Executive SummaryAgarbathis also known as incense sticks, are made from aromatic plants and essential oils extracted

from plants. When lightened, these release a fragrant smoke, which finds use in the religious activities, prayers, and therapeutic and aesthetic purposes. Agarbathi have been used since times immemorial as an integral part of Hindu deity worship in India. India is exporting a wide range of agarbathi or incense sticks that have natural, exotic fragrances extracted from jasmine, sandalwood and rose. These fragrances spread the ambience and tranquility. The incense sticks are packaged attractively. Indias exports of agarbathi in 2011-12 shot up steeply by 21.68 per cent. USA continues to be the largest market. Since USA is the largest export market for incense stick this project is aimed at finding the potential markets in the USA and then finding the appropriate entry mode for entering these markets and the marketing strategies to sell in the product in the particular region. The other major markets witnessing steep growth comprised Djibouti (92.74 per cent), Sri Lanka (57.92 per cent), Australia (53.75 per cent), Spain (46.43 per cent), Mauritius (46.04 per cent), Chile (38.99 per cent), Egypt (33.51 per cent), Malaysia (33.32 per cent), UAE (28.53 per cent), South Africa (26.78 per cent) and UK (26.58 per cent). On the other hand, the markets showing a negative growth during the period included Italy (48.45 per cent), Brazil (14.55 per cent) and France (3.49 per cent).