written by Khatabook | July 13, 2021

How to Start An Agarbatti Making Business- Planning, License & More

Agarbatti is a Hindi word that means "incense sticks" in English. They are thin long bamboo sticks that range 8 to 12 inches in length and covered in aromatic paste produced from scented petals or other fragrant wood such as sandals. The Agarbatti manufacturing firm has a lot of potential because Agarbattis are used for religious purposes, and in festivals. The agarbatti industry has been one of India's labour-intensive cottage industries. Karnataka leads the way with Mysore and Bangalore as the main areas with manufacturing plants.

Agarbattis can be purchased in a variety of colours and fragrances. The burning time of an agarbatti changes based on its price and durability, from 15 minutes to hours. Agarbatti is also available in other forms, such as dashang (a sticky paste or powder used to make agarbatti), Dhup and cones, tablets etc.). Most agarbattis are produced with charcoal powder or low-quality sandalwood powder with a 50% wood gum powder mixture. Perfumes, refined resins, essential oils, natural fixatives like musk, amber,  civet, and synthetic aromatics are also used. 

Why should you start an Agarbatti Business?

It is a typical item and a necessary item in every family and holy places and other spiritually significant locations. The size of the agarbatti manufacturing business is determined by individual capability and the manufacturing capability of the agarbatti manufacturing unit. The agarbatti's market demand also influences it.

Agarbattis can be sold not just to Indian markets but also to other Asian countries. In 2017 and 2018, India shipped over 500 crores of incense sticks to Asian countries such as Japan and China. Such incense sticks are used in over 90 countries. Thus there is often a huge demand for them.

Starting an Agarbatti Business

You might be wondering how to start an agarbatti making business from home. Here is a step-by-step guide from the first phase, which involves business planning, to obtaining financing for this business in the latter stages. The Indian agarbatti industry is among the most active cottage industries globally, employing over 20 lakh workers.

Initial Planning For an Agarbatti Business

The price of an agarbatti machine is determined by its speed and overall output capacity.  You can start this manufacturing business at home with some minor machinery and equipment. 

 Agarbatti has always been in high demand abroad, so exporting it may be a better choice. This is a manufacturing industry that requires low-grade technology. As a result, the initial outlay in agarbatti manufacturing is relatively low. One might earn around Rs 500 for each 100 kg of 20 kg machine output, i.e., roughly Rs 25 per kg of production and commercialization. 

Various social institutes in Orissa, such as Aurobindo Ashram and Gayatri Ashram, produce distinctively aromatic agarbatties. In Orissa, Parimal Agarbatti, Berhampur, Suravi, Susree, and Indica are all quite popular. Even so, South India accounts for 70% of the manufacturers' total sales. You may build Home-based businesses in small towns and villages throughout the state to accommodate local demand. Raw materials are found in and around Cuttack, Bhubaneswar, and even Calcutta. 

Licenses Required for Agarbatti Manufacturing Business 

  • Company Registration: The first step in starting an incense-making business is to register your business. First, you must register the business as a company, proprietorship, partnership etc.
  • GST Registration: Registration for the Goods and Services Tax (GST) is required for all business owners. After completing the registration process, you would be issued a GST number that you may use to sell the goods or services.  
  • Employees' Provident Fund (EPF) Registration: If a manufacturing unit employs more than 20 people, EPF registration is required. 
  • Employee State Insurance (ESI) Registration: Businesses with more than 10 workers need ESI registration
  • Trade License: Every person who runs a business needs a trade licence. Local bodies such as corporations, municipalities issue trade licenses.
  • Small Scale Industries (SSI) Registration: Those who own a small scale company, must register to fulfill this registration whose investment in plant and machinery does not exceed Rs.25 lakh.
  • Pollution Certificate: This certificate is required, and it is obtained by inspecting the location where the manufacturing unit is located. The State Pollution Control Board does this task, after which one is permitted to run a business. 
  • Factory License: A NOC and a factory licence are required for large-scale manufacturing commercial units. 

Raw Materials Used For Making Agarbatti 

The materials required to make incense sticks are readily available in the local market. Look for or go to an agarbatti manufacturing unit or a raw material supplier. One's manufacturing capacity determines the quantity of materials needed.  

The base material of the Incense Stick is bamboo, which is commonly available in the local market and costs roughly Rs 120 per kg. You can also use stick manufacturing equipment to create your own sticks too.  

Details of Raw Materials Used For Making Agarbatti 

  1. Bamboo Sticks: Bamboo sticks 8 to 12 inches long are required.
  2. Raw Bamboo Sticks: If you're going to make incense sticks out of bamboo, you'll need to buy raw bamboo sticks. 
  3. Packing Materials: The agarbatti must be packed in an airtight container that keeps the smell of the agarbatti. 
  4. Different Color Powders: You can add various colour powders to make agarbattis look more appealing. The powders are as follows: 
  • Charcoal Powder 
  • Crude Paper 
  • Gum Powder, also known as Sticky Powder
  • Oil Of Sandalwood   
  • Nargis Powder 
  • Perfumes   
  • Jikit Powder  
  • Sawdust 

Adding Fragrance In Agarbatti Making

The adding of scent is a stage in the production process that is done separately. It is, however, optional. Most agarbatti makers sell their products without adding any aroma. If you're selling in a local market, you can do the same thing. Alternatively, anyone can add whatever fragrance they choose or conduct a market poll to find out which perfumes are most popular.  

Also Read: Best Small Business Ideas for Rural Areas, Villages, Small Towns in India

Space Required For Agarbatti making business

Since there is no specialised setup required for the agarbatti production business, it may be started from home or anywhere else. Still, it must be convenient to transport and have easy access to raw materials.  

The amount of space needed is determined by the number of machines to be installed. 

Machinery for Agarbatti Making Business

This is the last and final phase. In the agarbatti-making business, machines are crucial. There are many varieties of machines in the market, but you must choose one that fits your budget. There are various varieties of machines on the market. Advanced technology is used in the agarbatti production machine, which includes machines such as a drier and a powder machine.  

Manually controlled machines can be purchased with either a single or double pedal, depending on which is more comfortable to operate in order to achieve high production at a cheap price. Because of the pedal mechanism, this machine can be operated without the usage of electricity. It can be operated manually by using pedals.  

Agarbatti Making Machines

Let's say you wish to go into high-volume production. In that scenario, these automatic agarbatti producing machines are the best option because they create roughly 160 to 200 sticks each minute using cutting-edge technology.  

These devices can also be used to create Agarbatti in a square shape. These automatic Incense Stick producing machines are available in a variety of appealing styles, sizes, patterns and forms to meet the needs of the consumer. 

  1. High-Speed Automatic Agarbatti Making Machine: 

Since they are totally automatic, high-speed automatic agarbatti producing machines require minimal labour. These machines have the capacity to create 300 to 450 sticks per minute. These devices have the ability to change the length of incense sticks produced. You can adjust the height of your machine from 8 to 12 feet.  

  1. Dryer Machine: 

If the region wherein incense sticks are made is damp, a dryer machine to dry raw agarbatti is required. Even during the rainy season, this drier machine is useful.  

  1. Powder Mixer Machine: 

A powder mixer machine is highly useful for generating a homogeneous mixture of raw materials for creating agarbattis because it can mix the exact amount of wet or dry powder combination. This machine is customized by the supplier to the customer's manufacturing capacity. The powder mixer machine has a mixing capacity of 10 to 20 kg per minute.  

Applying for loans 

When starting up, one may not have the finances to purchase the necessary machinery. Banks offer financing for starting a business. The following are some of the aspects of the business loans available:  

  • Their interest rates are lower. 
  • It's simple to distribute. 
  • Online applications are available. 
  •  It only necessitates the most basic documentation. 
  •  Easily accessible.  
  • One can readily set up their production unit after obtaining a loan.  

Where Can I Sell Agarbatti?

First, sell your product locally. Retail distribution is the finest way to run things in our country. In general, channel distribution entails enlisting the services of distributors and merchants for secondary sales. Supermarkets, malls, shopping complexes, and app-based shops are the available market penetration possibilities.  

In the Indian global marketplace, television advertising is quite essential. You must make an attempt to make your brand and promote your products. The long-term success of the agarbatti-making firm is ensured by a strong distribution channel.  Several businesses now also provide doorstep delivery.

What are the processes involved in making agarbatti

The steps are as follows: 

Step 1: Mixture Preparation -It's necessary to make a paste form of gigatu, charcoal, and white chips.

Step 2: Placing the semi-solid mixture in the machine and inserting the bamboo stick.

Step 3: Collect agarbatti: The incense sticks have been prepared.

Step 4: Dry it in the sun or in a dryer for a day.

Also Read: 10 Best Wholesale Business in India 2021-22


If you wish to establish this business, you should do so right away. Visit the nearest industrial facility and learn more about it. Learn about agarbatti manufacturing business and how to make agarbatti processes in detail so that you can execute your business successfully. We hope through this article you will be able to get a headstart on starting your own agarbatti business


1.What is the best place to sell Agarbattis? 

Agarbatti can be sold in the market place or exported outside of the country.  

2. What is the definition of raw agarbatti?  

Agarbatti that hasn't been scented is known as raw agarbatti.  

3. Where can raw agarbatti be sold?  

Raw agarbattis can be sold to fragrance manufacturing companies. They'll put fragrance in it and sell it in the store.  

4. Is it possible to sell agarbattis online? 

Yes, by developing a website or using an e-commerce platform, one can sell their agarbattis online. 

5. What are the several segments of the agarbatti-making industry? 

Incense Stick Making Unit, Bamboo Stick Supplier Unit, Raw Material Supplier Unit, and Perfume Adding Unit are the diverse kinds of the agarbatti making business.  

6.What are among the most popular agarbatti fragrances? 

Rose, lavender, marigold, sandalwood, and cedarwood were one of the most prominent perfumes.  

7. Is it possible to produce agarbattis that are environmentally friendly? 

Yes indeed, eco-friendly agarbattis made with dried flowers are healthier and much more popular nowadays.   

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