AGARBATTI

INTRODUCTION
The burning incense in religious and social functions has been practiced in India
since early times. Agarbattis are obtainable in different colours and with different perfumes. The burning time of
agarbatti varies from 15 minutes to 3 hours depending on quality and size. Majority of agarbattis manufactured are
of cheap quality containing only charcoal powder, low quality sandal wood powder with wood gum powder.
Agarbatti industry is labour intensive cottage type of traditional activity in India. The main marketing centres are
situated in Mysore and Bangalore in India. It can be taken up in rural areas without any difficulty. It requires only
low technology for manufacturing the agarbattis. It is a product of National pride.

MARKET
Agarbattis are used by many communities in India daily for performing puja. Agarbattis are also used in some of
the foreign countries. Hence, it has good
demand. This industry can be set up with less investment in small areas.
There are about 10,000 agarbatti manufacturing units in the country including tiny,
small and medium, besides another 200 well-established ones having over 50
branded agarbattis. Nearly 12 lakh people are directly or indirectly employed by the
industry.

MANUFACTURING PROCESS
Charcoal powder, white chip powder, jiget powder, sandle powder are mixed using water and dough is made.
Dough is rolled on bamboo sticks normally. Raw
agarbattis can be perfumed either by dipping in perfumed or by spraying the
perfumes on the raw agarbattis.

COMPETITORS
ORGANISED SECTOR-Cycle, HEM, ITC,Mangaldeep sells through 5 lakh retail outlets in the country and its
sales volumes has increased from 50 million sticks per month to 100 million sticks now.
UNORGANIZED SECTOR- Sankranti, Ananth and Jayanti Domestic Products
(all from Bangalore), Cottage industry of Aurobindo Ashram, Pondicherry, Prayer
Dhoop Agarbatti (New Delhi), Swastik Industries (Chandigarh), Jayanti Products
(Agartala) and Khadi and Village Industries Commission (KVIC) mainly Coimbatore.

EXPORT
India’s exports of agarbattis in 2005-06, as may be seen from the table, shot up
steeply by 21.68 per cent when the same reached a level of Rs. 247.42 crore over
Rs.203.33 crore in the previous year. Country-wise export trends reveal that USA continues to be the largest
market.

SWOT
STRENGTHS
-Eco-friendly product
-Small area required
-National Pride
WEAKNESS
-Labour dependent as there is barely any machinery used.
-Climatic conditions as the raw materials are produced only in cool and dry areas like Mysore and Banglore and
Pune.
Sale fluctuations due to off season which is from mid December to mid May.
OPPORTUNITIES
Increasing Demand as India is a religious country where people will always use it for pooja’s and during festivals
Export as there are many NRI’s abroad and there are not many countries manufacturing agarbattis.
THREATS
Substitute Products-dhoop and loban
Huge Competition from unorganized and organized sectors.

NAME OF INDUSTRY- JAI SUGANDHALYA

Ι CONSTITUTION
-It is a sole proprietorship
- Number of employees is 10 where the employees in the packaging department are paid on the bases of piece
wages. i.e 10paise per packet or a salary of Rs.4500
- The employees in the manufacturing department are paid Rs.3000 per month
- Vyakti Vikas Kendra,is a non-profit organization where over 100 village women are gaining training in rolling
agarbattis.
-The organizational structure is flat where Mr.Jai Rao is the owner with 10 people working under him in the
packaging, delivery and manufacturing department.
- The turnover is invested back into the business after deducting interest.

II REGISTRATION

Provisional Registration Certificate (PRC)

• This is given for the pre-operative period and enables the units to obtain the term loans and working capital
from financial institutions/banks under priority sector lending.
• Obtain facilities for accommodation, land, other approvals etc.
• Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board,
Labour Regulations etc.

Permanent Registration Certificate

Enables the unit to get the following incentives/concessions:

• Income-Tax exemption and Sales Tax exemption as per State Govt. Policy.
• Incentives and concessions in power tariff etc.
• Price and purchase preference for goods produced.
• Availability of raw material depending on existing policy.
• Permanent registration of tiny units should be renewed after 5 years.

Procedure for Registration

Features of the present procedures are as follows:

• A unit can apply for PRC for any item that does not require industrial license which means items listed in
Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption Notification.
 Units employing less than 50/100 workers with/without power can apply for registration even for those
items included in Schedule-II.
• Unit applies for PRC in prescribed application form. No field enquiry is done and PRC is issued.
• PRC is valid for five years. If the entrepreneur is unable to set up the unit in this period, he can apply afresh
at the end of five years period.
• Once the unit commences production, it has to apply for permanent registration on the prescribed form.

The following form basis of evaluation:

• The unit has obtained all necessary clearances whether statutory or administrative. e.g. drug license under
drug control order, NOC from Pollution Control Board, if required etc.
• Unit does not violate any locational restrictions in force, at the time of evaluation.
• Value of plant and machinery is within prescribed limits.

Unit is not owned, controlled or subsidiary of any other industrial undertaking as per notification.

III CLEARANCE

IV SHED
-Location Material Index: The industrial estate is on a 500 sq feet rented plot which is closer to the supply of raw
materials in comparison to the market. Hence the location Material Index will be more than 1.
-Disposal of waste: The waste does not need to be treated as it is not hazardous to the environment and it is
disposed at the outskirts of Banglore at Athivali Taluk.

V Personnel factors:
There is no union as there is no middle management and the number of labourers are so few hence it is not union
dominated. 4 people are employed from Vyakti Vikas Kendra for manufacturing, 2 from local area, 2 experienced
trained labourers for packaging and 2 labourers for delivery.
Ammenities to employees: The employees are provided with a mask so that they do not inhale the bad odour. Any
accidents that occur at the workplace while doing the job are paid for.
Industrial Environment:

VI INFRASTRUCTURE
There are two types of infrastructure i.e physical and social infrastructure
Physical infrastructure: Rented land, Wooden Planks for rolling, weighing balance, hand sieves, plastic trays,
buckets, mugs, wooden racks, blending vessels, delivery cycle and raw materials.
Social infrastructure: Masks provided for safety, Aid provided for on job accidents, Drinking Water.

VII MARKETING STRATEGY

Our motto:
The motto of our company will be to provide high quality, long lasting agarbattis at the most competitive prices
within the stipulated delivery period. Service with a smile and the customer is never wrong.

-Sell through distributor in tapped and untapped sectors (starting with the metros)
- Distributor and retailer, confidence and support will be earned by giving them a % of the profit as
 commission. This will differ for every deal.
- The incentives given may change according to size of orders received.
- To take part in various handicraft exhibitions i.e state promotion exhibitions and other local exhibitions to
create and expand the earnings from the national sector.
- Detailed print ads to be issued to all potential retailers, along with free samples.
-Experiential marketing in the form of giving free samples to people outside selected retail stores , in order to
get immediate feedback.
- Prices will be kept competitive.
Aggarbatis are eco-friendly so we can use green marketing in promoting it especially in metros and it can be
one of our USP’s for international markets.

FUTURE MARKETING STRATEGY

-Agent to be appointed to tap international sector (rules for incentives same)
-To take up stalls in exhibitions organised by export promotion council of India in order to boost our exports.
- A Person will be appointed to constantly communicate change in price, demand, competition etc.

ADDRESSES OF RAW MATERIALS SUPPLIERS:

1.M/s Ravi Flour Mills & Industries, 339 Bapujinagar, Mysore Road, Bangalore –
26

2. M/s H.P. Nanjudiah Setty & Sons, 62, Gundopath Street, Bangalore – 53

3.M/s Ramachandra Pulverisers & Industries, IV Main Road, New Tharagpupet,

Bagalore-2 PERFUMES :

1.Pushpa Perfumery Products, 138 Akkipet Main Road, Bangalore – 2

2. Saibaba Sugandh Bhandar, 53, Sultapet, Bangalore – 53

BAMBOO STICKS:

1.R. Ramaiah Arumugamgalli Kalasipalayam, New Extn., Bangalore – 2

PACKING (PAPER, POLYTHENE COVERS, POLYTHENE PRINTING AND LITHO

PRINTING)

1.M/s Lakshmi Paper Industries, 33-Town Rly.Station Road, Salem – 1,

Tamilnadu.
2.The Paper Products Limited, 60 Chinthamani Street, Madras – 1