Agarbatti manufacturing business
Agarbatti Making Machines –
Cost of agarbatti making machine depends on its speed and total production capacity. Generally, a good machine will cost you around Rs 1,20,000 – Rs 1,50,000. These machines will produce approximately 100kg raw agarbatti in 12 hrs. It is advisable to select the nearest dealer to ensure smooth service and maintain
- Raw Materials – Raw materials used in the making of agarbatti are coal powder, Gum powder, Bamboo sticks, Jikit powder, perfumes, etc.
- Location & Machine Installation and Training – You can easily install 4 machines in 200 sqft or even more than that. Machines are not that bulky, it is light weight and easy to operate. You will need one dedicated staff in every machine for smooth production of agarbatti.one dedicated staff is needed for every machine. If you have five machines then five staffs with special training will be needed to operate that machine. You have to learn and train your staff about machine. Apart from 5 staff for 5 machines, you will require 3 more additional staff for mixture making, agarbatti drying and packing.
- Preparation of Mixture or Masala – This is very important part because if your mixture is not accurate the agarbatti will not burn till end.
- Loading Mixture – After the preparation of mixture, load them into machine with bamboo sticks and make raw agarbatti. You can produce 10kg of raw agarbatti in one hour from 1 machine but initially it will be 5 – 6kg.
- Collect Agarbatti – One dedicated staff is needed to collect the raw agarbatti produced. He/she will then keep that agarbattis in sunlight for drying up.
- Dryer Machine – If your manufacturing unit roof does not get direct sunlight then you should buy a dryer machine. The cost of dryer machine is around Rs 35,000. Dryer machine is also beneficial for rainy reason.
Adding Perfumes – This is separate branch in this business. Many raw agarbatti manufacturers do not add perfumes by their own. They only sell raw agarbatti to the company who adds perfumes. You can directly sell your raw agarbatti to those companies easily with good profit margin. If you want to add your own perfume and to build your own brand then go ahead and research some new fragnance. With the help of proper marketing you can create your own brand in short time.
Profit Margin in Agarbatti Making
Agarbatti making is very profitable business and you can easily make Rs 500 – 700 as profit from 1 machine everyday.Raw agarbatti will give your profit of Rs10/kg. On the other hand, scented agarbatti will give you more profit i.e Rs 25 – 30 per kg approx.
Licenses and Permits Required in Incorporating this Business
Company Registration: The first step in commencing business to establish it as an artificial legal entity either in the form of the firm, Limited Liability Partnership or company. Applicant needs to determine as per the legal pattern and register accordingly.
GST Registration: After the implementation of GST, it is mandatory for every business carrying out a taxable supply of goods or services and whose turnover exceeds the threshold limit to register under GST and obtain GST number.
PF Registration: If there are more than 20 employees in the company or manufacturing unit, then it is obligatory upon the unit management to obtain EPF registration.
ESI Registration: It is mandatory in India for all Businesses that employ 10 or more employees to obtain Employee State Insurance (ESI) Registration.
Trade License: It is mandatory for the applicant to take a trade license from the local authority for operating in that city.
SSI Registration: The applicant is not compulsory obliged to take SSI registration, they may apply for the registration for being an SSI unit.
Pollution Certificate: It is mandatory for every establishment before commencing its activity to obtain No Objection Certificate from the State Pollution Control Board
Factory License: It is mandatory for the commercial large-scale manufacturing unit to Obtain Factory License.