§1What this business is
Agarbatti is used in worship, festivals, weddings and as an air freshener. The KVIC model profile uses hand rolling on wooden desks with simple tools; units often give raw material to women who roll sticks at home. The profile counts 2,500 kg of agarbatti a year, sold as 1,25,000 packets of 20 sticks.
Capacity: 2,500 kg of agarbatti a year — 1,25,000 packets of 20 sticks.
§2Is it right for you?
Who it is for
Someone who can organise home-based rollers and sell to local shops and temples.
Who it is not for
Someone hoping for a quick large profit — margins are thin and brands compete hard.
Advantages
- Simple know-how and cheap, portable tools
- Can start small, even at home
- Steady demand from worship and festivals
- Gives home-based work to women
Drawbacks
- Very crowded market with many brands
- Profit per packet is small
- Raw material quality (masala, bamboo sticks) varies
- Building cost takes most of the capital in the profile — renting cuts it
Skills you need
- Mixing masala and perfume
- Organising and paying home rollers
- Packing and branding
- Selling to kirana and puja shops
Why difficulty 1/5: Simple tools and process; the challenge is selling against established brands.
§3Market
Who buys
- Households
- Temples and religious functions
- Puja-material and kirana shops
How it sells
- Kirana and puja shops
- Wholesalers and distributors
- Fairs and festival stalls
Good to know
- The profile notes agarbatti also earns foreign exchange through overseas demand.
- Most rolling work in the trade is done by women at home.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Wooden rolling desks, patla, kadai, spoons, measuring glass, tin trays, aluminium vessels, blow-lamp stove, weighing balance, jars | 1 set | ₹60,000 |
From: KVIC Project Profile — Manufacturing of Agarbatti (PMEGP)
- Agarbatti raw materials (masala powder, bamboo sticks, perfume)₹6,37,500 a year in the profile
- Packaging material₹2,00,000 a year in the profile
From: KVIC Project Profile — Manufacturing of Agarbatti (PMEGP)
In our raw material database
§5Licences & registration
- Udyam
- GST
- Trade licence from the local body
- Legal Metrology packaging registration for packed goods
§6Schemes & subsidies
The KVIC profile was made for PMEGP; MUDRA Shishu or Kishore suits a loan of this size.
§7Money
How the investment is worked out: KVIC profile: capital expenditure ₹4.60 L (shed 800 sq ft at ₹500 = ₹4.00 L; equipment ₹60,000 — rolling desks, patla, kadai, trays, vessels, blow-lamp stove, weighing balance, jars) + working capital ₹2.64 L = ₹7.24 L, rounded to ₹7.25 L.
Working capital: Working capital ₹2.64 L per cycle (4 cycles a year) against a yearly cost of production of ₹10.56 L.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Price competition from big brands
- Perfume and stick price rises
- Unsold stock losing scent
- Uneven quality from home rollers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working agarbatti (incense stick) rolling unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Agarbatti (Incense Stick) Rolling Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.