Agarbatti (Incense Stick) Making Business
अगरबत्ती बनाने का व्यवसाय · अगरबत्ती उद्योग
Make raw agarbatti on automatic machines from premix powder and bamboo sticks; sell raw sticks to perfumers or scent and pack your own brand.
Investment
₹5.5 lakh
Profit a month*
₹27,000
- Space
- 500 sq ft
- Staff
- 2 + you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
An agarbatti unit feeds premix powder and bamboo sticks into a small automatic machine that coats each stick. The raw sticks are dried and either sold by the kilo to perfuming units or dipped in fragrance and packed under your own brand. The machines are simple, need little space and can run from a room at home, so it suits families and women's groups. Raw agarbatti earns only a few rupees a kilo, so the profit comes from running several machines steadily and from scenting and packing part of the output yourself. The hard parts are thin raw margins, drying in the monsoon, and finding buyers who pay on time.
Skills needed: No formal qualification. Machine operation is learnt in a few days from the supplier. Selling your own brand needs a good fragrance supplier and shop-level selling.
Profit calculator
Change the numbers to match your town83 kg/day: Raw agarbatti (unscented), sold to perfuming units · 33 kg/day: Scented agarbatti, packed in boxes
Total investment
₹5.45 lakh
Your own money
₹54,502
Subsidy
—
Bank loan
₹4.91 lakh
Mudra Kishore
A typical month in year 2
| Sales | ₹2,35,125 |
| Raw material & packing | −₹1,66,856 |
| Electricity | −₹3,425 |
| Salaries | −₹21,000 |
| Rent | −₹8,400 |
| Other running costs | −₹8,925 |
| Operating profit | ₹26,519 |
| Loan instalment (EMI) | −₹11,437 |
| You keep each month | ₹15,082 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Automatic agarbatti making machine × 3About 8–10 kg/hr each, 1–1.5 HP, single phase | ₹1,95,000₹30,000–₹1.4 lakh |
| Powder mixerFor wetting and mixing premix | ₹40,000₹21,500–₹85,000 |
| Drying racks and trays | ₹20,000 |
| Weighing scales | ₹9,000₹6,000–₹15,000 |
| Dipping trays, drums and sealing machine | ₹20,000 |
| Work tables and storage racks | ₹20,000 |
| Agarbatti dryer machineadd-onFor monsoon drying | ₹60,000 |
| Machinery & equipment (without add-ons) | ₹3,04,000 |
| Udyam and other registrations | ₹2,000 |
| Box design and first printing | ₹20,000 |
| Electricity wiring and stabiliser | ₹10,000 |
| Trial production | ₹5,000 |
| Working capital 15 days of raw material, 15 days of credit to buyers, 1 month of expenses | ₹2,04,022 |
| Total project cost | ₹5,45,022 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Raw agarbatti (unscented), sold to perfuming units (per kg) | ₹ |
|---|---|
| Premix powder (0.75 kg at ₹22/kg) | 16.50 |
| Bamboo sticks, 8 inch (0.26 kg at ₹100/kg) | 26.00 |
| Bags and binding | 1.00 |
| Material cost | 43.50 |
| Selling price | 58.00 |
| Margin before running costs | 14.50 (25%) |
Price is the bulk rate paid by traders and perfuming units. It moves with bamboo stick prices.
| Scented agarbatti, packed in boxes (per kg) | ₹ |
|---|---|
| Raw agarbatti (own production) | 43.50 |
| Fragrance compound and diluent | 30.00 |
| Inner pouch, printed box and carton | 20.00 |
| Material cost | 93.50 |
| Selling price | 140.00 |
| Margin before running costs | 46.50 (33%) |
Wholesale rate for an economy local brand. Fragrance cost varies widely with quality; get quotes from two perfume suppliers.
Space, power and staff
500 sq ft
Rented shed · rent ≈ ₹8,000/month
Small-town rent. Can start in a spare room at home. Fragrance must be stored and used in a separate, ventilated area away from flames.
4 kW, single-phase
Bill ≈ ₹5,000/month at full capacity
2 staff + you
- 2 × Machine operators (the owner or family does dipping and packing): ₹10,000
Licences and registrations
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
GST registration
if applicableWhen: When turnover crosses the registration limit, or buyers want tax invoices · Cost: Free
Agarbatti is generally taxed at 5%. Confirm the rate for HSN 3307 41 and the registration limit with a CA.
Shop and Establishment registration
if applicableWhen: When you rent premises or hire staff · Cost: Small fee; varies by state
Legal Metrology packer registration
if applicableWhen: Before selling boxed agarbatti with MRP · Cost: Varies by state
Trade licence and fire safety
if applicableWhen: If you store fragrance compounds in quantity · Cost: Varies by municipality
Perfume compounds are flammable. Ask your local body and fire office what applies.
Trademark for your brand name
recommendedWhen: Before spending on printed boxes · Cost: Government fee from ₹4,500 for individuals and MSMEs
How it works
- Mix the premix powder with water to the right dampness.
- Load powder and bamboo sticks into the machine; collect the coated sticks.
- Dry in shade for a day or two (or in a dryer in the monsoon).
- Bundle and weigh raw agarbatti for sale.
- For your own brand: dip in diluted fragrance, dry, then pack in pouches and boxes.
Loan route
Mudra loan (Kishore)
Own money ₹54,502 · Loan ₹4.91 lakh · EMI ≈ ₹11,437
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹81,753 (general, urban) to ₹1.91 lakh (special category, rural). EMI ≈ ₹9,531–₹7,625.
Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Perfuming and packing units that buy raw agarbatti
- Agarbatti traders and wholesalers
- Kirana, pooja and general stores
- Temples and pooja samagri shops
Ways to sell
- Bulk supply to one or two perfuming units
- Shop-to-shop sales of your own boxes
- Weekly markets, temple-area shops and fairs
- Wholesalers in the nearest city
Season: Demand is steady and rises around festivals such as Shravan, Ganesh Chaturthi, Navratri and Diwali. Drying is slow in the monsoon.
Competition: Very many small raw-agarbatti units, so raw rates are tight. Branded sales are led by a few large companies; small brands sell on fragrance and shop margin.
Risks and how to handle them
Raw agarbatti rates fall or bamboo stick prices rise, wiping out the margin
Scent and pack part of your output, and keep at least two raw-material suppliers.
A single buyer delays payment or stops buying
Supply two or three buyers and do not extend credit beyond an agreed limit.
Sticks stay damp in the monsoon and grow fungus
Use a dryer or a ventilated drying room and do not bundle sticks until fully dry.
Fire from fragrance chemicals
Store small quantities, keep them away from heat and smoking, and keep an extinguisher in the dipping area.
Tips from the trade
- Be careful with buy-back offers from machine sellers; check that the buyer is real and visit an existing customer first.
- One good fragrance sold consistently builds repeat buyers better than many average ones.
- Weigh every bundle: buyers reject underweight or broken sticks.
Real examples
Cycle Pure Agarbathies (N. Ranga Rao & Sons)
Founded in Mysuru in 1948 as a small family unit; now one of India's largest agarbatti makers.
SourceQuestions people ask
Should I sell raw agarbatti or my own brand?+
Raw agarbatti is easier to sell in bulk but the margin is thin. Your own scented brand earns more per kilo but needs packaging, fragrance know-how and shop-level selling. Many units do both.
How many machines should I start with?+
One machine rarely covers rent and wages. Two or three machines with family members operating them is a common starting size.
How much investment is needed to start a agarbatti (incense stick) making business?+
About ₹5.45 lakh for a small unit: ₹3.04 lakh for machinery and equipment, ₹37,000 for set-up costs and ₹2.04 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a agarbatti (incense stick) making business make per month?+
At 55% of capacity, sales are about ₹2.35 lakh a month and operating profit about ₹26,519 before the loan instalment. After an EMI of about ₹11,437, the owner keeps about ₹15,082 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for agarbatti (incense stick) making?+
Automatic agarbatti making machine (₹30,000–₹1.4 lakh); Powder mixer (₹21,500–₹85,000).
Can I get a Mudra loan or PMEGP subsidy for agarbatti (incense stick) making?+
With a project cost of about ₹5.45 lakh, the bank loan of about ₹4.91 lakh falls under Mudra Kishore. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹1.91 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
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Sources
- TradeIndia: automatic agarbatti making machine listings
- IndiaMART: Vishalakshi Udyog agarbatti making machines
- IndiaMART: agarbatti premix powder prices
- IndiaMART: Narayan Industries (premix and bamboo sticks)
- Udyam Registration
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.