how to start agarbatti manufacturing business

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1. INTRODUCTION

The incense stick has the origin from India. Also, India is main exporter of incense sticks to the other parts of the world. Incense,manufacturing business has been running from ages in India as from Vedas itself. This business requires no special arrangements and knowledge, it can be easy to start this business. Also, this business is profitable as due to abundantly availability of raw material and has wide range of aromas and fragrances available in them. Making any aroma speciality and customizing the orders make the business successful.

2. CASE STUDY

# ZED BLACK AGARBATTI: They are the popular brand of incense stick in India. They are leading manufacturers of yoga series incense stick in India. They have their speciality for the fragrance of sandalwood. Also, they produce the floral incense and natural incense sticks.

# CYCLE PURE AGARBATTI: They are the largest incense stick manufacturers in India. They are most popular brand in India with 15% stake holders in India. Their parent company is run by NR Group of companies they are the manufacturers of fragrances, essential oils and prayer materials.

3. BUSINESS SWOT ANALYSIS

i). Strength

# Can be started as household business or small MSMEs with low budget.
# Less start up risk.
# Employment is generated.
# Raw material is cheaply available with plenty of resources.

ii). Weakness

# Time needed to grow the business.
# Profit margin is limited.
# Customers are involving their sales in foreign brands.

iii). Opportunity

# Retailers business or as a supplier/distributor or wholesaler
# Online selling of products
# Partnership with other similar brands

iv). Threat

# Demand is more in festive seasons only.
# Transportation and packaging cost more.
# Barriers in the global market or takes time.

4. OPERATIONAL PLAN

# Manual incense making machine: They are preferred for the high production type with lower cost having single or double pedal. They are cost effective machines as available in low cost price with having required mechanical force to pedal, so electricity is not necessary.

# Automatic making machine: These are the fully automated machine with high cost. Also the high professional machine having the capacity of 160 -200 sticks per minute production. They have the latest technology-based mechanism with customising design, size, incense, shape available.

# High speed automated machine: These machines usually preferred by the big brands as cost and rate of production are both high. They produce 300-500 sticks per minute with size adjustable upto 8`` to 12``. They require very less labour work participation.

# Dryer machine: As in case of manufacturing plant location is in the humid or moisture prone area, there is always need of dryer machine. This machine helps to dry the agarbatti raw.

# Powder mixer machine: For the mixing purpose this machine is used. It has the capacity of 10-20 kg mixing of dry or wet powder as per the rate of production.

5. SUPPLY CHAIN MANAGEMENT

The supply chain management is the process followed by every company which include the steps and basic stages of product from raw material to finished factory good. The following are basic procedure for it:

# Plan:the planning is the early stage of any business, there must be strategy about the service and demand of the customers to fulfil. Also, the necessities of market and customers choices. There must be main focus on the design of product as it yields maximum profit.

# Source: the second stage is the developing or sourcing all the sources needed for the product to produce or fetch to customer. For this there must be strongpublic relations with the supplier or the marketers, so that they supply with good quality raw material giving efficient pricing. Also, for the shipping, delivery and the payment of goods.

# Make: The third step is the producing the goods that need to be fetch to customer by the sources that are collected in the previous stage. In this fin shed goods are out for the delivery by passing through various steps of designing, producing, testing, packaging and lastly synchronizing. All these steps undergo by manager and its team which is fully vary from firm to firm as depends on their rate of production, employees, machines, quality served, output potential etc.

# Deliver: The lasts stage is the delivery step in which the finished goods are sent or ready for delivery. Also, they are loaded and unloaded to the desired location and sent to wholesaler or retailer market as per the demand varies. In this stage some unsold and defective products are collected and sent to factory again.