Project Report

Product :- Raw Unscented Agarbatti

Prepared By:
Mansi Mahale
Prachi Jaiswal
Arpita Pali
Final Semester, B-tech,
Chemical engineering,
Laxminarayan Institute of Technology, Nagpur
 Overview

AMP Manufacturers will offer raw unscented agarbatti in

Nagpur.

According to local vendors of Nagpur, incense sticks are

sold in the city back since the British rule. Incense sticks
were traditionally sold in India and is used for
mythological as well as room freshening purposes.

The incense sticks would be sold in bulk to manufacturers

of perfumed incense sticks. We will always keep stock of
raw materials of incense sticks on hand, to fulfil our
customers’ demand.

For delivery, we offer 10 kg incense sticks packed in jute

bag with complete precautions to avoid breaking of sticks.
The incense sticks would be packed in bundles of 100 to
make it easy for our customers to keep a count of sticks
and hence making their packaging easier. We will offer 8
inches and10 inches.
 Location

The specific requirement of space depends on the

production output and how many machines are to be
installed. However, a 1000 sq ft covered area is perfect
for a small scale operation. Major requirement of
location is sufficient water and electrical connections.

After finalizing the space, a floor plan will be drawn

prioritizing the principle needs of a plant. The floor plan
will particularly aim to reduce the cost of production as
well as labour work, in order to maximization of profit.
Following are the ways to prepare an effective floor
plant:
• Installing machines near the raw material storage area.
• Planning the electrification according to the location
of machines.
• Setting packaging machines near the storage of
finished goods.
 Techno-feasibility Report

1. General Information:

Name of Entrepreneurs: Arpita Pali, Mansi Mahale, Prachi

Jaiswal

Name of Project: Production of raw unscented agarbatti

Location: Nagpur
Type of Organisation: Small Scale Industry
Name of firm: AMP Manufacturers
Address:

1.1 Educational Qualification: B-tech (Chemical

Engineering)
1.2 Special training: Agarbatti making course by Lansh
Training centre, Mumbai
2. Details of project:

2.1 Manufacturing:
Total
Sales
Sr. No. Item Quantity/
Revenue/Year
Year

Raw Unscented
1 18000 Kg 1800000
Agarbatti

2.2 Machineries/ Equipments:

Sr. No. Name Quantity Cost Supplier

1 Weighing 1 16500 Tamilnadu scale
Machine industries
2 Semi automatic 3 195000 Ketan Agarbatti
paste applying works
machine

3 Dryer 2 50000 Param Agarbatti

works
4 Laptop, Printer 1 50000
2.3 Raw Materials:
Proper proportion of raw materials is very essential
step in production of agarbatti. A rough estimate of ratio
of raw materials is mentioned below. This ratio can be
modified as per requirement.

Gum powder- 50%

Jigat powder- 25%
Charcoal Powder- 25%

Sr. Item Total Annual Cost Sources

No. Requirements
1 Bamboo 4320 Kg 4,10,400 Nagpur Agarbatti
Sticks (95/Kg) Marketting
Associates
2 Jigat 3456 Kg 2,41,920 Anand organic
Powder (70/Kg) products

3 Charcoal 4320 Kg 51,840 Shubhsamay

Powder (12/Kg) Products

4 Gum 1440 Kg 48,960 Max Adhesive

Powder (34/Kg)
5 Jute Bags 300 Kg 4,800 Jai Mahalaxmi
(16/Kg) Trading Company
2.4 Utilities:

Sr. No. Particulars Annual Total Annual

Requirement Expenses (Rs)
1 Electricity 8400 units 50400
2 Water 1200

2.3 Man Power

Sr. No. Particulars No. Total Wages &

Salaries

1 Skilled 1 15000
2 Semiskilled 1 8000
3 Unskilled 5 25000
4 Office Staff 1 8000
3. Market Study

India is largest incense stick maker and currently the

export market sector is about 450 crore. With demand
for branded agarbatti growing at nearly 15% every year.
Agarbatti, mostly a handmade product in India, is
exported to almost all other countries in the world. India
is knowns for perfumed incense sticks. In India, a wide
variety of agarbattis are available in different shapes,
colours and fragrances at very competitive prices, from
sandalwood, lavender, rose, mogra etc.
Today, India exports agarbatti to more than 160
countries including US, Nigeria, Malaysia and UK. In
FY2016, US was the largest importer of icense sticks
from India with an import value of $11.3 million,
followed by UAE at $6.23 million and Nigeria at $5.85
million.
Nagpur has a large market for sale of incense sticks. As
confirmed by a local vendor of incense stick, the yearly
turnover of the local city market is about 40 to 50 crore.
Nagpur has a large number of wholesale as well as retail
shops of incense sticks. Some markets of Nagpur are
dedicated to selling only incense sticks. Reshamwali
street in Itwari and Gandhi gate, Mahal are some
examples of such markets. Nagpur is also home to
many production houses of incense sticks which makes
it a competitive market
4. Cost of project
4.1 Fixed cost:
Sr. No. Item Annual Value (Rs)
1 Land/Building 500000
2 Machinery 311500
3 Furniture 50000

4.2 Working Capital:

Sr. No. Item Value(Rs)
1 Raw material stock 63240
2 Finished product 20000
3 One month production expenses 10000

4.3 Total Cost of Project:

Sr. No. Particulars Value(Rs.)
1 Fixed Capital 861500
2 Working Capital 1118880
3 Some Pre-commissioning cost 100000
to company
4.4 Source of finance:

Sr. No. Particulars Value (Rs.)

1 Self contribution 500000
2 Bank loan 1000000
3 Working capital loan 500000
4 Subsidy 1000000

4.5 Profitability:

Sr. No. Description Value (Rs.)

1 Sales revenue 1800000
2 Manufacturing Expenses 1181520
(2.3+2.4+2.5)
3 Distribution Expenses 18000
4 Administration Expenses 36000
5 Interest 205000
6 Depreciation 15575
7 Gross profit [1- 343905
(2+3+4+5+6)]
8 Taxes 11189
9 Net Profit (7-8) 332716
6. References.

1. Project report on agarbatti manufacturing Business

Development Department Orissa State Financial
Corporation
2. Incense Sticks Production. Agarbatti
Manufacturing Buisness Plan. By Nir Project
Consultancy Services.
3. MakeIn Buisness Agarbatti Making business plan
4. MUVSI motivating small scale biz. How to Start
Agarbatti Making Business