Agarbatti Business Project Report



You can now get Agarbatti Business Project Report for your new agarbatti venture with a click. It is a small-scale or medium-scale business plan. India is a big Agarbatti-producing country in the world. It supplies Agarbatti to many states of India where it is not manufactured and also to the foreign market. Yes, Agarbatti has captured the international market as well because of its aroma. The Indians who live in foreign countries also use them.

India being the leading producer of Agarbatti fulfils the world’s requirement of more than half the number. Thus, Indians have a good opportunity to start the Agarbatti business and sell them online too. You can grow in this industry and start your business. The government of India has tried to bridge the gaps in business by providing financial assistance and support of MSME.

Agarbatti Making Business Project Report

Agarbatti Making Business Project is useful for the new entrepreneurs who wish to start this venture and invest their money with the motive of making profits. It is also useful for students, chartered accountants, tax consultants and all others who want to know about this business. Our website has experts who can help you get a customized project report so that your time and energy is saved in writing one. Writing your own project report is not an easy job. Thus, you need an expert personalized project report that you can present in the bank to get loan. 

You can download the Project Report of Agarbatti Business in PDF format here.

Agarbatti is a popular household item that has a lot of potential in the market. In India, the practice of burning incense sticks or incense has been practiced since ancient times.

Agarbatti is an aromatic powder or paste burnt as an aromatic scent in Indian homes and is reputed for its pesticide and antiseptic properties. The burning time takes by incense sticks varies from 15 minutes to 3 hours, depending on the quality and size.

You need to start manufacturing agarbatti using following steps. Preparing mixture that requires a paste of gigatu, white chips and charcoal. Next you need to load the mixture in a machine. This mixture will be semi solid. You also have to place the bamboo stick and soon collect agarbatti.

The incense sticks get ready, and you have to dry them now. It can be done under the sun or using dryer. To add fragrance is optional. Packaging of agarbatti is done and it needs a good quality box for that.

Planning Phase of Agarbatti Business

It is a lucrative business, and you need to install some tiny machines and equipment’s for this set up. The manufacturing can be done from even home.

It is an item of religious use. Being a fundamental thing, it is required in every household and places of spiritual importance like temples. The extent to which you can take this business depends on your production capacity.

It also depends on the market demand of incense sticks. If the demand is high production capacity needs to increase especially during the festival season.

You cannot just capture the Indian market but also international market sales agarbatti. India exports around 500 crore agarbattis to international countries like China and Japan. All foreign countries use incense sticks and demand them in abundance.

As the demand for incense sticks in foreign countries is high so exporting them is a great idea. Using low grade technology, you can manufacture agarbatti and earn in foreign currency. It is an export oriented set up. You can thus earn good with initial investment that is very low. The GST was 12% on agarbatti sales that has now been reduced to 5%.

Incense Sticks Business Plan in India

You can start a business of making incense sticks or incense sticks from home or as a small-scale manufacturing unit.

Incense sticks are used by Indians living in India, Sri Lanka, Burma, and abroad. To date, about 90 foreign countries are using incense sticks. Agarbatti is in demand throughout the year, and it grows during the festive season.

Agarbatti or incense manufacturing business is recognized as an export-oriented industry. It is one of the items considered to boost exports. Due to the low technology required in this industry, the business of manufacturing incense sticks can be started with simple machinery and moderate capital investment.

Objective of the Agarbatti Project Report

The objective of the agarbatti business project report is to guide the new potential entrepreneur in the field of Agarbatti manufacturing. Reports help make investment decisions in agarbatti manufacturing projects. Agarbatti making business report format helps prepare project reports for bank loans and other works. To increase the production of Agarbatti in local areas so that more employment opportunities can be generated. 

Find step-by-step on how to start an incense sticks business.

How To Register Your Agarbatti manufacturing Business 

  • In starting the business of making incense sticks, you must first register your business with ROC (Register of Companies). If you are starting with less capital, start as a Sole proprietorship or Partnership or LLP. However, if you want to start big and are looking for funds, then it is better to choose a private limited company as it will provide confidence to the investors and can easily get other necessary licenses and permits as well.
  • Apply for an agarbatti trade license from the local authority. Get a Business PAN Card. Open a current bank account.
  • Additionally, apply for online for Udyam Registration. You will also have to apply for ‘consent for installation’ from the Pollution Control Board. Get GST registration as soon as possible.

To apply for a license to manufacture agarbatti, you must have Aadhar Card, PAN Card, Project Report, and other fundamental documents. 

What are the licenses required for Agarbatti Business?

In case you are going to start agarbatti business in India, you will require mandatory license to start it. The demand for the permits and licenses may vary from one state to another. It is advised to check the rules of your state first. Here is the list.

Registration of the Company

The first step is to get your company registered. You must get the company registered first and then start its working. It can be a sole proprietorship, partnership.

You can start aggarbatti making and selling business once you get your company registered. You have to first check out the rules and laws for running this business. Registration with ROC is compulsory.

By the time you plan complete registration process you must arrange some land or space where you can start this business. You can even choose your home for manufacturing agarbatti but it should be in a good location where transportation can take place.

GST Registration

It is compulsory so that you can have your GST Number for selling your services and goods.

EPF Registration

The registration under EPF is compulsory as you may have to hire more than 20 employees in your company so for that you would need this registration.

ESI registration

The employee state insurance is compulsory if you have more than 10 employees working under you.

Trade License

This is a compulsory license that you need to get from the local state authorities.

SSI registration

SSI Registration is needed for the companies having SSI unit. It is not a compulsory license.

Pollution control Certificate

It is necessary so that you can be sure of creating no pollution. One gets the inspection done and then this certificate is provided. It is given by state pollution control board and once you get it then only you can start your business.

Factory License

Large Scale Manufacturing units need to have NOC and factory license.

Why should I start Agarbatti Business in India?

It is a necessary item in every family and religious places. The size and scale of this business can be determined by your production capacity and the manufacturing capability of your employees.

The market demand is high so you should start this venture. You can expand your business in some time and become the leading company that manufactures agarbatti.

What are the main investments in Incense Sticks Business?

The main investment in agarbatti making business are as follows.

  • Raw material of Agarbatti
  • Agarbatti making machinery.
  • Manpower to manage production and distribution.
  • Warehouse or storage Space
  • Sales and Distribution Cost
  • Manufacturing Unit

Which equipments are required for manufacturing Agarbatti?

  • Rolling Wooden Planks
  • 10 kg capacity weighing balance.
  • Aluminium Trays
  • Sprayer
  • Mixing Containers
  • Packing Table
  • Plastic Bucket, jugs etc.

The raw material for 10,000 agarbatti will cost you around Rs 50,000.

Manpower Requirement for Agarbatti Production Unit
  • Unskilled and skilled labour
  • Delivery boy
  • Manufacturing head
  • Office Management Staff

The salary these days is approximately Rs 13,000. You can decide it as per your location. You will have to hire 2 or 3 employees to carry out the production and management activities of this business.

Market Research

The first step is to carry out the market research so that you can get information about the quality and type of agarbatti that is popular in Indian market. The size of the business will depend on the demand of the product.

Indian Agarbatti market is one of the leaders in Agarbatti manufacturing.

There is huge demand of importing agarbatti also. Foreign countries are the importers of agarbatti.

Incense sticks business is diversified as dhoop cones, perfumed dhoop, dhoop sticks etc.

Raw Material for making incense sticks

The main raw materials for incense sticks are bamboo sticks and various powders. By size, you will need to buy sticks. Also, you can produce sticks in your work by having a stick making machine. Other ingredients are Jigar powder, Charcoal Dust, Wood Incense Powder, Joss Powder, and many essential oils.

Bamboo Sticks that range between 8 to 12 inches. Raw bamboo sticks that are needed to make incense sticks and they exist in raw form.

Packaging Material is required to pack the agarbatti sticks. They need to be airtight so that the fragrance can be locked in them.

Aromatic ingredients

Natural aroma oil

Color Powders

You need to buy color powder to make agarbatti look attractive. These can be as follows.

  • Charcoal Powder
  • Crude Paper
  • Gum Powder that is famous as sticky powder.
  • Nargis Powder
  • Perfumes
  • Jikit Powder.
  • Sandalwood oil
  • Sawdust

Fragrance: Fragrance has to be added but differently in another manufacturing step. It is optional to add it. You can sell agarbatti without fragrance or you can install another machine to add fragrance and increase the price of fragrance agarbatti sticks.

You can do a market survey to know whether the users like agarbatti that is with or without fragrance and then you can plan whether to but fragrance machine or not.

According to fragrance, you need to choose the right formula. Pay attention to the packaging. An aromatic lock packaging system is important in making incense sticks. Since you will be using the bamboo stick as raw magterial for agarbatti business, why don’t you start bamboo stick manufacturing business so that your cost becomes low. Here is the detail for bamboo stick manufacturing business plan

How much raw material is required to manufacture agarbatti sticks?

The material that you require for making agarbattu are available in the local market. You just need to explore the agarbatti industry that is already working on this business and get idea for your decision on how much raw material you need to get initially. Then you can look for raw material supplier and get the amount of raw material you deem fit to buy. The amount of raw material will depend on the production capacity of your company. Bamboo is the major raw material in this business. It costs Rs 120 per kg.

PMEGP Loan for Agarbatti Business

The KVIC that helps to set village industries on priority provides loan or financial assistancwe to the entrepreneurs and provides them subsidy as well. The state Khadi and Boards provide subsidy loans to the entrepreneurs in India.


The main challenges in this business are the raw material. Yes, charcoal, joss powder etc. You may face problem to arrange it.


You have the opportunity to start export business of agarbatti and capture international market. You have great market potential. There is wide scope of research and development and innovation in this business. It will expand the domestic market of the country and provide opportunity to raw material suppliers as well to increase their business.

Land or Space

Thus, you have to mention about the location in your business plan. A land of 500 to 1000 square feet is enough. It should have enough space for storage and have water and power supply.

You can also avail land on rent. Every business requires complete planning, and the space will only lead you to output.

Land Arrangements Include
  • Preparing Floor Plan
  • Designing space and setting place for machinery
  • Planning location of storage of finished product.
  • Packaging department setting and exit gate too.
  • Training of workers is also important so that they can do the production and packaging without confusion.
  • Choice of Fragrance and blending ingredients in the required proportion.
Strategy For Selling Aggarbatti

You can adopt various strategies to sell aggarbatti in the market. It is a profitable business so you can make huge money in this startup.

Retail Distribution

You can reach out to the local market retailers and sell your product directly to come. Approaching malls is also a good idea.

Channel Distribution and E– Commerce

You can become partner with retailers and get an area to start secondary sales. Be a seller on flipkart or amazon to expand your sales.

Agarbatti Making Machinery

According to the desired output, entrepreneurs have to choose the right machinery for the business of making incense sticks. As far as the feasibility of the project is concerned, choosing the right machinery is one of the most important deciding factors. The business of making incense sticks is profitable, and various types of machinery are available in the market. The project report contains detailed information and pictures of machines for the manufacturing of agarbatti.

There are broadly three types of agarbatti making machines available. They are manual, automatic, and high-speed automatic agarbatti manufacturing machines. Apart from these, you can also consider buying incense sticks raw material mixer machine and drier to get better production output.

Manual Incense Making Machines

The manual agarbatti making machine is a very easy operating machine with high output, low price, durable, superior quality, which does not require any power. It is easy to maintain at a very affordable price. You can make more quantity and better-quality incense sticks from these machines. 

Automatic Agarbatti Making Machine

High volume output is a perfect option for achieving more uniform output with an automated machine. These machines are available in attractive patterns, designs, and sizes as per exact requirements. With this type of machine, you will get an output of 150–180 sticks/min. Both round and square sticks may be used. Typically, these machines run on electricity. And this type of machine demands a dedicated person to continuously feed the machine with bamboo poles.

High-Speed Automatic Agarbatti Making Machine

Different types of agarbatti drier are available with different models. Drying machines used in commercial production hardly cost 4-5 / kg. You will get a production output of 160 kg / 8 hours.

Powder mixer machine for making incense sticks

In starting a commercial large-scale agarbatti business, you may consider having a powder mixer or blender machine to achieve the same mixing quality with low labor input. These machines are normally capable of mixing two types of powders that can be both wet and dry powders. These machines are typically custom available in various sizes, shapes and capacities. Production capacity normally varies from 10kg-20kg / 10min.

Manufacturing Process Of Agarbatti 

There are mainly two types of incense sticks commercially manufactured. One is aromatic incense sticks, and the other is spice incense sticks. In the manufacture of aromatic incense sticks powder of charcoal, gigantic, white chips, etc., a semi-solid paste is made by mixing it with water. This property is taken on a wooden plank and is rolled by hand with an automatic incense sticks machine.

Finally, the raw rods are dipped in an appropriate aromatic compound diluted with other solvents such as white oil or diethyl phthalate (DEP) and dried and packed.

Bank Loan For Agarbatti Manufacturing Business

Initially while setting up agarbatti production, you might not have funds. Thus you can present agarbatti manufacturing project report to the bank and avail bank loan. You can download the project report from our website and can even order a personalized agarbatti project report as well. Your chances of getting loan approval will increase.

You can get bank loan for setting up this unit. You can try subsidy loan scheme as well and other bank loan that can be easily offered to you as per eligibility. Mudra loan scheme or loan under PMEGP can be applied online. You need to check out first whether you can get loan for agarbatti manufacturing business under this scheme or not. Once you receive the loan you can instantly start your new business.

How much area is needed for setting up Agarbatti Manufacturing Unit?

You can start agarbatti manufacturing business from anywhere like your home or any other place. It doesn’t demand any particular set up. You just need to see that the place you choose for setting this business has good access to transportation, and you can get raw materials on time. The area for this business should just get the machine installed.

How To Write Project Report for Agarbatti Production

When you understand the market while exploring, you need to write agarbatti manufacturing project report pdf and include all significant details about this set up.

The project report purpose is to tell the financers that you are going to set up this business with an aim and you know every detail about this business. Also you have a plan in your hand so chances of making wrong decisions get low.

Since it is a small scale set up thus you have to include information regarding the capacity of production, cost, capital requirement, etc.

  • Mention about Space and Unit cost.
  • Machinery details
  • Expenses and details about Raw material, wages, bills, utility etc.

Expected profit and market to focus should be a part of your project report.

Arrange Finance

Now you have to think from where you can arrange finance. Production of Agarbatti is not an expensive business startup. The requirement of expertise is also minimal. You can therefore start this business with the cash you have in hand or get the project financed.

One needs to be prepared to invest in this business by buying the raw material and planning expenses properly. The entrepreneur can also buy the machine that he finds affordable.

You will also have to plan the marketing strategy and try for more ways to expand your business later.

How to sell incense sticks

If you are a beginner to enter the market afresh with a small promotional budget, then focus on selling incense sticks items in your vicinity. You can sell incense sticks locally.

Find a place near a temple or religious place and set up temporary kiosks. Fix banners and distribute flyers and sell them from the stall. You can also sell your goods online at places like Amazon. You can also cater to a wider audience by creating online stores and selling online.

Where can agarbatti be sold?

You can sale agarbatti in the nearby areas to make your brand famous. You can go to sell them in the local markets and can even export to other countries. These days online selling is popular. It can help you to open your agarbatti store.

Should I buy raw agarbatti?

A raw agarbatti is the incense stick that doesn’t have any fragrance or perfume. It is your choice to buy it or not.

Where can I sell raw agarbatti?

You can sell raw agarbatti to the industries that works to add perfume in them. They can add fragrance and sell them to the market. You can also buy perfume adding machine to add fragrance in incense sticks.

You can sell agarbatti locally, and then you can do advertisement of agarbatti in newspaper or TV and capture wide network. In general, you can get distributors and merchants who can take agency of agarbatti and sell your product on retail. You can also approach supermarkets, shopping malls, complexes etc.

TV Advertisement can is essential as it can immediately boost your sales. You can popularize your brand and promote your business. You can get long term success by ensuring strong distribution channel.

Door to door delivery of agarbatti packets is also a good idea.

Should I sell agarbatti online?

Yes, you can sell agarbatti online by creating a website or on e-selling platform.

Divisions of Agarbatti Manufacturing Business

You can work with multiple divisions in agarbatti manufacturing business. Incense stick manufacturing unit, bamboo stick supplying unit or raw material supplying company and even perfume adding industry. You can also run four departments under one roof.

Which fragrances to add in making Agarbatti?

You can add a few famous fragrances like Marigold, Rose, Lavender, Cedarwood or Sandalwood.

Should I manufacture Eco-friendly agarbatti?

Yes, you can manufacture eco-friendly agarbatti also as people demand eco-friendly products. You can use dry flowers to make them as it is healthy and much preferred these days. –

How to Download Incense sticks Project Report

You have the option to download the project report of incense sticks manufacturing quickly. Report charges are very low. You can download the project report in PDF format immediately after payment. If you want to enter into the aroma or incense stick business, I suggest you start dhoop batti business also as the investment is not much in this business. Check out important details in Dhupbatti Manufacturing Project Report

Contents Of Agarbatti Business Project Report

The project report of agarbatti manufacturing business covers the following topics.

Sr. No.Particulars
1Project At a Glance
2Highlights of The Project
3General Information and Location
4Promoter’s Background
5Project Introduction
6The Project Proposal
7Prospect for Investment
8Potential Target Customers/Market
9Market Entry and Marketing Strategy
10Critical Success Factors
11Process Details and Technical Aspect
12Process Flowchart
13Installed and Operational Capacity
14Raw Materials and Consumables
15Power And Utility
16Tentative Implementation Schedule
17Basis & Presumptions
18Capital Investment Estimates
19Computation of Working Capital Requirement
20Estimated Cost of The Project
21Proposed Means of Financing
22Estimated Annual Sales Turnover
23Projected Profitability Statement
24Calculation of Interest Amount
25Depreciation Schedule
26Term Loan Repayment Schedule
27Debt Service Coverage Ratio
28Break-Even Analysis
29Projected Cash Flow Statement
30Projected Balance Sheet
31Internal Rate of Return
32Pay Back Period
33Statutory Permits and Business Licenses
34Important Steps to Start Msme Business Unit
Conclusion Of Agarbatti Project Report PDF

In this above article, I hope you well understood all about the agarbatti business. If the agarbatti making business idea is trending, and it is easy to get started, all you need is dedication. The market is open to a huge customer base so that you can start with your capacity as per your demand and supply. Here you get information about the following business opportunities.  

Frequently Asked Questions On Agarbatti Project Report
Is agarbatti business profitable?

Yes, it is profitable. You can easily make 1000-1500 Rs. Daily. You can also export it to other countries to make additional money.

Which raw material is used to make agarbatti?

It generally includes charcoal powder, bamboo stick, incense powder, and sawdust.

What are the benefits of agarbatti?

1) Helps to get rid of germs 2) Speeds up the healing process 3) Clears Headache and Migraine 4) Soothe the mind 5) Enable sound sleep 6) Reiterates the benefits of aromatherapy.

What are the steps for making agarbatti?

1) Manage agarbatti making machines 2) Now arrange the raw material 3) It is necessary to select an appropriate location and then install the machinery 4) Hire employees and provide training 5) Mixing or spice preparation is used as a coating around the stick 6) In load mixing and bamboo stick machine 7) Take raw incense sticks 8) Dry in the sun or use a dryer machine 9) Add fragrance 10) Packaging and Transportation.

Is the project report of Agarbatti manufacturing available in PDF format?

Yes, you can download the Project Report of Agarbatti Manufacturing in PDF format. Where can I get the agarbatti project report sample pdf for bank loan? If you have a desire to start Agarbatti business, then you can get the project report sample pdf from our website. It will help you to write your own project report for agarbatti business.


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