Agarbatti manufacturing business in India is expected to grow exponentially and reach Rs 12,000 crore in the coming five years. Agarbatti is made from an evergreen tree called ‘Agar.’ Since Agar trees are found in India due to its tropical climate, India is the largest producer of agarbattis globally.
The agarbattis were in use since the Vedic times. Agarbatti was useful for the aromatic and medicinal values, as its mention is found in Atharvaveda and Rigveda. The Use of agarbatti was an integral part of Ayurveda for healing purposes from the very beginning. Agarbatti is a norm in almost every household in India. The burning of agarbattis has been a practice since early times in India’s religious and social functions.
The Use of agarbattis can be seen in every walk of life in India. Due to the deep religious sense, people from almost every section use agarbattis, which in itself speaks volumes of the paramount importance of the agarbatti despite its diversity. Be it a temple or mosque, or even in yoga and meditation, it has formed a part of our life. The use and demand of agarbattis are not only confined to India as it has traveled to different parts of the world. Due to the spread of Buddhism, Asian countries like china and japan have become a hub for the demand for agarbattis. Europeans use this fragrance in the form of perfumed oil. Even the medicinal properties of Agar woods are recognized by Sunni and Shia Muslims all over the world.
Agarbatti manufacturing business employs up to 20 lakh people, and it has become the most vibrant industry in our country. Agarbatti and dhoop in India are manually produced, which helps in creating a large number of employment opportunities in rural India.
The primary reasons for the high growth of agarbatti making business in India are the rising number of temples, the rising number of pujas and rituals, rising disposable incomes and growing tourism, etc. The reason for increasing exports of agarbatti for the last few years is the growing love affair of the world with the Indian culture and the growing influence of Ayurveda, Yoga, Khadi, etc.
Following are the benefits of using agarbattis;
1- It is burned to cleanse or purify the air as they are the natural air fresheners and deflect the bad energy and is also an effective organic insect repellant.
2- Its aroma is used in perfumes around the world as they are available in different scents such as sandalwood, rose, mogra, kevda, etc.
3- The aroma of agarbatti soothes the mind and has various therapeutic values for the human mind.
4- Its fragrance helps to alleviate human spirits and helpful in floating into a deep sleep.
5- The Agarbatti manufacturing business in India is only likely to grow and enable self- empowerment and self-sufficiency amongst the rural and urban population.
The raw material required in the agarbatti making is easily available in Indian markets at a very minimum cost. The base material required for manufacturing agarbatti is Bamboo, which is also easily available in Indian markets, and it can also be produced by using stick making machines. Aromatic ingredients and bamboo sticks, and packing materials are the requirements for manufacturing the agarbattis.
Divison of Agarbatti manufacturing business-
The agarbatti making machines are the backbone of Agarbatti, the manufacturing business, so it has to be selected according to the production and capital of the business. The use of dryer machine and powder mixer machines makes the agarbatti manufacturing business to be more advance. Manual agarbatti machines are available in the market at a very affordable price as it does not require any kind of electricity by using pedals which makes this business more environmentally friendly and cost-effective.
High speed automatic agarbatti machine is a fully automatic machine and requires less manpower. In a humid manufacturing area, a dryer machine is very effective and also beneficial in the rainy season. Powder mixture machine is helpful to acquire the exact amount of dry or wet powder mixture according to the requirements of the business.
Following are the steps required in the manufacturing process of agarbattis-
Agarbatti manufacturing business is a highly export-oriented industry, which provides a high profit and helps in stabilizing the trade deficit of India. Agarbattis has been in steady demand in the overseas markets, irrespective of the economic or political climate. As per the ministry of commerce, the government of India data, India exported agarbattis of worth $498.02 million in FY2012 and FY2016, which is a respected figure. In addition to this, annual exports witnessed 11.57% growth from $89.64 million to $100.02 million in the same year.
Today, India is exporting agarbatti to more than 160 countries, including the USA, UK, Malaysia, Nigeria, etc. In FY2016, the US became the largest importer of agarbattis from India, with an import value of $11.3 million, followed by UAE and Nigeria. The Indian agarbatti exporters have been able to always find a new market, to help them stay stable in the business. Some companies have also started to employ machines to beat the growing competition from Chinese markets and meet the demands of domestic and global consumption.
The government, to enhance export and reduce imports, took two major decisions by placing the agarbatti from free trade to ‘restricted trade’ in the import policy and enhanced the import duty from 10 % to 25 % on ’round bamboo sticks,’ created a massive scope for booming agarbatti manufacturing business in India.
The agarbatti industry, in 2009, got a boost after it was classified as a handicraft product. Due to this, the agarbatti manufacturing industry became eligible for duty drawbacks, and 5% incentives were being provided under the Merchandise Exports from India Scheme (MEIS). In the wake of expanding the ideals of Make In India, the government has expanded its support to artisans who are involved in the agarbatti manufacturing business, and in the process of making India “self- reliant,” the MSME Ministry has approved the “Khadi Agarbatti Atmanirbhar Mission” to create employment for the migrant workers and unemployed people in different parts of the world. It aims to support the local artisans and the agarbatti industry.
The ministry has been looking into all the aspects of boosting the agarbatti manufacturing business by supplying machines for making agarbattis and ensuring an adequate supply of inputs and raw materials that have been in high demand in the last one year.
Keeping in mind the current consumption of agarbatti, which is approximately 1,490 MT per day, and the growing production of agarbatti in India, which is 760MT per day, the government of India under Self- reliant India program have expanded to more than Rs. 55 crore. It aims to support around 1,500 artisans, developing two centers of Excellence at IITs/ NITs and Fragrance and Flavor Development Centre in Kannauj, costing Rs. 2.20 crore to the government.
To benefit about 5,000 additional artisans, ten new SFURTI (Scheme of Fund for Regeneration of Traditional Industries) clusters costing about Rs.50 crore to the government. The pillars of these programs are continuously aiming to support the artisans through training, raw materials, marketing, financial assistance.
Under the khadi agarbatti aatmanirbhar mission, KVIC will provide a 25% subsidy on the cost of machines, and it will recover the remaining cost in easy monthly installments from the artisans. The raw materials will be provided by the business partners to artisans for making agarbattis. The KVIC and the private business partner will share the cost of artisans training where the commission will bear up to 75% of the cost while the rest will be paid by the business partners. Every Automatic agarbatti making machine will provide direct employment to at least four persons by making 80kg agarbatti per day, and one powder mixing machine will employ two persons.
The Modi government, by announcing on 4th September 2020 has expanded this program has increased the Automatic Agarbatti Making machines from 400 to 200 and provides an additional 500 pedal-operated machines will be given to the “Self Help Groups” through 20 pilot projects and providing them a proper marketing and raw materials. It also aims to give preference to the ‘migrant workers’ and artisans developing hand-rolled agarbatti as a part of the program and will immediately benefit 1500 artisans.
To give a boost to the agarbatti manufacturing business in India, the government is all set to support the artisans by working upon their overall aspects of the product, which includes innovation in fragrance and packaging, setting up proper marketing linkages under SFURTI Scheme, and to strengthen the capabilities of the machine manufacturing and attain self-sufficiency in the country. These projects are aiming to give a kick start to build an indigenously capable market, which will eventually lead to increasing the exports and provide employment opportunities to artisans and entrepreneurs.
To achieve the ideals and goals of our PM Narendra Modi, the KVIC or Khadi Board enhanced its subsidy, i.e., from 30% to 40%. The Board thereby is providing more employment to the rural and semi-urban population and aims to improve their livelihood. KVIC has decided to procure only locally made machines from Indian manufacturers. Keeping the festival season in mind, the government has announced the enhancement of rebate up to 40% to boost the indigenous market.
The domestic consumption of agarbatti manufacturing business in India has witnessed a growth in COVID-19 times due to some strange and unique reasons despite the economic slowdown in the country as in the troubled times, people are more inclined towards praying more and so they will need more agarbattis to appease gods. The visionary PM of India has very well understood the importance of giving a boost to the Agarbatti Manufacturing Business in India and due to which lately by various programs and schemes efforts are being made to expand this industry.due to the huge gaps in between demand and supply of agarbatti, there lays the immense potential for job creation.
The agarbatti industry is dependant predominantly in rural India. Many agarbatti manufacturing businesses in India can connect with rural families and use this untapped resource to provide them rural empowerment and livelihood both as the women in India constitute almost 80% of the workforce, and they are playing a major role in agarbatti rolling and packaging activities, and they are leD by working in factories or in their respective homes which makes it easier for them to manufacture and dispatch them for sale.
Agarbatti manufacturing is a labor-intensive industry as they are handcrafted predominantly by women workers because of the easy availability of raw materials and a straightforward process of manufacturing. Thus, by using the rural women workforce in the agarbatti manufacturing business, we can achieve a two-fold success in the governments’ Make in India’ and ‘self-reliant’ India by empowering local women’s and improving their standard of living, and enlarging the indigenous sector, which will ultimately lead India to achieve the milestones.
By assisting in implementing various programs & schemes of the government of India, our organization Aatmnirbhar Sena is working day and night to assist the aspiring entrepreneurs and to promote local and indigenous cottage industries like the agarbatti manufacturing business; we are adamant about providing all kinds of assistance to help them establish their business.
Aatmnirbhar Sena is working in line with the government to ensure women’s participation in the development process by making them aware and providing them job opportunities, and by conducting various awareness program in a rural area, different vocational sessions, and aiding them with financial assistance to boost the existing business or in initiating the startups of budding entrepreneurs to achieve their dream of a successful business.
Even though the agarbatti manufacturing business is perceived to be a small cottage industry, it has managed to lead in exports and domestic production, leaving behind the effects of tough competition from China and Vietnam; India is managing quite well in dominating the market with its premium quality agarbattis.Indian made agarbatti are considered the best in the world and enjoy a vast customer base all across the globe. The initial requirement required to start the agarbatti manufacturing business is quite low, which makes it easier for smaller entrepreneurs to start the business. Being a highly profitable business, anyone can start it even in their homes.
Agarbatti manufacturing business has the potential of implementing the rural Industrialisation policy of the government of India to a great extent. The government of India is playing a vital role in enhancing the agarbatti manufacturing business in India by low barrier entry of the industry, making available the imported cheap raw materials, reducing the import duty which has lead to the increase of 15.5% of the market and has created vast job opportunities in this sector by making use of this highly labor captive industry.
Read our article:Agarbatti Making Business In India Is The Next Big Thing