Agarbatti (Incense Stick) Making

About This Business

Start an agarbatti (incense stick) manufacturing unit, a traditional Indian cottage industry with consistent domestic demand and growing exports to global Hindu and Buddhist communities. India is the world's largest producer and consumer of incense sticks, with the industry worth over 3,000 crore rupees and growing 8 to 10 percent annually. KVIC and PMEGP provide subsidies up to 35 percent for this cottage industry, making it accessible for first-time entrepreneurs. Semi-automatic machines can produce 150 to 200 kg per day with just 2 to 3 workers, while fully automatic plants reach 1,000 kg per day. The business works particularly well in tier 2 and tier 3 cities with lower labour costs, and partnerships with established brands or large temples can provide steady offtake.

Skills Required

Steps to Start

1. 1Learn the manufacturing process: raw materials, mixing, rolling, drying, packaging
2. 2Apply for PMEGP subsidy through KVIC/DIC for machinery and raw materials
3. 3Purchase semi-automatic agarbatti making and mixing machines
4. 4Source raw materials: bamboo sticks, charcoal powder, jigat, perfume
5. 5Build distribution through local wholesalers, retailers, and online marketplaces

Registrations Needed

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