How To Start Agarbatti (Incense Stick) Making Business in India

Incense sticks have been popular in India and some other countries for centuries.

It is quite a large business today, and tremendous improvements have taken place in the industry since its initiation.

The field of incense stick making business is profitable, provided you follow the right steps.

The first step in this traditional business is, without a doubt, research. 

Conduct Market Research

A crucial factor in market research is determining which type of incense sticks are popular in the market and area. There are a lot of aromas available, and each region favours different ones. With proper research, you may also be able to export your product after some time.

Make A Project Outline

A project outline is made based on all the factors involved in the business. In this case, your project outline includes the cost of machinery, space requirements, storage units, labour wages, raw materials and utility bills.

This outline will give you an estimate of the monthly costs and returns for your business, so make sure to hire a professional to help you with it.

A professional will give you a customized project outline tailored to your personal needs and limits. 

Get Your Finances in Order

Starting an incense stick making business requires a big chunk of investment.

You will have spent a considerable sum on raw materials themselves before you sell anything. The project outline you made earlier will give you a rough estimate of how much investment.

Advisable is to start small and grow your business in the local markets and then apply for a loan once your business generates enough revenue.

Registration and Licenses

Make sure to check the local laws and taxes for this business. You will need a proprietorship or partnership formation in addition to a ROC registration.

Some other crucial registrations include Trade License and MSME Udyog Aadhaar and a GST number for taxes. Check the PF AND ESI Act if you are employing more than ten workers. Make sure to fulfill all the requirements of NOC from the Pollution Control Board office of your state.

Prepare The Manufacturing Unit

Your incense stick making unit should have sufficient water and electricity supply. Initially, you can rent a place if you do not have space for small-scale production. It will reduce your overall production cost and increase ROI.

It is crucial to buy the right machinery for your business. There are manual, semi-automatic, and automatic machines for making incense sticks.

Choose the machinery depending on the size of your business. Manual machines are suitable for small-scale businesses, semi-automatic for start-ups, and fully automatic for large-scale production. 

An incense stick making unit has a mixer, grinder, incense sticks making and drying machines, packaging unit, wooden tables, weighing balance, etc.

The aroma is a deciding factor for profit, so make sure to develop an incense stick formula beforehand. In India, packing different incense sticks in one packet is popular.

Make The Incense Sticks

The raw materials for making incense sticks are charcoal powder, white chips, and Gigatu. These are mixed with water to form a thick paste and applied to them using hands or machines.

Then they are dipped in an aromatic compound, essential oils, and some solvents such as diethyl phthalate.

Lastly, the dried and packed in a way that will block any moisture from entering the packet.

Market Your Incense Sticks

The procedure is straightforward, grab every opportunity to promote your products. Make sure that you know your competitors and the factors which set you apart from them.

You might have to do a few giveaways as most people in India are hesitant to try different brands. Remember that the price and the aroma of your incense sticks will make or break your customer relations.

Create an online as well as an offline presence for your incense stick making business. 

The cultural significance of incense sticks has caused tremendous growth in its market. Remember that a unique and soothing fragrance will appeal to the masses, so there is a need to be creative in this industry.

Moreover, you also have to make sure that your raw materials do not have anything that may cause irritations to the respiratory system.

Leave a Comment