So you are thinking to start the agarbatti business right? In this article, I have given detailed information about how you can start agarbatti making business from small scale to high scale. Also, you can start this agarbatti business from your home too.
Starting agarbatti also known as Incense Stick business isn’t hard and it’s the most profitable small business idea for Asian countries. The demand for scented agarbatti is always high in India, Pakistan and Bangladesh etc. In Asian countries, agarbatti is widely used for religious purpose but few know that it also has insecticidal and antiseptic properties. Agarbatti is mainly a thin bamboo stick coated with aromatic paste and size about 6 to 16.
1. Market Potential & Research
Before initiating agarbatti making business it’s important to analyze the market potential for the business. Also, finding out the best selling agarbatti of your state will help you decide the type of agarbatti you are going to start.
Almost every Asian country uses agarbatti every day and on occasions, the demand increases rapidly. Also, India exports about 50% agarbatti around the world to fulfill their requirements. The demand for agarbatti is not only in Asian counties but it’s been speeded all over the world.
Keep in mind that there are already big companies like Patanjali, Subhangali, Hari Darshan etc are doing the business on large scale. But with proper plan and initiative, you can start this business from small scale too
2. Investment for Agarbatti Making Business
Nothing to like but Initiating agarbatti business requires capital. Firstly, you have to decide the type of agarbatti making business you want to start. You can start agarbatti making business from home or you can set up an agarbatti making project with few types of machinery. There are mainly 2 types of investment in agarbatti making business. 1) Fixed cost investment which includes all types of machinery. 2) The second is variable investment includes raw materials, rent of the room, the salary of workers etc.
Although with a proper project plan you can apply for the loan. But I would recommend you to start the business with your savings.
3. Business Plan for Agarbatti making business
To start agarbatti making business it’s very important to have a written business plan. Firstly, you have to decide the type of agarbatti you are going to manufacture then as per require you should choose machinery.
It’s advisable to have a written stepwise plan for everything. Starting from the investment arrangements to selling the product. Popper strategy of machinery, production, and marketing will boost your business to the next level
4. License for Agarbatti Business
- Brand Registration: firstly, you should register your company name for a brand name
- GST Registration: It’s very important for every business to get a GST number.
- MSME Udhyog Adhar
- Trade License: You can apply for trade license from your local authority. Factory License: For larger commercial companies it’s important to have a factory license too
5. Raw materials for Agarbatti Making Business
The base of agarbatti is bamboo sticks which you can find easily in the market. The raw materials are different for each type of agarbatti but the main raw materials needed for agarbatti making business are:-
- Bamboo sticks
- Charcoal Power
- Jiggat Powder
- Fragranced oil
You can check the price of raw materials and machines at Indiamart.com
6. Machinery for Agarbatti Business
For agarbatti making business it’s very important to select the proper machine for your business. You can select the machine according to your budget as well as production capacity. There are many types of agarbatti making machines available in the Indian market. Like manual agarbatti making machine, automatic agarbatti making machine and high-speed automatic agarbatti making machines. Also, for commercial agarbatti making business you have to purchase a powder mixing machine and an agarbatti drying machine for quick and reliable production.
Semi-Automatic Machine: for a medium range of production semi-automated agarbatti machine is used. It requires a skilled worker to handle and cost electricity.
Fully Automated Machine: for large production fully automated machine is used. This machine is fully automated and doesn’t require any worker to operate. Also, it comes with powder mixing capability which helps in mass production.
Powder Mixing Machine: this machine helps in mixing all ingredients equally which will reduce your labor cost.
Drying Machine: it is optional but if you want to continue your business in the rainy and wet season then it will help in drying the agarbatti
Packaging Machine: For large quantity, a packaging machine is also required.
7. Agarbatti Making Process
Agarbatti manufacturing is a very simple and easy process.
- Firstly, you have to prepare the mixture for agarbatti production. For agarbatti making, you need to mix charcoal powder, Jiggat powder, Sandalwood powder and sawdust in a steel bucket. In 1-kilo premix powder you have to add 650ml water for a thick agarbatti base.
- After the powder mixture is ready you have to transfer it into the bucket attached with the machine and it will automatically start producing agarbatti
- Once your raw agarbatti is ready you have to dip it into the perfumed solution (diluted with D.E.P)
- Next step is drying the agarbatti. You can just leave them under the fan for drying or you can use agarbatti drying machine for quicker process
- The final step is packaging. It’s very important to have an attacking packaging for your agarbatti. Many people choose agarbatti according to their packaging so pay attention there. Also, you can make custom printed packaging for your brand name.
8. Marketing and Selling of Agarbatti
Agarbatti making is a very profitable business idea. There are many marketing strategies for selling this agarbattis. You can directly sell your raw unscented agarbatti to any other company and they will apply their scent and brand name for selling it. If you want to sell them with your brand name then you should contact your local agarbatti distributor also you can ask grocery shop, malls etc for selling. Gradually you have to will build a customer base and then you can expand your business.
Final Word: In my opinion starting agarbatti making business is highly profitable but I would advise you to have some experience before jumping into the business. You should have knowledge of how the agarbatti industry works. The only genuine way to get this knowledge is by working in this industry for at least 1-2 years.
After you get the experience of the industry you should draw a plan how you are going to initiate the business for yourself.
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