2. Industry Overview
India Agarbatti Market Size is worth Rs 2400 cr – 70 Billionn sticks
~Bamboo – 35,000 mts/annum
~Rawbatti – 60,000 mts/annum
Mostly hand crafted by cottage industries and NGOs in India
Growing at a rate of10% p.a
Exports- Rs 275 cr
Use of Incense
~India : Worship
~Overseas : Ambience creation Aroma Therapy
Kartikeya Verma
3. Agarbatti Industry
Highly Fragmented Industry
Market Products
Highly Fragmented 200 players
with 400 brands
Industry dominated by Local
Players
Top five players account for 20%
value
Top five pack /price combinations
account for only 25% of the industry
Large number of fragrances are
marketed
Kartikeya Verma
4. 800 crores
Export
200 crores
Domestic
1000 crores
The Market
2400
crores
1994 2010
Manufacturing Units
800 Registered 3000 Unregistered 400 Exporters
Unorganised sector and highly fragmented
Kartikeya Verma
7. Consumption Patterns
Urban
39%
Rural
61%
Urban
Rural
Low involvement product
No brand loyalty
Agarbattis are low involvement products whose
purchases are often impulsive
Purchases based on packaging, fragrance and pricing
Kartikeya Verma
8. Cost Structure
Masala
10%
Non-masala
60%
Packaging &
Marketing
30%
Cost Distribution Masala 10%
Non-masala 60%
Packaging & Marketing
30%
2%
• Raw Bamboo
8%
• Masala /Non-Scented Agarbatti
30%
• Perfumes
30%
• Packaging Material
20%
• Marketing
10%
• Miscellaneous
Kartikeya Verma
9. Marketing Approach
Superior fragrance experience [Conforms to IFRA norms]
Consistently superior product experience
Inputs for Priority Markets
Attractive & differentiated packaging – Fragrance locked
Product Quality rating Systems
Brand Health Tracker
A superior fragrance development and selection procedure
DEVELOPING BRAND PREFERENCES
Kartikeya Verma
10. Current market player
ITC
Mangaladeep
N. Ranga Rao & Sons
The Incense Group
Launched in 1948
Market leader in India with
Current market share 8%
Exports to 40 countries
Its Brand
Cycle agarbatti
Lia agarbatti
Flute agarbatti
Rhythm agarbatti
Launched its brand in year 2004
ITC the second largest player with
market share of almost 5%
Fastest growing brand
ITC signed a MOU with Orissa and
Tripura govt. for sourcing raw
materials
It provide employment for 10000
women in rural regions
2.1.
Others old Brands
Moksha Agarbatti
Cofounded in year 1966
Bangalore Based
Offer 35 fragrance
Nandi Agarbatti
Established in 1936
Bangalore based
Production capacity
1000 tons
Hem Incense
Established in 1983
Production facilities at
Mumbai & Bangalore
Bulk Exporter
Devdarsadan
Established in 1954
Manufactures Dhoop,
Agarbatti & Hawan
Samagri
Kisan
Established in 1998
Located in Sujabad,
Parao, Varanasi
Kartikeya Verma
11. ITC Incense Business Value Chain
Bamboo
Charcoal Jiggat
Raw Batti
rolling
Perfuming
Packaging
Marketing &
Distribution
NGOs
SSIs
ITC Limited
Kartikeya Verma
12. Raw Incense NGO Based Supply Chain
ITC Limited
Vendors
NGO
Women in
Different
Villages
Spread
over and
of more
than 100
Sq. Km
Order
Supplies
Raw
Material
Supply
Finished
goods
Brought
Back
Kartikeya Verma