brand name by registering Trade Mark.
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.
Market Opportunity For Agarbatti Making Business
There is a huge demand for agarbatti in domestic as well as in international market. India is exporting a wide range of agarbattis or incense sticks that have natural, exotic fragrances.
There are 10000 agarbatti manufacturing units in the country including micro and small, besides another 200 well-established ones having over 50 branded agarbattis. Setting up a unit and developing the brand of agarbatti is a very potential business.
You can go with the existing distribution channels available in the market or can place your products in retail stores.
Project Overview of Agarbatti Making Business
The price of the semi-automatic incense stick making machine starts from Rs. 90000. An automatic agarbatti project cost can be started from 5 lacs onwards.
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.