Agarbatti Making Business in India is the Next Big Thing

The demand for agarbatti making business in India is on the rise. India is the world’s leading country to produce an Incense stick, also known as agarbatti. Burning agarbatti has always been a part of India’s tradition and has been an integral part of any ritual. Currently, most of the country is using it for its religious relevance. Western countries, on the other hand, are also buying agarbatti sticks from Indian based company. Agarbatti is produced from sources like flowers, leaves, herbs, seeds, oils, and sandalwood. Indian culture recognizes the use of agarbatti with immense importance. All religions within India have been the constant use of agarbattis for worship and religious purposes. The natural aromas out of these agarbattis help to improve the mood and enhance their essence of prayer. It has particular importance with the Hindu religion. The smells of the sticks have a healing capacity that is naturally soothing and calming. Once the calming effect takes place, there is enhanced concentration. Apart from calming the minds and oozing out positivity, this has been a significant economic activity in India. 

Large rural crowds earn their livelihood from the agarbatti making business hence contributing a great deal to the economy. 

Agarbatti Making Business

Agarbatti making business is one of the most profitable companies taken up by entrepreneurs in today’s time. Agarbatti or incense stick is a thin piece of bamboo stick, usually coated with some aromatic materials or natural fragrances like flowers, herbs, etc. Due to fewer complications in its manufacturing and less machinery or equipment, it is easy going business. Asia Pacific region is one of the largest consumers as well as producers of agarbattis. Agarbatti is mostly for religious purposes, but it is widely in demand in all households, shops, temples, etc. for its fragrance and other features. The need for agarbatti is arising globally because of its tremendous use in all the spheres of life. The current exports of Agarbatti from India stand around Rs. 700 crores, though we face competition from China and Vietnam. 

The agarbatti (incense sticks) industry has become a significant business enterprise in India. Initially, it started as a family business. The Government of India later declared this as a cottage industry. Due to a few innovative entrepreneurs’ hands, it has attained the status of a small-scale industry. It is a labor-oriented industry employing lakhs of people, including large numbers of women.

The agarbatti making business employs two million workers in the country. Women constitute almost eighty percent of the workforce and are majorly engaged in bamboo processing, agarbatti rolling, and packaging activities. Women workers generally out-number the number of men working in the agarbatti business. More or less, the agarbatti making business is dependent upon women labor for its growth, etc. Women laborers work at factories or work at their respective homes, manufacture it and dispatch them for sale. The majority of the women workers are from a rural background. Approximately 72 percent have migrated from rural areas to the city in search of better occupational opportunities. The remaining 28 percent are from the city.

However, due to ease of doing business, budding entrepreneurs can start the agarbatti making business at any point, keeping in mind specific components such as business plan, ingredients, legal compliances, marketing strategy, etc.

Components of Agarbatti Business

 If you are prepared to take up a new venture in the form of agarbatti making business, we shall lay down a few essential components to guide you step-by-step in the following manner:

• Market Research– The first and foremost thing to do is analyze the market by identifying what all sticks are popular and currently in demand, according to which you shall have to decide the business size and the route of manufacturing. With this, you also need to analyze the target customers, the finished products’ price, etc.
• Business plan– In preparing the agarbatti making business plan, you will need some crucial and detailed information. Firstly, you have to determine the workspace for the unit and the cost of it. Secondly, you have to provide details of the machine with the quotation price. And finally, the other expenses like labor wages, raw material cost, utility bills, etc.
• Source of financing the business– Since the agarbatti making business is a small-scale business. Hence, they should start the industry with their capital or, with the aid of government schemes such as the Atma Nirbhar Bharat scheme, provides free collateral loans to MSMEs, MUDRA schemes, etc.
• Location– You can start Agarbatti making business from your home or any other place. It does not require a specific area for setup. All you should be vigilant about is the safety of the site before acquiring it for business.
• Procuring raw materials & equipment– Raw materials and kits for agarbatti manufacturing are readily available in the market at a low cost. Some raw materials include Fragrances, oils, bamboo sticks, packing material, colored powders, added chemicals, etc. Machinery and requirements are the backbones of any business enterprise. Many companies are available who sell different kinds of machinery for agarbatti making. Still, you have to go for a reliable machine according to the production and capital of your business.
• Agarbatti manufacturing process– Manufacturing of agarbatti requires several steps. It is manufactured manually or via machines. It involves preparing the mixture, loading the variety in machinery, collecting the finished product, keeping it for dry, adding fragrances, and packing it for sale in the market.
• Sale of agarbattis– Once done with the manufacturing, the next step is selling your products. You can sell agarbatti online as the online market can be a massive market for your agarbatti, making business or sell it to the local markets. 

Realizing the scope of agarbatti making business in India and globally, the Government of India has put forth several initiatives in the form of schemes and regulations to boost budding entrepreneurs’ morale. As an Aatmnirbhar Sena, we have been relentlessly assisting the opportunity seekers and those who wish to build their dream in a successful business. We act as their launchpads and leave no stone unturned in bringing them a step closer towards their goal. We conduct professional workshops, upgraded technology, and vocational sessions for their benefits. We also encourage women from all communities to participate in the industry for their welfare and financial up-gradation.