An agarbatti represents not only a stick of incense but also a significant component of the religiosity, culture and spirituality of India. It is practised everywhere before going to school or during temple rituals. These sticks are routinely burned in most Indian households. Sticks of incense are now gaining consideration internationally too. Exports are being made to the USA, UK, UAE, Malaysia and Japan. There is a rising trend toward consumption which gives excellent business prospects to micro and small enterprises in India.
Agarbatti business is a low capital and high profit business. The returns are enormous as it is labour intensive and has immense employment generating scope. There is no limit to what can be achieved if you start with branding and automation. In case you are in search of a traditional business with unending requirements and demand, the Agarbatti Business could make an excellent venture.
In this step by step guide, we’ll discuss the entire process of starting an Manufacturing agarbatti business in India. That includes the raw materials and equipment needed as well as projections on expenditures and relevant business marketing strategies. In addition, we’ll provide details on contacting NIIR Consultancy Projects for help in building an impactful, scalable brand with the incenses.
Scope and Market Possibility of Agarbatti Business
With India leading the way, she holds 70% of the global incense stick market, dominating the industry. The domestic sales for Agarbatti Business is evergreen locally, due to daily rituals of worship, aromatherapy, meditation, yoga, and annual festivals. Both urban and rural regions are steadily growing in demand and the market is expanding steadily. The predicted growth rate for the Indian Agarbatti Business is over 9% CAGR and is expected to reach by 2026 ₹12,000 crores.
Increased international sales have also provided a boost to this market. There has been a tremendous increase in agarbatti, dhoop, and perfumed incense products imported by countries which have a significant Indian diaspora and interest in Ayurveda and spiritual practices. New market entrants can benefit from government sponsorships under MSME Development Scheme, the Agarbatti Artisan Welfare Program, and duty rebates on exports.
NPCS has prepared several project reports and technical feasibility documents for agarbatti manufacturing units which help in completing detailed insights. NPCS also avail step-by-step assistance in calculating market, assessing dynamics and investment worth.
Materials Needed to Produce Agarbattis
The making of incense sticks entails precise blending of raw materials. The main ingredients are listed below:
- Bamboo sticks – The base of the incense stick. Its width and length vary. They are mostly imported from Vietnam or China, but Korea is also beginning to cultivate local bamboo.
- Charcoal powder – A powder that serves as fuel for the paste mixture.
- Jigat powder (also spelled as Jeegat or Joss powder) – A wood or bark powder binding agent, it is important for the formation of the stick paste.
- Wood powder or sawdust – Forms bulk and body for the agarbatti paste.
- Perfume or fragrance oils – Dipstick’s scent profile is infused with conventional sandalwood and rose oil but is expanded to lavendar, lemongrass, and other synthetic fragrances too.
- DEP (Diethyl Phthalate) – An ingredient that is used to mix perfume uniformly and improve suppleness.
- Coloring agents (optional) – Used for incense sticks that are colored so that they can be used for adornment or specialized export packs.
All these materials are easily available in the Indian Market and numerous suppliers sell at wholesale prices for manufacturing units. The retail value of finished agarbattis is significally higher than the cost of these materials especially when sold abroad.
NPCS’s project reports provide forecasts in the form of a bill of materials for every production run, allowing you to efficiently manage breaks in inventory availability and minimize wastage.
Related: Incense Sticks Production. Agarbatti Manufacturing Business Plan. Profitable Small business Idea
Agarbatti Products You Can Manufacture
There are various types of agarbatti products you can manufacture. These include raw agarbatti sticks and masala agarbattis. Before the entrepreneurs begin production, they need to make a decision on which type of agarbatti to manufacture, taking into consideration the non-negotiable market requirements, available equipment, and required investment level.
Types of agarbatti include:
- Machine-made raw agarbattis – Unscented sticks produced in bulk and to be later dipped in fragrances. Raw agarbatti sticks dipped in fragrances are ideal for high-volume B2B supplies.
- Scented and perfumed agarbattis – Essential or synthetic oils are used on these products, which are ready to pack and usually sold in consumer markets and retail stores.
- Dhoop sticks and cones – Thicker and long lasting, these variants are made without bamboo sticks. Usually, they are used during special rituals and have niche demand.
- Masala agarbattis – These are hand rolled and made by using paste comprising natural and aromatic herbs. These are premier premium products sold at high price points, particularly in exports.
- Herbal and organic agarbattis – Free of synthetic ingredients, these are targeted at eco-friendly consumers.
NPCS guides clientele to ensure they choose the right mix based on demand across regions, COGS, and availability of markets, serving to price band, audience, and production approach.
Technology and Equipment Needed To Start An Agarbatti Production Business
The equipment needed will vary with the size of your business and your degree of automation. Smaller businesses usually do manual rolling while bigger units like to have automatic or semi-automatic machines. The major machines include:
- Agarbatti Making Machine – Comes in manual, semi-automatic and fully automatic types. A single fully automatic machine can easily output up to 200 kg of agarbatti in a day.
- Chamber Dryer (or Sun Dryer) – Used for drying agarbattis after they have been processed. Controlled climatic dryers are preferred as they provide consistency and eliminate idle time during the monsoon seasons.
- Perfume Dipping Tank – Used to dip raw sticks into fragrance oil. This one is made from stainless steel and has a drainage feature along with drying racks which allow odor free detritus.
- Powder Mixing Machine – Guarantees uniform mixing of charcoal, jigat, wood powder, and binding glues together.
- Packing and Sealing Machine – These machines are made for pouch and box packing of the finished sticks. These pouches can also be branded along with being poly packeted.
Small setups may begin with one machine and gradually scale up aditioning equipment. NIIR Project Consultancy Services makes equipment selection easier by offering detailed cost and supplier comparisons. This allows you to find the most suitable machinery for your requirements.
Manufacturing An Agarbatti Step By Step
The entire procedure is simple. It is important to maintain quality and uniformity through the steps. The steps comprise of the following:
- Mixing – It involves combining charcoal, jigat powder, and sawdust in precise ratios with water to make a smooth paste.
- Rolling or Extruding – Either manually or with a machine, the paste is rolled onto bamboo sticks. The thickness and length must be uniform to ensure proper burning performance.
- Scented oil or perfume mixtures are applied to the dried raw sticks in small batches and dipped. This is known as Foreshowing.
- Final Drying – Sticks that were previously scented are left in a well ventilated room till the placed scent properly settles.
- Packing – The sticks are put into piles for efficient shelving. They are then sealed in branded pouches or boxes ready for retail or wholesale.
Moreover, quality testing is done for burn time, smoke and scent volume, and fragrance over time during every stage to make sure the standard is acceptable. NPCS offers system skeletons for business processes and steps to follow in their documents.
Related: Agarbatti (Incense Sticks) Manufacturing
Cost Analysis and Investment Requirements
The initial cost of starting an Agarbatti Business (incense stick) making unit differs according to the type of automation, the scale of production, and the end products. The apparel industry can commence on a small scale by purchasing a semi-automatic machine at ₹3-5 Lakhs which includes more than just the machinery. It also includes payments for branding, raw materials for the first few months, and packaging.
Setup costs are higher for more advanced units. Medium-sized manufacturing businesses that plan to have 2-3 machines and an in-house perfume mixing facility would need to invest up to ₹15 Lakhs. This would include all machinery expenses, raw materials for 3 month, utilities, rent, marketing, and even housing the work area.
Sales margins also vary depending on the production. NPCS project reports are said to offer ranging between 25% – 40 % profit for agarbatti production with scope. Branded sticks fetch higher profits but increased packaged and marketed shipped direly to customers.
NPCS project reports also provide assistance on breakeven analysis, ROI timelines, financial forecasting, and even funding like MSME loans and SIDBI aid.
Marketing and Branding Strategy
For success in the agarbatti business, entrepreneurs need to expand their focus from production alone and consider distribution and branding. You can sell your products through:
- Wholesale distributors in temples, religious stores, and general shops
- Your own D2C website or subscription-based delivery
- Yoga centers, ayurvedic spas, and meditation retreats
- Online platforms like Amazon, Flipkart, and Meesho
- Export markets through trade fairs and online B2B portals
Consistent quality in fragrance, brand storytelling, and packaging design are key for fostering customer loyalty. The business can make added revenue from seasonal offerings (e.g. Diwali specials), gifting sets, and combo packs.
NPCS provides templates for:
- Export documentation
- Trade directory listings
- Branding and packaging insights
These are crucial for penetrating the global market.
How NIIR Project Consultancy Services Can Assist You in Starting an Agarbatti Manufacturing Unit
NPCS is the foremost consultancy in India for industrial and manufacturing projects. With many years of experience, NPCS provides end-to-end solutions to clients looking to start an agarbatti business.
NPCS offers the following services:
- DPRs with financial modeling, market analysis, competitive analysis, and production planning
- Custom Plant Layout Design with spacing and workflows that increase productivity
- Sourcing of Machinery and Equipment, including vendor lists and quotations
- Feasibility Analysis and Break-even Planning
- Guided Exports, including participation in trade fairs, income demand, trends, and certifying documents
If you are starting with one machine or considering a full-scale branded line of perfumed agarbattis, NPCS is there for every step with clear and precise expertise.
Conclusion: Transforming a Scent into an Everlasting Business
Agarbatti manufacturing is an extraordinarily scalable Agarbatti Business as it blends fuels a timeless tradition, boasts a low-risk investment, with the potential for earning a high margin. Ideal for:
- First-time business owners
- MSMEs
- Someone seeking to dip their feet into the fast-moving consumer goods industry
- Spiritual goods manufacturers
This model proves to be sustainable with low barriers to entry, unremitting demand, and ample room for innovation—including infusion of new fragrances and packaging design.
Accompanying expert consultancy and strategic planning transforms this modest incense stick from a mere product into:
- A brand
- An income-generating enterprise
- A worldwide item proudly derived from India
NPCS will assist you as a partner in this endeavor and will provide tailored, accurate, and deep insights into your business needs. Your agarbatti business is not only about scent but about sharp concentration and meticulous planning to achieve success.
