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Agarbattis are incense sticks widely used across the world in households, temples, meditation centres, spiritual homes, spas, resorts, etc. These are long, thin bamboo sticks wrapped in an aromatic paste of scented blossoms with fragrances like rose and sandalwood. The demand for agarbattis is always high and even higher during festivals and celebrations. India is one of the few countries involved in agarbatti manufacturing, fulfilling the demand of around 90 countries worldwide.
Here is a stepwise guide if you are considering setting up an agarbatti business.
Are you wondering how to start and expand an agarbatti-making business in India? These are the steps involved from planning and registration to selling and financing:
Agarbatti making is a lucrative business that lets you make incense sticks with small machinery and little workforce. Given its essential presence in households, holy places, and spiritual establishments, the demand for this item is constant, indicating substantial growth potential for businesses in this sector.
Agarbattis are in high demand not only in India but also in other Asian countries, including Japan and China. So, exporting them to other countries adds to the business idea's prospects. With little investment, you can focus on building an export-oriented manufacturing unit. Moreover, the initial investment is relatively low, and the profits are high depending on the production volume. Earlier, the applicable GST on agarbattis was 12%, but later the government reduced it to 5%.
When planning to start an agarbatti business, obtain the required licenses, purchase the raw materials, get the right machines, and focus on marketing and distribution to achieve business success with minimal effort and investment.
If you are planning to start an agarbatti-making business in India, you will require the following licenses to operate:
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Depending on the variety and quality of incense sticks you want to produce, you will require the following raw materials to get started:
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Once the agarbatti sticks are ready, the next step is adding fragrance. Customers usually demand incense sticks with a pleasant aroma. Research the market and find which fragrances are highly in demand, or you can add fragrances according to your retailers' or customers' demand.
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Various types of agarbatti-making machines are available in the market. You need to select one according to your budget. These are the available options:
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Door-to-door distribution, kiosks, TV and search engine advertising, etc., are some options to sell your incense sticks. Temples, meditation centres, spas, massage centres, and spiritual establishments are the best places to sell agarbatti products. Adopt a wholesale marketing plan to achieve success with your agarbatti-making business.
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A Business Loan can help you expand an agarbatti-making business in many ways, including the following:
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Here are the steps involved in a Business Loan application procedure:
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Agarbatti making is one of the most lucrative cottage industries in India. If you are already in the agarbatti manufacturing business and plan to expand your operations, apply for a Business Loan with Hero FinCorp and receive the required funding without collateral. You can use the loan amount for any business-related purpose without any restriction from the lender. These loans come with ample loan amounts, competitive interest rates and flexible repayment tenures.
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1. Is the agarbatti business profitable?
The agarbatti business is quite profitable since incense sticks have a huge and never-ending demand in India and abroad.
2. Which city is famous for agarbatti?
Mysore, Karnataka, is the most famous Indian city for agarbatti production. Its history of making incense sticks dates back to the 17th century under the Wadiyar dynasty.
3. Is it possible to sell agarbattis online?
Yes, you can build a website and sell your manufactured agarbattis online. You can also use e-commerce platforms for this purpose.
4. Can I use a business loan to market and promote my Agarbatti products?
A Business Loan has no usage restrictions, which means you can use the loan amount to promote and market your Agarbatti products.
5. How do I qualify for a business loan for my agarbatti business?
Check the lender’s eligibility conditions regarding age, business vintage, turnover, etc., to qualify for a Business Loan for your agarbatti-making business.
Disclaimer- The content provided in this document is for informational purposes only. It offers insights into the process of starting an agarbatti making business, potential benefits, and various aspects related to this field. The information is based on general knowledge and industry research. The costs provided are only an approximation, and the actual expenses may vary depending on the scale of your business.
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
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