Why And How To Start An Agarbatti Business In India

Want to start an agarbatti business? Learn everything about this business and the journey around it.

Agarbattis are a big part of Asian culture, from being utilized in temples, to being used as home incense. One can find them in various fragrances and colors. They are also available in other forms like dashang, dhup (cones and tablets).

The burning time of agarbatti varies on its durability and price and can last from 15 minutes to hours. Agarbattis are mostly made of charcoal powder and sandalwood powder with a 50% wood gum powder mixture. Other ingredients are perfumes, essential oils, and natural fixatives like amber, musk, and civet. 

Why Start An Agarbatti Business?

Agarbatti falls in the category of necessary items in Asian households and spiritual locations. Which means that they are very high in demand. They can be sold not just in India but also all over Asia. 

In 2017 and 2018, India shipped over 500 crores of incense sticks to Asian countries such as Japan and China. Such incense sticks are used in over 90 countries. 

Different Licenses Required for Agarbatti Making Business

In an agarbatti business, one would require several licenses to operate. These permits ad licenses may change from state to state hence, it is advised to check the state rule with respect to the agarbatti permit license to use.

Company Registration

This is the first step to start incense making business. One needs to register their business as a company or a Proprietorship or ROC register of companies to get started.

GST Registration

GST registration is mandatory for every business holder. On successful registration, one will get a GST number for selling their goods or services.

EPF Registration

This registration is necessary only if one has more than 20 employees in a manufacturing unit.

ESI Registration

This Employee State Insurance or ESI has greater than 10 employees.

Trade License

This is necessary for every person having a business. One can get it from local authorities.

SSI Registration

Registration for this license is required for those having an SSI unit, though this is not compulsory.

Pollution Certificate

This certificate is necessary, and one gets it through an inspection of the site where one has their manufacturing unit. It is done by the State Pollution Control Board, after which one will be allowed to conduct business.

Factory License

Large-scale manufacturing commercial units must have a NOC and a factory license.

List Of Raw Materials Required For Agarbatti Making

The raw materials required for Agarbatti are:-

1. Aromatic Ingredients
2. Natural aromatic oil – Only natural

Bamboo Sticks: Bamboo sticks that range from 8″ to 12″ inches are required, or

Raw Bamboo Sticks: If one is manufacturing bamboo sticks, one needs to buy bamboo sticks in raw form for making incense sticks

Packing Materials: The packing material used must be airtight that lock the fragrance of the agarbatti

Different Color Powder: One can add different color powders to make agarbattis look attractive. The powders are:-

1. Crude Paper
2. Charcoal Powder
3. Gum Powder is also known as Sticky Powder.
4. Nargis Powder
5. Jikit Powder
6. Perfumes
7. Oil Of Sandalwood
8. Sawdust

Addition of Fragrance: The addition of fragrance is a different manufacturing step. But it is optional. There are many agarbatti manufacturers that sell it without adding any fragrance. One can do the same if they are selling in local markets. Or one can add any fragrance as per their liking or can do a market survey to know which fragrances are preferred.

Steps Involved To Start The Agarbatti Business

Here are the steps one needs to follow to start the agarbatti business:

Creating A Business Plan

Like every business, you should first of all work on a plan to run your business. The plan should be thorough and detailed and consists of all the big and tiny details of the business. The plan should be a five-year plan that has all the milestones you want to achieve, including target audience, loan, budget, investment, geography, and everything in between.

Registering The Business

Once all the planning is done, now is the time for you the register your business. You need to register your company, firm, or manufacturing unit. You need to determine the business structure on which the business will operate.

Agarbatti business can be registered registered with the Registrar of Companies (ROC) under Section 609 of the Company Act, as a privatelimited or public limited company, sole proprietorship, partnership firm, limited liability partnership, etc.

Apply For Licenses

As mentioned above, there are many licences that you would require before you start your business of agarbatti. Hence make sure you go through the list thoroughly and get each one of them for a hassle-free business.

Arranging Finances

All businesses require money to start and the amount of money required on various factors like the size of the business and what business are you planning to do. This agarbatti business can be started with low to medium investment and you would require approximately INR 10 to 40 lakh to start this business. You can hire about 8-10 people initially to start the work.

Buying Raw Materials

There are several raw materials that one would require for the agarbatti business. The list of materials mentioned above would have already given you an idea of what you would require.

Finding Places To Sell

The final step to this process is to find a place to sell the agarbatti. The places to sell your products are at a temple, churches, holy places, market including local bazaar, grocery stores, retail shops, wholesellers etc. You can also sell your products on e-commerce website or create a social media profile to tell people about your brand and sell it through it.

How Lio can Help You With Your Agarbatti Business

To make your dreams come true of having a business of your own and managing it nicely, Lio App can help you big time. The app lets you keep all sorts of data together in a more organized manner. You can keep records, and create tables and lists while working solo or with a team. 

The many features of Lio would help you with your retail business as you would be able to maintain all data on a track that you can use at any time. If you want to upload a document, then you can do that. Know the money transactions, cash inflow, profit and loss you are making, Udhaar, list of products, services, and even the teammates and clients that you have all in one place. 

Your retail business ideas will certainly become successful businesses if you go on this journey of managing your business with Lio.

Step 1: Select the Language you want to work on. Lio on Android

Step 2: Create your account using your Phone Number or Email Id.

Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

Add your Data with our Free Cloud Storage.

Step 4: All Done? Share and Collaborate with your contacts.

Conclusion

Agarbatti business is one of the best and most profitable businesses that one can get into. Your market is not just national but also international. One can start small from their own house and slowly grow the business based on the response that you get.

If you too are interested in starting your business then follow the steps in the article and you would be able to launch your business successfully and smoothly.

Frequently Asked Questions (FAQs)