Is Agarbatti making business profitable?

Investment, steps, tips, profits & more

India is a country where rituals and religious functions are of paramount importance. The people of India are very religious. They celebrate all the festivals with a lot of pomp and show. Each festival is associated with some God, and people pray to God on festive occasions as well.

Agarbatti or incense sticks assume a significant place in all the prayers and religious as well as social functions. People use Agarbattis during pujas and religious ceremonies. Hence, the Agarbatti or incense sticks business is a very lucrative idea for new entrepreneurs. It is among the most profitable new business ideas in current times.

Investment Requirements for starting an Agarbatti Business

Finance is the spinal cord of any business. For a sound Agarbatti business plan, it is imperative to assess the investment requirements. The initial investment requirements for starting an Agarbatti business are not very high. You can start Agarbatti manufacturing with an initial capital of Rs. 10 lacs and then reinvest the profits earned to expand your business’s scale gradually.

You can start making Agarbattis at home, or you can use the space if you have to install the Agarbatti making machine and carry out the production of Agarbattis there.

It is one of the best business ideas for individuals who have less capital and want to start on a small scale. You should record all the financial transactions regarding the income and the expenditure to assess the financial viability of your business.

These days, several apps like Okcredit are used to record financial transactions, streamlining business operations digitally. Agarbatti making business is among the most profitable small scale business ideas as the return on investment is very high in this business.

Incense Sticks Business Plan

If you want to know how to start an Agarbatti business, you can take the help of the following incense sticks business plan. The plan provides insights and valuable tips about the Agarbatti making business which has a high return on investment and great profit potential. The following steps are required to set up an Agarbatti manufacturing unit:

1. Buy Agarbatti making machinery: The first and the foremost step is to buy the required machinery for making Agarbattis. Though Agarbattis can also be made manually, handmade Agarbattis would consume a lot of time and labour and would not be very profitable. Hence, you should buy the Agarbatti making machine for your business. As most of the suppliers of

Agarbatti machines are in Gujarat, it is important to select a buyer who provides service in your city. You should buy at least three machines to start your business on a small scale. The cost of a standard machine is around Rs.1.5 lac.  The cost varies according to the production capacity and speed. A standard machine of good quality produces around 100 kg of raw Agarbattis if you run it for 12 hours.

2. Source raw materials: The next step to start an Agarbatti manufacturing business is to arrange the necessary raw materials for the production of Agarbattis. The chief raw materials used in Agarbatti production are bamboo sticks, gum powder, charcoal powder, perfume essence, jikit powder, etc. You can easily procure the raw materials from the local market of your city.

3. Installation of machine: Once you have bought the machines, you need to get the machines installed in your factory. A technician would visit and install the machinery at your place. The machines do not occupy a lot of space and are very simple to operate. The technician would guide you on how to use the machines.

4. Hiring people: Whether it is Agarbatti making business or any other business, a skilled workforce is the key to success. It is important to hire a dedicated and devoted human resource to operate the machines. One person would be required to work on one machine to use it to the optimum production capacity.

The workers need to be trained as well to work on the Agarbatti making machines. If you are starting with three machines, you would need three persons to work on the machines.

Apart from these, you would require three more persons to make the mixture, drying, and packing the Agarbattis. You can easily track and record the performance of your staff by using user-friendly apps like Okstaff and monitor their attendance as well online. These apps are very beneficial for start-up businesses as they are easy to operate and smoothen the business processes.

5. Production of Agarbattis: For producing the right quality of Agarbattis, it is extremely crucial to prepare the right mixture, which is the perfect blend of the required raw materials. If the mixture is inaccurate, the Agarbattis will not bun completely. It is important to produce superior quality Agarbattis to build goodwill in the market and acquire more customers.

6. Collection of Agarbattis and drying them: Once the Agarbattis have been produced, one person would be needed to collect the Agarbattis and dry them. You can use the drying machine if you do not get adequate sunlight in your factory. The drying machine would cost you around Rs. 30,000.

7. Fragrance addition: In the beginning, you can sell the raw Agarbattis to companies that add perfumes to Agarbattis. You can also choose to build your own brand and add perfume yourself to your Agarbattis. You need to do research and add novel perfumes to create a distinct image for your brand. You can add different fragrances like mogra, chameli, rose, sandalwood, etc. Fragranced Agarbattis are highly in demand, and you can market your Agarbattis to grow your Agarbatti business.

8. Packaging: You can pack your raw Agarbattis in jute bags and sell them to the companies for adding the fragrance. But, if you want to sell the Agarbattis in your brand name, you need to pack them attractively in boxes with your brand name on them.

Profit Potential of Agarbatti Business

Agarbatti business is a unique business idea with a high-profit margin with low capital requirements. The return on investment in the Agarbatti business is very high, and you can easily make a profit of Rs. 20,000 from a single machine in a month. If you have three machines in the beginning, your profit would be around Rs. 60,000. You can further increase this profit if you add the fragrance yourself and market your product effectively to the customers under your brand name.

Valuable Tips for starting an Agarbatti Business

• Conduct market research
• Buy good quality machines
• Hire skilled labour
• Promote your business online
• Build a brand image for your product

If you are looking for some small business ideas that you can use to start as an entrepreneur, Agarbatti making business is a wonderful opportunity to explore the hidden potential and reach the pinnacle of success in a short period.

Also Read:

1) Is Paper Cup and Paper Plate Business Profitable?
2) Is the Interior Decoration Business Profitable?
3) How Profitable is the Frozen Food Business in India?
4) OkCredit: Simple, Paperless & Secure solution for businesses

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FAQs

Q. What is the initial capital required to start an Agarbatti business?

Ans. The initial capital requirement for starting an Agarbatti business is around Rs. 10 lacs.

Q. How can I promote my Agarbatti business?

Ans. You can promote your Agarbatti business by advertising in the local markets. You can also use the digital platform to promote your business.

Q. Is the Agarbatti business profitable?

Ans. Agarbatti business has high-profit potential. The return on investment is high, and it is very profitable. You can easily earn a profit of Rs. 50,000 per month in the beginning.

Q. How much does an Agarbatti making machine cost?

Ans. The cost of a good quality Agarbatti making machine is around Rs. 1 lac to Rs. 1.5 lacs.

Q. Should I sell raw Agarbattis or add fragrance and sell them under my brand.

Ans. In the beginning, you can sell raw Agarbattis, and then after gaining a little experience, you can market them under your brand name after adding fragrance.