Agarbatti manufacturing business can make you profitable as its demand is always high, with almost every religious celebration, prayer, and gathering using agarbattis.
Agarbatti
Agarbatti Making Business, Requirements, Investment, Profit and Marketing
Incense sticks, or Agarbatti Making is a good business idea for a living, nowadays you can find Agarbattis in almost every home, which means the product has a good market. You can set up a small Agarbatti manufacturing plant at your home or somewhere nearby with a low-cost investment. You can trade your product through your own shop, at your nearby houses or shops, and you might also find your customers online by creating a website. Various banking institutions also offer loans to start an agarbatti business, contact your nearest bank for detailed information.
Agarbatti manufacturing business can make you profitable as its demand is always high, with almost every religious celebration, prayer, and gathering using agarbattis. India is the top country manufacturing these divine smoke sticks for over 160 countries in the world. In this article, we share information on how to start an Agarbatti making unit, how one can make a profit out of your business.
Market Potential and Uses of Agarbatti Making Business
Agarbatti or incense sticks is a product that is mostly used in places of worship, and almost every house, places of yoga, and meditation uses this on a daily basis., It is also a product that holds an essential part of the rituals in Hindu tradition all over the world. It is also a fast-selling product from the market, so we can guess its trade potential, and it plays a huge part in the economy. Nowadays, India exports agarbatti to more than 160 countries worlwide.
Types of Agarbattis Available in Market
Agarbattis can be categorized into different grades like Average, Good, and Premium based on its fragrance and the quality they provide. As their main use is to spread the fragrance, these aroma sticks are available in the market in a variety of fragrances, one can purchase them from the shops according to their favorite smell.
Also visit: 50 Most Profitable, Trending Small-scale Business Ideas for You
Uses of Agarbattis
Their main use is to spread its fragrance to the surrounds of a room, building, or wherever it uses. In India, every religious gathering conducted in the home, devotional places such as temples, or any public place, some Mosques, Budha culture, ceremonies like marriages, deaths are widely using these aromatic sticks.
Licenses Required for Agarbatti Making Business
To start an agarbatti manufacturing business, you need some licenses from various departments, we listed below all the licenses required to start your own agarbatti making unit, keep in mind that the business permit may differ from state to state. So, it is advised to make sure what are the rules to start an agarbatti making business within your state.
- Company Registration
- Factory License
- EPF Registration
- ESI Registration
- Trade License
- GST Registration
- SSI Registration
- Pollution Certificate
Factory License is mandatory for large-scale manufacturing units. If your establishment is having 20 employees you have to apply for EPF Registration and with more than 10 employees ESI Registration is necessary. And SSI Registration is only required if you having an SSI unit.
Investment and Profit of Agarbatti Manufacturing Business
Agarbatti making business a functional production area, which can be set up at home in the traditional handmade unit on a small scale investment, and as a separate production unit with large scale investment on an industrial level. For an agarbatti production unit, it may cost an initial investment anywhere between Rs 30,000 to Rs 10 lakh depending on your production level.
Agarbatti making is a very profitable business in the production industry, a basic home-based setup with one machine could make you earn Rs 500 – 700 as profit per day. As the production level increases, the turnover increases and the production cost decreases, and the profit of any business is proportional to the total production of the product, and the availability of the raw materials. Even so, the final profit you can earn depends on branding and marketing strategy.
Total Area Required for Agarbatti Making Unit
Agarbatti manufacturing business does not requiters any complicated setup, as it can also fit for a home business, a very small space is required for the functioning of an agarbatti making unit, the total area required depends on the total machines required to start a unit. The transportation facility is another main part as important as the space of the business, so make sure your unit has a transportation facility.
The Raw Materials Required for Agarbatti Making Business
To make agarbattis you require raw materials such as Charcoal Powder, Gum powder (Sticky Powder), Nargis Powder, Bamboo sticks, Jikit powder, Sawdust, Crude Paper, Perfumes, some kind of aromatic ingredients and oils, sandalwood oil, different type Color Powders (to make colorful agarbattis), and Packing materials.
Price & Production Capacity of Agarbatti Making Machines
| Production Capacity | Min Price | Max Price |
|---|---|---|
| 1-5 kg/hr | Rs 20000/Piece | Rs 90000/Piece |
| 10-15 kg/hr | Rs 57000/Piece | Rs 105000/Piece |
| 15-20 kg/hr | Rs 65000/Piece | Rs 165000/Piece |
| 20-25 kg/hr | Rs 70000/Piece | Rs 95000/Piece |
Marketing Tactics for Agarbatti Manufacturing Unit
After making the final product it must advertise to reach its end-user, advertising helps to get proper buyers for your product and to sell it on market. Agarbattis have a great market abroad as well as in India. As an entrepreneur, you can advertise your product on various public platforms including online, offline, visual, and print media.
Are you a business owner looking to advertise your business online?
Read this article to know different advertising methods. Or write to us, to feature your business in our premium business listing, it also generates more genuine customers for you.
