This article explains how to start a small Agarbatti business with minimal capital. It includes a business plan guide.
The Agarbatti venture is among the most lucrative times-honored small-scale businesses in Asia, mainly in India. ‘Agarbatti’ is the Hindi term for incense sticks.
People burn Agarbatti for spiritual affairs and to use them as aromatherapy during meditation and yoga. Being a consumer product that can be obtained throughout the year, the need for Agarbatti increases during the festive seasons.
An Agarbatti-making business can be started on either a small or home-based scale, depending on an individual’s investment capacity.
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6 Step Agarbatti Making Business Plan
To begin a successful Agarbatti manufacturing business, here are some important steps to follow:
1. Create a Business Plan
When launching an Agarbatti-making business, it is essential to map out a business plan. Choose the type of Agarbatti you would like to produce and pick the appropriate machines accordingly.
Before starting a business, it’s wise to create a business plan, calculating both the fixed capital investment (e.g., machinery, plant) and working capital investment (e.g., manpower, raw materials, promotional cost).
Set business goals and build a marketing plan. Additionally, you should create a business plan to get funding for your venture. Come up with a catchy name for your product as well.
2. Make your Agarbatti Making Business Legal
Figure out the legal structure of your company and register it accordingly. Decide what type of business model your Agarbatti-making venture will follow.
If you are thinking of launching a business in India, typical structures include proprietorship, partnership, LLP, and Private Limited Company.
Before beginning an Agarbatti manufacturing business in India, it is necessary to obtain Factory License, Trade License, Pollution Certificate, and GST Registration from the local authority.
3. Selecting Agarbatti Making Machine
Depending on your plan of action, choose the machinery needed for Agarbatti production. Most usually, two types are used: semi-automatic and fully automatic.
The semi-automatic Agarbatti-making machines usually yield 30-35 kg, while the automatic ones produce 65-70 kg per day. Typically, 150-180 sticks per minute can be made from these machines.
For a successful Agarbatti-making business, it is essential to select the right machines that fit your desired length, output, and quality.
4. Raw Material For Agarbatti Making Business
Making Agarbatti requires bamboo sticks, Charcoal dust, Jigat Powder, Nargis Powder, Wood Incense Powder, Joss Powder, and various essential oils which need to be selected according to the desired aroma.
Take notice of the container. A fragrance seal packing system is a key factor in perfume stick production. An appropriate cardboard box will be necessary for wrapping and packaging. One can acquire the raw material either from a dependable supplier or a wholesale store.
The following items are needed to make Agarbatti Sticks: basic raw materials.
- Bamboo sticks
- Aromatic chemicals
- Essential oils (Sandalwood)
- Gelatin papers
- Perfumes
- Sawdust
- Jagat Powder
- Joss Powder
- White chips
- Giga
- Packing materials
- Charcoal
- Nargis Powder
5. Cost of Starting Agarbatti Manufacturing Business
The cost of starting a business in India mainly depends on the production output. In terms of a smaller scale, it can require an investment from
6. How to Sell Agarbatti?
Establishing a successful Agarbatti business involves developing an extensive distribution network starting with local distributors. Contact retailers and promote your product to create supply chains.
Research the types of Agarbattis preferred in Asian and Middle Eastern markets, then build a website to enable customers from those locations to contact you.
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