Bamboo Sticks Project Report

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Description

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These reports will help you prepare a project report as per your objectives. This report will also be helpful in studying the project and gathering information about the project.

Bamboo is a tribe of flowering perennial evergreen plants in the grass family Poaceae, subfamily Bambusoideae, tribe Bambuseae; however, in many countries where bamboo is a forestry product that is harvested only for the wood it generates, which is superior in many respects to other natural, fibrous construction materials in terms of strength and durability. It is frequently referred to as a tree by cultures that harvest it for wood.

The grass family’s most prominent members are giant bamboos. The inter-nodal areas of bamboo stems are hollow, and the vascular bundles in the cross-section are distributed throughout the branch rather than arranged in a cylindrical pattern.

Summary 

Incense sticks have been burned on religious and social occasions in India and many other places worldwide. When burned, incense is made up of aromatic biological components that emit fragrant smoke. The word “incense” refers to the substance rather than the odour it emits. Incense is used in many religious ceremonies and spiritual purification procedures, and it is still used today. India is the world’s leading producer of agarbatti and supplies more than half of the world’s incense sticks. India exports Agarbatti to approximately 90 nations.

Production of agarbatti/ incense sticks is a well-established cottage industry in India, with a market worth $5 billion and expanding. Bamboo sticks make about one-third of the eight different types of incense sticks available.

Although bamboo represents just around 1% of the end product’s cost, it is the most essential raw material for agarbatti manufacture. However, due to a lack of gregarious flowering of the main bamboo species utilised in stick manufacturing, Muli bamboo, there may be a shortage of raw material and a drop in stick supply. Furthermore, thanks to reducing the import duty on bamboo sticks from 30% to 10%, imported bamboo sticks from China and Vietnam now meet 70% of the agarbatti industry’s bamboo needs. Because of large-scale mechanisation, imported bamboo sticks have higher uniformity in dimensions and quality.

Bamboo Mission is promoting the growth of the bamboo industry by encouraging bamboo plantations and implementing mechanisation. Now that the government is focusing on this area, the industry is transitioning to a fully automated stick production process as a full-fledged corporate activity.

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Introduction

In India, incense has been used in religious and social rituals across all communities from ancient times. Agarbatti, formerly a staple of Indian spiritual practices, has now expanded to include aromatherapy, meditation, and yoga items. India’s agarbatti industry is the world’s largest. Agarbatti manufacture is a well-established cottage industry in India, with a market worth $5 billion and expanding.

Even though India is the world’s second-largest producer of bamboo, the agarbatti sector imports 70% of its bamboo, despite the variety of bamboo species, the most often utilised species for stick manufacture include M. Baccifera (Muli), Bambusa vulgaris (Bari), Bambusa tulda (Mritinga), Bambusa balcooa (Barak), and Dendrocalamus longispathus (Rupai).

Imported bamboo sticks are typically better in size, consistency, and quality than handmade sticks manufactured in India. Incense sticks have been burned on religious and social occasions in India and many other places worldwide. When burned, incense is made up of aromatic biological components that emit fragrant smoke. The word “incense” refers to the substance rather than the odour it emits. Incense is used in many religious ceremonies and spiritual purification procedures, and it is still used today. India is the world’s leading producer of agarbatti and supplies more than half of the world’s incense sticks. India exports Agarbatti to approximately 90 nations.

Market Analysis

Bamboo sticks are in high demand in the Indian agarbatti industry, and high-quality bamboo sticks sell like hotcakes. More than 70% of the world’s incense stick market is consumed in India. The Indian agarbatti market is worth Rs.6000 crore, with Rs.2000 crore in the organised market. Small, fragmented units, small factories, and FMCG behemoths all create incense sticks.

Industry Analysis

STRENGTHS

  • Abundant raw materials
  • Local skill for making bamboo sticks
  • Existing trade relationships with end-user industries
  • Low labour costs
  • No substitute for bamboo sticks is expected to be available for end-user industries.

WEAKNESSES

  • The bamboo stick industry is in the hands of a few dealers.
  • The bamboo stick maker’s bargaining strength is limited.
  • A scarcity of entrepreneurial expertise to propel the local economy

OPPORTUNITIES

  • A constantly expanding domestic market.
  • An introduction to mechanisation to increase productivity.
  • Government initiatives to expand the sector through infrastructure development, bamboo plantation expansion, and capacity building under the Bamboo Mission scheme.

THREATS

  • Increased competition from China and Vietnam.
  • Changes in government policies.
  • Raw material shortage owing to gregarious bamboo blossoming.

The Idea Of The Project

In India, the process of producing sticks is becoming more automated. China and Vietnam, on the other hand, are creating robotic sticks. This project aims to set up a mechanised production unit producing round bamboo sticks for agarbattis. Bamboo sticks come in two shapes: square and round, which are used in the agarbatti industry. Only square sticks are created using a manual technique. However, demand for round bamboo sticks has increased as exports have increased. Sticks range in length from 8 to 10 inches. However, the bulk of incense sticks (70 to 80 percent) are 8 inches (20.32cm).

The units would buy bamboo sticks from forest collectors and bamboo plantation farmers and utilise a mechanised process to manufacture round sticks of 8″ to 9″ as the Indian agarbatti business requires. High-tech processing will maximise the use of bamboo and deliver high-quality results. This will aid the entrepreneur in competing with Chinese and Vietnamese sticks.

Bamboo waste (nodes, green strips, fibers, etc.) is estimated to be 40%. These wastes can be utilised to power a bamboo stick drying device. For effective waste management, selling the garbage to a bamboo charcoal unit will be investigated.

Raw Material Required

  1. Aromatic Ingredients.
  2. Natural aromatic oil – Only natural.
  3. Bamboo Sticks: Bamboo sticks that range from 8″ to 12″ inches are required.
  4. Packing Materials: The packing material used must be airtight that locks the fragrance.
  5. Different Color Powder: One can add different color powders to make incense look attractive.
  6. The powders are: –
  7. Crude Paper
  8. Charcoal Powder
  9. Gum Powder is also known as Sticky Powder
  10. Nargis Powder
  11. Jikit Powder
  12. Perfumes
  13. Oil of Sandalwood
  14. Sawdust.

Addition of Fragrance

The addition of fragrance is a separate manufacturing procedure. It is, however, optional. Many incense makers sell their products without adding any aroma. You can do the same thing if you’re selling at a local market. Alternatively, anyone may add whatever scent they like or run a market survey to see which fragrances are the most popular.

Technical Analysis

The unit’s proximity to the raw material source is advantageous because the raw material is readily available. Second, well-connected regions with highways will make transporting and distributing finished items easier and less expensive. At a lower cost, labour is readily available. Because the labourers do manual stick manufacturing as a side job, moving to mechanised stick making won’t be difficult because they are already familiar with the process’s basic flow

The project seeks to create 8″ and 9″ agarbattis to meet the needs of the agarbatti business. Using a mechanised process, circular bamboo sticks are produced. The procedure for creating the following steps is involved in the mechanical production of bamboo sticks:

  • Cleaning the culms is the first step (Manual).
  • Cutting bamboo poles into cylinders by crosscutting.
  • Making slats out of the cylinders.
  • Slats of uniform thickness are used to make slivers.
  • Making of bamboo slivers into bamboo sticks.
  • Bamboo stick polishing.
  • Cut bamboo sticks to the required length.
  • Bamboo sticks drying.
  • Sorting, grading, and packaging are the final steps in the process.

Machinery

The following machines are used in the processes above:

  • Cutting bamboo poles into cylinders by crosscutting.
  • Bamboo crosscutting machine used.
  • Making slats out of the cylinders.
  • Bamboo manual splitter machine.
  • Making of slivers from slats of uniform thickness.
  • Bamboo heavy-duty sliver making machine.
  • Making of bamboo slivers into bamboo sticks.
  • Bamboo round stick machine.
  • Stick polishing machine.
  • Sizing of bamboo sticks into the desired length.
  • Bamboo sticks sizing machine.
  • Bamboo sticks drying.
  • Open-air or Dryer machine.

Licenses required

  • Company Registration: The registration of your company is the first stage in beginning an incense-making business. First, one must register their firm as a corporation, proprietorship, or ROC register of corporations.
  • GST Registration: All company owners must register for the Goods and Services Tax (GST). After completing the registration process, one would be issued a GST number that may be used to sell their goods or services.
  • EPF Registration: EPF registration is necessary if a manufacturing unit employs more than 20 workers.
  • ESI Registration: Employee State Insurance (ESI) Registration: This company has more than ten employees.
  • Trade License: A trade license is required for everyone who runs a business. Municipal governments have access to it.
  • Udyam Registration: Those who own an MSME unit must register for this Udyam Registration while it is not needed.
  • Pollution Certificate: This certificate is required, and it is obtained by inspecting the location where one’s manufacturing unit is located. This is complete by the State Pollution Control Board, following which one is allowed to conduct business.
  • Factory License: For large-scale commercial production, a NOC and a factory licence are necessary.

Key Points Cover in Sample Project Report  

Project Report Table of Contents

Sr. No.Particulars
1Purpose Of The Document
2Executive Summary
3Introduction
4The Project
5Strategies
6Feasibility Assessment
7Technical Analysis
8Process Flow Chart
9Commercial Feasibility
10Market Analysis
11S.W.O.T. Analysis
12Project Implementation Schedule
13Assumptions
14Quality Control And Standards
15Pollution Control
16Energy Conservation
17Manpower
18Power And Fuel
19Bank Loan
20Depreciation
21Approvals & Registration Requirement
22Financial Aspect
23Fixed Capital
24Land & Building
25List Of Machinery To Be Installed
26Cost Of Project
27Means Of Finance
28Computation Of Manufacturing
29Raw Material
30Computation Of Working Capital Requirement
31Computation Of Sale
32Break Up Of Labour
33Break Up Of Salary
34Computation Of Depreciation
35Repayment Schedule Of Term Loan
36Calculation Of D.S.C.R
37Cash Flow Statement
38Projected Balance Sheet
39Projected Profitability Statement
40Break Even Point Analysis
41Financial Indicators/ Ratio Analysis

Apart from this, all the information is being provided. To help in preparing project reports.

FAQ

What kind of margins do people in business get from bamboo stick production?

Bamboo stick production is a good business as it is used in many different items, for example, agarbatti and profit margins earned in making item agarbati using bamboo sticks is Profit margins range from Rs 10 to Rs 25 per kilogramme, depending on the gear used and the quality of the sticks produced. The average earnings from one agarbatti automated machine operating for eight hours per day are about Rs 800. So, assuming a month of 25 days, one machine may make about Rs 20000 each month.

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For whom are these formats useful?
  1. CA Chartered Accountants
  2. Tax Consultants
  3. Small Business Owners
  4. Students
  5. Engineers
  6. Who want to self study

In addition to those who want to prepare project reports themselves.

Sample 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 which is necessary for the Investor/bank.

You will get the  report data Bamboo Sticks Manufacturing Business in PDF or MS word. Which you can use easily. You can also modify the information according to your need. You will be able to access the data easily according to the your requirement. Additionally you can easily convert the data to PDF format.

 

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