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times. Agarbattis are obtainable in different colours and with different perfumes. The burning time of agarbatti varies from 15 minutes to 3 hours depending on quality and size. Majority of agarbattis manufactured are of cheap quality containing only charcoal powder, low quality sandal wood powder with wood gum powder. Agarbatti industry is labour intensive cottage type of traditional activity in India. The main marketing centres are situated in Mysore and Bangalore in India. It can be taken up in rural areas without any difficulty. It requires only low technology for manufacturing the agarbattis. It is a product of National pride. MARKET Agarbattis are used by many communities in India daily for performing puja. Agarbattis are also used in some of the foreign countries. Hence, it has good demand. This industry can be set up with less investment in small areas. There are about 10,000 agarbatti manufacturing units in the country including tiny, small and medium, besides another 200 well-established ones having over 50 branded agarbattis. Nearly 12 lakh people are directly or indirectly employed by the industry. MANUFACTURING PROCESS Charcoal powder, white chip powder, jiget powder, sandle powder are mixed using water and dough is made. Dough is rolled on bamboo sticks normally. Raw agarbattis can be perfumed either by dipping in perfumed or by spraying the perfumes on the raw agarbattis. COMPETITORS ORGANISED SECTOR-Cycle, HEM, ITC,Mangaldeep sells through 5 lakh retail outlets in the country and its sales volumes has increased from 50 million sticks per month to 100 million sticks now. UNORGANIZED SECTOR- Sankranti, Ananth and Jayanti Domestic Products (all from Bangalore), Cottage industry of Aurobindo Ashram, Pondicherry, Prayer Dhoop Agarbatti (New Delhi), Swastik Industries (Chandigarh), Jayanti Products (Agartala) and Khadi and Village Industries Commission (KVIC) mainly Coimbatore. EXPORT India’s exports of agarbattis in 2005-06, as may be seen from the table, shot up steeply by 21.68 per cent when the same reached a level of Rs. 247.42 crore over Rs.203.33 crore in the previous year. Country-wise export trends reveal that USA continues to be the largest market. SWOT STRENGTHS -Eco-friendly product -Small area required -National Pride WEAKNESS -Labour dependent as there is barely any machinery used. -Climatic conditions as the raw materials are produced only in cool and dry areas like Mysore and Banglore and
II REGISTRATION Provisional Registration Certificate (PRC) • • • This is given for the pre-operative period and enables the units to obtain the term loans and working capital from financial institutions/banks under priority sector lending.Pune. Labour Regulations etc. . delivery and manufacturing department. Price and purchase preference for goods produced. Availability of raw material depending on existing policy. Permanent Registration Certificate Enables the unit to get the following incentives/concessions: • • • • • Income-Tax exemption and Sales Tax exemption as per State Govt.Number of employees is 10 where the employees in the packaging department are paid on the bases of piece wages. other approvals etc.e 10paise per packet or a salary of Rs.Jai Rao is the owner with 10 people working under him in the packaging. . Sale fluctuations due to off season which is from mid December to mid May.is a non-profit organization where over 100 village women are gaining training in rolling agarbattis. land. -The organizational structure is flat where Mr.3000 per month . Obtain various necessary NOCs and clearances from regulatory bodies such as Pollution Control Board.JAI SUGANDHALYA Ι CONSTITUTION -It is a sole proprietorship . i. Policy. Procedure for Registration Features of the present procedures are as follows: • A unit can apply for PRC for any item that does not require industrial license which means items listed in Schedule-III and items not listed in Schedule-I or Schedule-II of the licencing Exemption Notification.Vyakti Vikas Kendra.The employees in the manufacturing department are paid Rs. NAME OF INDUSTRY.The turnover is invested back into the business after deducting interest. Incentives and concessions in power tariff etc. Permanent registration of tiny units should be renewed after 5 years.4500 . Obtain facilities for accommodation. OPPORTUNITIES Increasing Demand as India is a religious country where people will always use it for pooja’s and during festivals Export as there are many NRI’s abroad and there are not many countries manufacturing agarbattis. THREATS Substitute Products-dhoop and loban Huge Competition from unorganized and organized sectors.
Wooden Planks for rolling. wooden racks.• • • Units employing less than 50/100 workers with/without power can apply for registration even for those items included in Schedule-II. No field enquiry is done and PRC is issued. buckets. 4 people are employed from Vyakti Vikas Kendra for manufacturing. Unit does not violate any locational restrictions in force. -Disposal of waste: The waste does not need to be treated as it is not hazardous to the environment and it is disposed at the outskirts of Banglore at Athivali Taluk. Drinking Water. Any accidents that occur at the workplace while doing the job are paid for. Hence the location Material Index will be more than 1. Social infrastructure: Masks provided for safety. if required etc. Once the unit commences production.e physical and social infrastructure Physical infrastructure: Rented land. Value of plant and machinery is within prescribed limits. Aid provided for on job accidents.Distributor and retailer. delivery cycle and raw materials. VII MARKETING STRATEGY Our motto: The motto of our company will be to provide high quality. blending vessels. 2 experienced trained labourers for packaging and 2 labourers for delivery. If the entrepreneur is unable to set up the unit in this period. PRC is valid for five years. -Sell through distributor in tapped and untapped sectors (starting with the metros) . drug license under drug control order. Industrial Environment: VI INFRASTRUCTURE There are two types of infrastructure i. III CLEARANCE IV SHED -Location Material Index: The industrial estate is on a 500 sq feet rented plot which is closer to the supply of raw materials in comparison to the market.g. he can apply afresh at the end of five years period. weighing balance. plastic trays. Unit applies for PRC in prescribed application form. confidence and support will be earned by giving them a % of the profit as . Unit is not owned. hand sieves. NOC from Pollution Control Board. The following form basis of evaluation: • • • The unit has obtained all necessary clearances whether statutory or administrative. at the time of evaluation. controlled or subsidiary of any other industrial undertaking as per notification. it has to apply for permanent registration on the prescribed form. Service with a smile and the customer is never wrong. Ammenities to employees: The employees are provided with a mask so that they do not inhale the bad odour. 2 from local area. mugs. e. V Personnel factors: There is no union as there is no middle management and the number of labourers are so few hence it is not union dominated. long lasting agarbattis at the most competitive prices within the stipulated delivery period.
M/s Ramachandra Pulverisers & Industries.commission.Prices will be kept competitive. . Bangalore – 2 PACKING (PAPER. Bangalore – 2 2. Bangalore – 26 2. 33-Town Rly. . 138 Akkipet Main Road.A Person will be appointed to constantly communicate change in price.e state promotion exhibitions and other local exhibitions to create and expand the earnings from the national sector. Bagalore-2 PERFUMES : 1.. . ADDRESSES OF RAW MATERIALS SUPPLIERS: 1. Gundopath Street.The incentives given may change according to size of orders received. 2. Bangalore – 53 BAMBOO STICKS: 1. New Tharagpupet. 62. POLYTHENE COVERS. Aggarbatis are eco-friendly so we can use green marketing in promoting it especially in metros and it can be one of our USP’s for international markets. New Extn.Detailed print ads to be issued to all potential retailers. Madras – 1 . 339 Bapujinagar. Salem – 1.To take part in various handicraft exhibitions i. M/s H. 53. demand. Tamilnadu.Pushpa Perfumery Products. . Bangalore – 53 3. This will differ for every deal. along with free samples. 60 Chinthamani Street. . competition etc.M/s Lakshmi Paper Industries. Mysore Road.P. in order to get immediate feedback. IV Main Road.The Paper Products Limited.Station Road. FUTURE MARKETING STRATEGY -Agent to be appointed to tap international sector (rules for incentives same) -To take up stalls in exhibitions organised by export promotion council of India in order to boost our exports. Nanjudiah Setty & Sons. Sultapet.R.M/s Ravi Flour Mills & Industries. POLYTHENE PRINTING AND LITHO PRINTING) 1. -Experiential marketing in the form of giving free samples to people outside selected retail stores . Ramaiah Arumugamgalli Kalasipalayam. Saibaba Sugandh Bhandar.
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