India is the world leader in Agarbatti manufacturing business. India exports agarbatti to more than 90 countries across the world. Imagine such is the magnitude of this business.
Agarbatti or incense stick has a deep rooted ancient past in India’s cultural, religious and spiritual heritage. Indian are not just producers but also consumers of Agarbatti in significant amount. It is used by Indian for building up a suiting atmosphere for religious activities at home, temples and other places. Agarbatti making business is one of those businesses where India has made a triumphant victory, beating the rest of the competitors across the globe.
India is a leader in Agarbatti manufacturing business. India is exporting it’s Agarbatti to 90 countries in the world. Agarbatti making is a profitable business India as India has long been engaged in Agarbatti making since time immemorial and now it is trying to capture the world market share to its full potential. India is an experienced lot in Agarbatti manufacturing business. But over a period of time, Indian market players are facing tough competition from China, Vietnam and Thailand.
They are incorporating new innovative ideas in packaging design of incense stick to woo the larger western market share all to themselves. If you are interested in this Agarbatti manufacturing business then I will prove to be highly beneficial deal for you. Wondering how to start Agarbatti making business or how to make Agarbatti at home, you can easily learn the Agarbatti manufacturing process. Once you know the Agarbatti making process, you can even start the Agarbatti making at home with minimum capital investment.
How you can start Agarbatti making business
Let’s get started. I will tell you and try to make you understand how you can start Agarbatti making business and what all things that you need to start your Agarbatti making process.
Table of Contents
Conduct feasibility studies
First of all you need to decide what type of incense stick, you are going to make. For that you need to do some market research, analyze the market demand after short list what kind of incense sticks are popular among the consumers. Decide upon the scale of operation. Since the demand for Agarbatti is present in domestic market and abroad. You need to decide whether you are going to serve domestic market or both.
I want you to keep one thing in mind that though many established brands are operating in the market but you don’t need to be disheartened because Agarbatti manufacturing business has place for all small, medium and large businesses. Think about your manufacturing unit, where you are going to set up your place, how much area will be required, how much investment will be required. Then you need to get acquainted with the type of machinery and cost of machinery.
Calculate upon the cost of raw material, cost of labour that need to be employed, utility bills and miscellaneous expenses, etc. Considering all these factors, prepare feasibility report. If you are thinking of starting Agarbatti making at home then, the cost involved leasing of manufacturing plant and the cost of utility bills and labour cost will be significantly reduced.
Finances
For answering, how to make Agarbatti at home or at a manufacturing plant, you need to work according to your report. For that you need finances. You will need finances for procurement of machinery and raw material. For arrangement of finances, if you have enough capital to investment, well and good and if you don’t then you can get a loan from bank.
Legal permit
After the arrangement of finances, you are required to make your business a legal entity. Get your business registered with ROC, obtain trade license, you can apply by MSME registration to get additional benefits, procure GST number for tax filing, get certification from pollution board.
Setting up the Agarbatti manufacturing plant
If you are operating from a plant or started Agarbatti making at home, in both the situation your working area should be big enough to accommodate all the machinery, it should have storage space and also a dedicated section for packaging of manufactured Agarbatti. Make sure that the place has all the basic supply of water and electricity. The place should have easy market access. Now, comes the step of machinery installation. Go to the market the types of machinery available, if you are looking for less labour requirement then fully automated machine is the best option, otherwise you can also go for semi-automatic and manual depending upon your choice. The Fully automatic machine, semi-automatic and manual machine will cost around Rs. 8 lakh, Rs. 5 lakh and Rs. 15,000 respectively. Now, come raw material requirement, I am telling you the raw material requirement according to the basic formula which require charcoal, gigatu , white chips, fragrances and essential oils, bamboo stick and packaging material.
Agarbatti manufacturing process
You can easily learn Agarbatti making process. First step, mix the charcoal, gigatu, white chips, fragrances in the percentage of 20%, 20%, 40%, and 20% respectively. To make the mixture a semi- solid paste, mix water into it. Now the mixture is prepared, only step left is to wrap the paste around the bamboo stick with rolling hands. The sticks are then bathed in fragrant compound in less concentrated form by diluted the solution with white oil. The sticks are left to dried and finally packed to deliver in the market.
Packaging
Just like I said at the beginning of the article, pay attention towards the packaging of your product. Attractive, creative and innovative packaging is the need of the hour. You can make a handsome some of money even if you are engaged in Agarbatti making at home by putting extra focus and attention towards building up creative packaging kit of your product so as to make your product stand out among the rest.
Robust distribution network
This involves creating a robust dealer and distributor relationship. You need to create relations with distributors and retailers for sale of your product. For gaining a large customer base, you have to ensure that your product should have a presence in local markets, supermarkets, and shopping malls. You can also sell on the online platforms like Amazon, eBay, etc. You can engage in exports as well.
Aforementioned are the basic things that you need to know to answer how to make Agarbatti at home or manufacturing plant or what are the things that you need for Agarbatti manufacturing business.