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New Business Ideas of Agarbatti Making

How to Start Agarbatti Making Business

Incense sticks or agarbatti are used as fragrance sticks for various purposes in religious and social functions. Agarbatti is made of aromatic powder which act as fragrant fumigant and helps for antiseptic properties. Agarbatti making business is a small-scale business idea which can be start with a low investment and profit margins are high.

Agarbatti plays an important role in our daily various rituals. Dhup is also another term used for agarbatti. Agarbatti are available in different sizes and colours with many ranges of perfumes in the market. Agarbatti is varied according to quality and length which varies the burning time from 5 minutes to 2 hours.

Agarbatti is a profitable business as the demand is throughout the year. Developing your brand plays and important role in agarbatti making business unit. Making of incense sticks is very much simple process using various machines. It can be manufactured using machines or made by manual process also.

In this article we will provide you information on various topics such as,

How to start agarbatti manufacturing unit?
What is the process of making agarbatti?
What are the raw materials and machinery used?

Two types of agarbatti are commonly available

Perfumed agarbatti – powder required charcoal, gigatu, white chips. they are mixed together forming a paste. after that the paste is pass to agarbatti making machine. Therefore, the raw sticks are dipped into perfumery which may be white oil or diethyl phthalate. Finally, the sticks are dried and then packed into packets.

Masala agarbatti - It consists of the following compositions, White chips 40 %, Gigatu 20%, charcoal powder 20%, aromatic essential oils and other ingredients.

Varies fragrances are available like Rose, Marigold, Lavender, sandalwood, Jasmine, Chandan, Gulab, Mogra and lotus.

Raw materials used for making incense sticks

Raw materials are easily available in local market and also available online which are not expensive. The raw materials required for making agarbatti are as follows-
  • Ø  Bamboo sticks – According to different size various sticks are available in the market. Price of sticks will be around 110-125 per kg.
  • Ø  Charcoal powder – The price of charcoal dust powder is around Rs 10 per Kg.
  • Ø  Gum powder- The price of gum powder is around Rs 80 per Kg.
  • Ø  Jigat powder – Price around Rs 50 to 70 per kg.
  • Ø  Nargis powder
  • Ø  Wood incense powder
  • Ø  Joss powder
  • Ø  Essentials oils and aromatic ingredients – The fragrance is used for getting aroma in the incenses sticks. Various scented agarbatti are available in different scents. The price of agarbatti perfume for 1 kg will be around Rs 400.
  • Ø  Packaging material’s –Also take care of tight packaging as the fragrance should not escaped from the packet. Packaging can be done in 2 ways; one is by manual hand counting packing and second is machine counting. The price of packet will be around Rs 2 to 10 and for box the prices will be around Rs 5 to 20.
  • Ø  Diluents like DEP are available for price around Rs 125 for 1 litre.
  • Ø  Wrapping paper.
  • Ø  Paper cartons.
  • Ø  Inner Paper bags.

Scope of Agarbatti business

There is a great potential market for various types of agarbatti. The demand for the agarbatti will be greater in times of festival seasons. India is among the top producer of agarbatti and suppling worldwide.  

It is used by many people all over the world in various countries like India, Nepal, USA, UK, Sri lanka and Burma. More than 100 countries used agarbatti for various purposes. As the demands are high of agarbatti, export can be easily set up and reach to various parts of the world.

There is no much training required for starting agarbatti business as it can be started at home also. In market various types of agarbatti are available in which major sticks are containing only charcoal powder and mixture of other powders, they are used for regular purposes.

Whereas in superior types incense sticks various essential oils, high quality perfume, use of amber are used in making of them.

Process for setting up agarbatti manufacturing unit 

Business registration of unit has to be done with ROC (register of companies). Applying for Trade License from local authority and legal permits. GST registration and Trademark registration is also needed.

Find the Machinery required for setting up agarbatti making unit according to your capital and space. 
For large scale registering for private limited company and for small scale apply for LLP or proprietorship. For extra benefit apply for MSME Udyog Aadhaar. Then after, you have to open a current bank account.

Pollution certificate, factory license and NOC are also required for setting large scale manufacturing unit.

For small scale agarbatti making business can be started with a capital of Rs 50000 to 80000.
For large scale agarbatti making business the cost may rise to around Rs 120000 to 150000 as the expense of raw material, machinery, staff, electricity and packaging will be more.

Agarbatti Making Machinery-

Selecting the right machinery is an important step for running business successfully. there are various factors to be considered while selecting machines in terms of production capacity, types of sticks and capital available. Space required for setting up agarbatti machine unit is around 100 to 250 SQFT. The average capacity of production agarbatti for 12 hours will be around 80 to 110 kg for automatic and for manual around 60 to 80 kg per day for 12 hours.

There are 3 ways by which the sticks can be manufactured

1.            Manual agarbatti making machines- It is having single or double pedal which helps to make agarbatti. It is helpful for starting purposes as it is having low price and no power supply required. Fine quality sticks can be also produced.  Wooden plank is used for rolling the raw materials with the help of hands.  Price of simple manual steel machines is around Rs 20000
2.            High Speed Automatic agarbatti machines - It produces sticks in the range of 300 to 400 per minute. It does not require more manpower as one person can operate the machine. Also, the length of the sticks and be easily adjust from 8”to 12”. Price of high-speed machines is around 2 lakhs.
3.            Fully automatic agarbatti making machines – Automatic machines are used for larger production. It helps to produce many different types of design, various sizes and patterns according to the customer requirements. It produces 150 to 180 kg per day. This machine run on power supply and provides higher volume production capacity.

Various other machinery is also available for better production and improve the quality-

Agarbatti Powder mixer machine- The mixer is used to produce uniform quality of paste by mixing various different type if powder (dry or wet) is mixed together easily with the help of this mixer. It saves time and labour effort. The capacity of this machines is 10-30 kg per 10 min. It makes mixing of paste easily and production output is high. The price will be around Rs 40000.

Drying machine- it is used for drying of sticks easily. It has production capacity of 150 kgs in a single shift of 8 hr. Different types of agarbatti are dried easily with the help of this machines. It operates at about Rs0.5 to Rs0.8 per kg which is a nominal cost in commercial production. It is used for large scale production Drier machine is very much helpful in times of rainy seasons. The price for drying machine will be approx. Rs 30000.
Stick making machine- Sticks can be produced according to required size and shapes.

Various website for purchasing agarbatti machinery-
Trade India.
Panthi machinery.
Shree hari traders.

Incense sticks manufacturing process

-              Mixing of powder
The making of agarbatti starts with the mixing of all the powders according to the composition forming a solid paste. Mixing charcoal powder, gum powder and Jigat powder(1kg) with water (600ml) according to ratio will form paste. Powder mix machines can be also used here. Proper mixing of powder is necessary as if the mixture will be not in correct composition then agarbatti will not burn properly.

-              Making Agarbatti
The paste is then applied to various sticks according to length set with the help of automatic machines or rolled on wooden planks by using hands. After that the agarbatti is left for dried

-              Adding fragrance
For making scented agarbatti, perfume and DEP are mixed in the ratio of 1:4. The sticks are dipped in this mixture and after drying it will be ready to pack for final process. use of butter paper bags can be make for perfumed incense sticks.

-              Packaging of agarbatti
The packaging is used for sustaining the fragrance in incense sticks for long time. packing is an aspect as the customers will look at nice, premium material and attractive packets so, select the packaging material according. You can also create a special brand and pack into your customized brand box. It will create a unique identity of your brand.

Selling of incense sticks

 Agarbatti is an aromatic powder that is used as a fumigant. It is used by various communities for household purposes throughout the year. For starting considering giving free samples to local market such as general store, friends, family and wholesalers. It is a traditional product used in every household, temples.

For offline start with local market such as provisional store, temple, perfumery shops and wholesaler.  Also, Online platforms such as Amazon, flipcart and B2B comes very useful for selling agarbatti directly to end user easily.

Once you have created a proper brand, nice looking packets also, publish various photos of your products and adding description our your agarbatti details. 8” to 12” inches of bamboo stick are commonly used.

Now the question arise that is making an agarbatti business profitable?

As the Profit margins in agarbatti making is around Rs 10 to Rs 25 per kg depending on the machinery use and the quality of the sticks made. The average profit from 1 agarbatti automatic machines running 8 hours a day will be around Rs 800. So, 1 machine can generate around Rs 20000 per month considering 25 days a month.

For better utilization of machines and increase the profit margins minimum 3 machines are to be kept. For 3 machines the profit will be around Rs 60000 – 80000 per month.
For increasing the profit in agarbatti more machines can be placed step up step after developing the market and sales. The profit margins will be higher in case of scented and premium agarbatti.

Points need to be taken care

•             Developing new fragrance and various patterns different from market. You can also experiment new fragrance incenses sticks which are new to market and easily available.it will grow your market and increase the sales easily. 
•             Set a fixed budget for marketing and promotion activities as it plays an important role for selling agarbatti.
•             Focus on online selling as currently many are preferring online sales due to easy delivery and many varieties are available. Also, interaction with your customer on various social media.
•             First focus on quality of agarbatti then after that in quantity.

Final thought

As setting up agarbatti making business does not require more investment and low risk and there is demand throughout the year. Machines are the important aspects in for successfully starting agarbatti business as the competition is very much high and in order to increase the profits and grow your market easily. Select the machinery according to the demand analysis. If you have more experience in sales then try for large scale otherwise first try with manual machinery for analysis the situation of the market.

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Disclaimer – This information is non promotional, created only to provide information about any business and start-up. You must research yourself before start any business. This information is only for educational purposes. New ideas 4 you are not responsibility for the accuracy, content, legality or reliability of the information mention in the video and does not accept any liability. It’s all depends on your business strategy and your hard work. You must research yourself before start any business.

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