Agarbatti (Incense Stick) Manufacturing project report

Agarbatti Manufacturing Project Report – Basic Information
1. Introduction
Agarbatti, commonly known as incense sticks, are used in religious ceremonies, meditation, and for aromatic purposes. With increasing spiritual practices and export demand, agarbatti manufacturing is a viable small-scale business.

2. Business Overview
Business Type: Small-scale manufacturing

Product: Agarbatti (Incense sticks) in various fragrances

Industry: FMCG / Religious & Aromatic Products

Target Market: Local market, temples, households, export

3. Market Potential
Domestic Demand: Very high, used daily in most Indian households.

Export Potential: High demand in countries like the USA, UAE, Indonesia, and European nations.

Key Drivers: Cultural practices, increase in spiritual awareness, eco-friendly products

4. Product Types
Charcoal-based Agarbatti

Masala Agarbatti

Herbal Agarbatti

Bamboo-less Agarbatti

Scented Dhoop Sticks

5. Manufacturing Process
Steps:
Mixing: Charcoal powder, jigat powder, and water are mixed.

Rolling: The mixture is applied to bamboo sticks (manual or with machine).

Drying: Rolled sticks are sun-dried for 1-2 days.

Fragrance Dipping: Dried sticks are dipped in fragrant oils.

Packing: After drying, the sticks are packed in different quantities.

6. Raw Materials Required
Bamboo sticks

Jigat powder

Charcoal powder

Perfumes/Essential oils

DEP (Diethyl Phthalate)

Packing material

7. Machinery Required
Agarbatti-making machine (manual/semi-automatic/automatic)

Mixer Machine

Dryer (optional, depending on climate)

Weighing Scale

Packing machine

8. Manpower Requirement
1 Skilled worker (machine operation)

2–3 Unskilled workers (rolling, drying, packing)

1 Supervisor/Manager

9. Project Cost Estimate (for Small Unit)
Particulars Amount (INR)
Machinery & Equipment ₹1,50,000
Raw Materials (1 month) ₹50,000
Working Capital ₹50,000
Packing Material ₹20,000
Misc. Expenses ₹30,000
Total ₹3,00,000

10. Profitability Estimate
Production Capacity: 100 kg/day

Selling Price: ₹120–₹150 per kg

Monthly Revenue: ₹3,00,000 (Approx.)

Monthly Expenses: ₹2,00,000 (Raw material, wages, rent, etc.)

Net Profit: ₹80,000–₹1,00,000/month (Approx.)

11. Licenses & Registrations
Udyam Registration (MSME)

GST Registration

Trade License

Pollution NOC (if required)

Trademark (for branding)

12. SWOT Analysis
Strength: Low startup cost, high demand
Weakness: Manual labor dependency
Opportunities: Export market, organic/agro-based variants
Threats: Price competition, raw material availability