written by | October 11, 2021

Agarbatti Business


All Hindu temples have a characteristic smell and we all are familiar with it. A calming fragrance that creates an aura of peace. It is the smell of the incense stick or commonly called agarbatti. Indian Hindu households use it regularly for worship and as an offering to the god. It is also used for therapeutic purposes. India is a land of mystic culture and spirituality has dwelled in us. Incense stick has been part of our culture from time immemorial and the usage is still prominent. The agarbatti business is a massive employment producer in our country as the consumption/demand is high. Between 2020-25, India’s Agarbatti Market is likely to grow at a CAGR of 6%  that shows this is the right time to invest in this business. 

If you are interested to set up an agarbatti business, here is a business plan for you:

Create a Plan 

If you are manufacturing, you need to understand it is not an easy task and requires a good understanding of the science behind manufacturing your product. Your scale of agarbatti business will depend on it a lot. With that decide what will be your reach. If it is an offline store, will you be heading out deliveries in your local circle or are you willing to extend your business to online mode? Will you deliver out of your town or within it? Decide the storage area you are going to keep your goods in.
The growth will only follow if you thrive in the market and the agarbatti business needs investment and time when you are creating a new brand. You will also need a workforce that will help in the making of agarbattis. Testing has to be done to check if the composition is safe along with finding a place where all this can be manufactured. So, plan accordingly.

Do your research

An agarbatti business although looks like an easy venture to open, and rightly so as it manufacturing candles is not as tough but you have to do a lot of research about how the market functions and what is the demand and supply chain in this business. If you are manufacturing your products you must have knowledge of the ingredients you are putting in your agarbattis. You need to have a great shopkeeper’s skills and a compassionate personality. You must know how to attract customers to your shop.

Decide the size of business

The business has a lot of scopes to grow but keeping in mind that you are starting an agarbatti business and arranging resources for it can be a task in itself, it is better to start small and develop as your customer base develops. You also have to take care of the quantity that you produce and if you are able to sell enough of it. 

Decide on product

There are different types of agarbatti already available on the market, you have to first decide what are the qualities your agarbatti has and how is it different from other existing companies’ products. Is it smoke-free, what are different fragrances you have used, how many flavors it comes into, is it allergen-free, and so on. You have to learn about the science of making the product and even the business and marketing part of it. Learn from where you will procure your raw material. You’ll need bamboo sticks for the base. Get yourself a good distributor for raw material. The business will expand and the list can always increase but decide first what is your introductory range and how influential it is and will it get enough attention.

License and Permit

To start any business in India, you need to have legal permission sorted beforehand to avoid any hassles with government officials. You’ll need to get yourself registered as a business person, get FDA approvals, and get all the documentation handy. Get your product tested and make sure it does not cause any allergens that may induce reactions to the users. If it has an ingredient that typically causes the reaction, state all the ingredients in the packaging with the disclaimer.
If you are making your new brand, make sure you get a patent by your brand name so no one can copy your products.

Storage space

Even if you are making your products or just selling products from different brands, you’ll need storage space. Since you are looking to start an agarbatti business, depending upon the space you need for manufacturing and packaging look for a place that is big enough to accommodate all of your raw material and equipment and has enough space for all of the workers to work in the lab.


The location of your agarbatti business matters a lot. Try to keep your shop away from a place where there are already several stores available. Open a store in a densely populated area so even if there are competitors around, you will always have people buying from you. Buy or rent a space that is big enough to equip all your agarbattis making equipment and has storage space for your items. For factory choose a place that is away from the main city and follow all safety measures

Buy equipment and machinery

Research about the machinery and equipment required for you to set up an agarbatti-making factory. Buy good quality machinery which lasts long. Get yourself machinery for packing purposes too. You can also opt for fully automatic machines as there is a variety of them available easily and are cost-efficient. 

Get the manpower

You will require a group of people who are ready to work hard. Hire labor for loading and unloading, the technician who is going to operate the machine and other workers for water and electricity control, etc. Think about all the prospects where you will require human effort and get yourself enough people to run your business smoothly

Generate funds

This is amongst the first things to do. You are setting up an agarbatti business and although this is a small scale business, it will require a principal investment. Get yourself sponsors who are willing to support a local business and have your back

Go online

Setting up any business requires a strong local connection and communication so that the business can propagate but with the rise in the use of e-commerce, things have become a lot easier. Make a website for your agarbatti business and set delivery boundaries according to yourself. Arrange your products in different categories and use various models and tools which are available online to make your website catchier and more attractive. 

Social Media presence and Marketing

Be ready to do a lot of marketing. Social Media is used by almost everyone around the globe. It is almost certain that at least one person in a household must be using any social media platform. Putting up pages on Facebook and Instagram and asking youth in youth in the locality to share it amongst friends, developing a strong SEO, and investing in marketing offline can bring great audience attraction to your store. Putting up ads with discounts and amazing offers are always a plus. Along with online, spending on offline methods to propagate business is necessary. Go old school and hand our pamphlet whenever a customer arrives. Since you already have an offline store and most customers who have done business with you will keep your number saved, you can invest in WhatsApp Business and use its marketing tools to propagate your business. It is convenient to use and digitally provides a personal touch as the medium is one-to-one messaging which has become one of the best provisions of converting prospects to customers. Remember to greet them nicely and make them feel important.

It is exciting to see a lot of entrepreneurs working with full force and empowering themselves by setting up a small business. To open any business, one should be ready to work hard and show a lot of perseverance and determination. Any business will have good and bad days but it depends on the owner how they want to go about it. Your Agarbatti Business is going to be the same. Don’t get overwhelmed and enjoy the process. All the best!


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