INCENSE INDUSTRY : AGARBATTIS Current Scenario and Opportunities KAVYASHREE NEHA UPADHYAY SHARAD SHARMA SAHIL SUDARSHAN JAIN
Industry • The size of the incense stick industry in India about Rs 1000 crores a year growing at 7% p.a Exports- Rs 300 crores . Source: http://www.itcportal.com/newsroom/press_sept30_04.htm
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Current industry consumer spend estimated at over Rs. 900 crores p.a.
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Use of Incense : India – Worship , Overseas – Ambience creation/Aromatherapy
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Fragmented supply base arising from small scale industry; highly disorganized sector
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The Indian incense industry, supplies up to 60% of the world incense market.
• Assam, Tripura and Eastern India presently supply incense sticks to the rest of the country. Chhattisgarh and Madhya Pradesh also have
Companies/ Key players ITC ‘ s MANGALDEEP – Superior fragrance experience based on research. – Fragrances approved by IFRA , Geneva. – Consistently superior product experience • Systematic quality management approach • ISO 9001:2000 Certified Vendors. • IFAT-certification. – Attractive & functional packaging • Special fragrance locked packaging • ‘Mangaldeep’ : the only National brand in the country
• “ASHA” Assistance in Social Habilitation
Sudarshan Dhoop • •
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was founded by Mr. K. N. Kesri way back in the year 1952 The company’s Managing Director Mr. Manoj Kesri and Joint Director Ms. Jyoti Kesri are responsible for marketing and export business. 300 fragrances. Products - Incense sticks, coils, cones, natural agarbatti & garden sticks & magical charcoal tablets. clubbed with a wide range of metal, glass and ceramic handcrafted accessories that include ash catchers, stick holders and lamp rings Production - 3 million sticks per day A special R & D department Designing, printing and packaging - All under one roof Annual Turnover- Rs 5 Crores, 50 employees
N Ranga Rao & Sons •
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Cycle Agarbatti is one of the world’s largest manufacturer of devotional incense sticks. Many people in India are illiterate, they recognize the brand via the bicycle picture Mysore based company. Only incense stick company whose advertisement campaigns feature in www.adsoftheworld.com website Mr Arjun Ranga, CEO and Managing Partner of the Rs 160crore NR Group Five-decade-old ISO-9001-2000 Certified Enterprise. Cycle brands currently have a 30
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Mahendra Perfumery Works Year of Establishment - 1961 Export Markets - South East & Middle East Export Percentage - 20% Production Type - Manual Memberships - Export Promotion Council For Handicrafts (EPCH) , Federation of Indian Chambers of Commerce & Industry (FICCI) Product Range – Arali Flower Incense Sticks (Agarbatti) – Mogra Incense Sticks (Agarbatti) – Rose Incense Sticks (Agarbatti) – Bouquet Incense Sticks (Agarbatti) – Sandal Incense Sticks (Agarbatti) – Champa Agarbatti (Incense Sticks) – Chinar Incense Sticks (Agarbatti), etc.
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Hari Darshan Sevashram Pvt. Ltd Incorporation :1980 x Export Markets :US, Europe, Gulf and Middle East Asia, China, Singapore Largest manufacturing infrastructure and installed capacities In House full time Research and Development and dedicated technical team. Only Incense manufacturer in India to have manufacturing units in North, Central and South India to capitalize on regional natural resources and competencies. In house fragrance development capability. In house packaging development and design capability. No. of professional staff : 160
Hurdles to Growth • • • • • •
Disorganized Sector Inefficient Capital No Big Players Low Profitability No automation Successful companies mainly target exports • Improper Distribution • Lack of government support • Less Promotion as compared to
Strategies for a better Tomorrow 1. ITC ‘s ASHA (Assistance in Social Habilitation through Agarbatti): •Start up support provided by ITC Training to workers Stipend during training period •Use of IT infrastructure to monitor the progress. •Over 1500 women trained in rolling of incense sticks •Initiatives by NGOs- SEWA, AOL, n-logue etc 6.Financial assistance – banks 7.Building quality in the supply Chain. 8.Export houses 9.Govt Assistance
• State Sponsored Melas / Promotions/ emporium . E.g.- Ganesh Chaturthi- Cycle Brand Emporium- Kaveri Emporium – known for Sandalwood incenses • Understanding Consumer needs. • Patent new fragrances for capturing global market – R&D • Establishing product specifications. • Partnership with NGOs/SHGs • Brand Building
The Incense Triangle SHG’s Self Help Groups •Essentially Groups of the Poor •A community organizing mechanism •Helping communities understand why they are poor and the debt trap •The issues among the poor are common and can also be solved commonly •Credit is necessary •Livelihood generation is the next step
Corpora te
Consumer Needs. Brand building Distribution
SHGs
Employment generation Fair practices Women’s empowerment
SSIs Domain knowledge Entrepreneurship Quality Fair practices 11
People Contacted /Assistance taken • Mr. Chetan Gowda Asst . Sales Manager Darshan International, Bangalore Phone : 91-802675315/ 26759461
• Mr. Pawan Director, N Ranga Rao & Sons, Address : NO. 1553, VANIVILAS ROAD, M G ROAD, MYSORE - 570004, KARNATAKA, INDIA Phone : 91-821-2521227/2361485 Mobile : +919980144197 Fax : 91-821-2361485
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