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Agarbatti Manufacturing Project Report and CMA Data for Bank Loan.
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.
Why making incense sticks business 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.
Find step-by-step on how to start an incense sticks business.
1. Business registration for making incense sticks
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.
2. The 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, Nargis Powder, Wood Incense Powder, Joss Powder, and many essential oils.
According to fragrance wise, you need to choose the right formula. Pay attention to the packaging. An aromatic lock packaging system is important in making incense sticks.
3. 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.
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.
4. Process for making incense sticks
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.
5. 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.
6. Business Plan project report
A clear Agarbatti Manufacturing project report is crucial for your success as an entrepreneur. You also wish to contemplate some important, like your initial costs, your target market, and how long it’ll see you interrupt even. Draft a proper Agarbatti Manufacturing project report that describes your expected income, product and repair lines, expansion plans, and other details of your business. A well-drafted project report will facilitate you in applying for any bank loan. Therefore you can get well-drafted project report from our website.
Project Report Format
In our project report format, we cover technology details, its diagrams, flow chart etc.. as and when required or deemed fit to include. Also, prepare in-depth financial calculations including CMA which is necessary for the Investor/bank.
Key Points Cover in Detailed Project Report on Agarbatti Manufacturing
As mentioned above, Agarbatti Manufacturing Detailed Project Report (DPR) is a complete package that contains everything that requires getting funds up to 25 Crores (Twenty Five Crores). Checkout our DPR sample to make your vision more clear. Usually, the Detailed Project Report (DPR) is needed when you apply for a bank loan or Government scheme. Project Report Bank aims to create the reports accurately from the start and make sure that businessmen get the right value and results from the reports.
The following are the key points we generally covers while making DPR, whichever relevant to your business :-
- Introduction to Project and Industry
- Executive Summary
- Profile of the business in the country
- Project Evaluation – Social Angle
- Analysis of basic variables
- Socio- Economic Advantage
- Impact on environment
- Foreign Trade Income
- Value addition
- Import replacement
- Technology assimilation and so on
- Present condition of the business
- Consumer Inclinations
- Market Prerequisites
- Market Portions
- Distribution Channels
- Market Qualities of the Item
- Export Possibilities and Global Market
- Marketing and selling game plans
- SWOT Analysis
- Particulars Of Existing / Proposed Bank Credit Facilities (Form – I)
- Projected Profitability Statement ( Form – II)
- Projected Balance Sheet (Form – III)
- Comparative Operation Statement (Form – IV)
- Maximum Permissible Bank Finance MPBF – (Form – V)
- Cash Flow Statement – (Form – VI)
Monetary Projections Details Contains:
- Cost of Project & Means of Finance
- Details of Raw Materials
- Details of Utilities
- Human Resources Planning
- Technical Manufacturing Business Process
- Assumptions in monetary projections
- Projected Sales & Production
- Cost of Production and Profitability
- Fund Flow Statement
- Working Capital Cycle
- DSCR – Debt Service Coverage Ratio
- BEP – Break Even Point Analysis
- IRR – Internal Rate of Return
- ISCR – Interest Service Coverage Ratio
- Calculation of payback period
- Debt to Equity Ratio
- Working Notes for Monetary Projections
- EBIT – Earnings before interest and taxes
- EBITDA – earnings before interest, taxes, depreciation, and amortization
- Cash Burn Rate
- Discounted Cash Inflow & Outflow
- NPV – Net Present Value
- Net Worth
Report Size : 40 – 50 Pages,
In which, Financial Projections : 18 – 20 Pages
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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.
FAQ – Frequently Asked Questions
Q1. Is agarbatti business profitable?
Yes, it is profitable. You can easily make 1000-1500 Rs. Daily.
Q2. How does agarbatti manufacture?
The rods used to make garments are largely imported, although these sticks can also be manufactured using a sticks forming machine. The list of raw materials used to make incense is as follows: bamboo stick, aromatic chemical essential oil (sandalwood), gelatin paper perfume.
Q3. Which raw material is used to make agarbatti?
It generally includes charcoal powder, bamboo stick, incense powder, and sawdust.
Q4. How is agarbatti harmful?
If this was not enough, incense sticks contain dangerous particles and volatile substances that pose serious health risks.
The pollutants released from these fumes cause inflammation of the bronchial tubes, therefore which vent the lungs. Also this can result in chronic obstructive pulmonary disease (COPD) and asthma.
Q5. What are the benefits of agarbatti?
- Helps to get rid of germs
- Speeds up the healing process
- Clears Headache and Migraine
- Soothe the mind
- Enable sound sleep
- Reiterates the benefits of aromatherapy.
Q6. Who can opt for this agarbatti business?
It has a very high-profit margin, also requires small investment, so it can be one of the smartest business options. Therefore, making incense sticks may be the best employment opportunity for slum dwellers, domestic women, rural men, and women.
Q7. What are the steps for making agarbatti?
- Manage agarbatti making machines.
- Now arrange the raw material.
- It is necessary to select an appropriate location and then install the machinery.
- Hire employees and provide training.
- Mixing or spice preparation is used as a coating around the stick.
- In load mixing and bamboo stick machine.
- Take raw incense sticks.
- Dry in the sun or use a dryer machine.
- Add fragrance.
- Packaging and Transportation.