PURPLE
AGARBATI
GROUP - 8 (IT-B)
INTRODUCTION
Purple Agarbatti is an incense stick industry that
makes incense sticks from flower waste. We create an
- incense stick that is not fully dependent on charcoal so
it is free from all toxic chemicals and is eco-friendly. It
is a biodegradable product. The length of each incense
stick is approximately eight inches.
PRODUCT
DISCRIPTION
Purple Agarbatti offers eco-friendly incense sticks
made from repurposed flower waste sourced from
temples, churches, and cemeteries. Designed with
sustainability in mind, these sticks use minimal
- charcoal and natural binders like guar gum. Infused
with natural aromatic oils, they provide a calming,
long-lasting fragrance. Each eight-inch stick is rolled
around a bamboo core for an even burn. The
packaging is made from recycled and biodegradable
materials, reflecting our commitment to environmental
responsibility.
Advantage Of
03.
Handcrafted Quality: Each stick
Product
is handcrafted, ensuring high
quality and a consistent, pleasant
aroma.
Eco-Friendly: Made from flower
01.
waste, these incense sticks are
Sustainable: By repurposing
biodegradable and contribute to
04.
waste flowers, Purple Agarbatti
reducing environmental waste
promotes sustainability and
supports a circular economy.
Chemical-Free: Free from toxic
02.
chemicals and with reduced Reduces Stress and Anxiety:
reliance on charcoal, they are The natural aromas of Purple
safer for health and better for
indoor air quality. 05. Agarbatti incense sticks are
known to promote relaxation,
helping to reduce stress and
03.
anxiety, and creating a calming
atmosphere in any space.
01.
Flower Waste Collection and Processing
02. 05.
Manufacturing Process Technical Regulatory Compliance and Quality
Feasibility Control
03. 04.
Alternative to Charcoal Scalability
09 Flower Waste Collection and Processing
Feasibility
Technical Feasibility: Collecting and processing flower waste from
temples and churches is simple, with basic machinery for
cleaning, drying, and grinding readily available and effective
Manufacturing Process
Feasibility: The process of mixing flower waste with natural
binders can be done using manual or semi-automated
equipment, making it practical for both small and large-scale
production.
Alternative to Charcoal:
Feasibility: Substituting charcoal with natural binders and
wood powders maintains burning efficiency while ensuring an
eco-friendly, chemical-free product.
09 Scalable Production
Feasibility
Technical Feasibility: The production process can easily scale from
manual to semi-automated systems, increasing output as
demand grows without major technical challenges.
Regulatory
4o Compliance and Quality
Control:
Feasibility: The product meets eco-friendly safety and quality
standards, with consistent quality ensured through controlled
mixing and drying, resulting in reliable incense sticks
Location
Purpose: To identify the optimal location in India for establishing a purple agarbatti business, considering
factors such as raw material availability, market demand, and production costs.
Scope: The analysis will focus on key regions in India known for their agarbatti production and market
potential.
Suitable location : Karnataka
1. Cultural Significance:
Karnataka has a rich cultural heritage and a strong tradition of using agarbathis in religious and cultural
ceremonies, ensuring a consistent demand.
2. Cost Efficiency:
Generally, operational costs, including labor and real estate, might be lower compared to major
metropolitan cities like Chennai.
3. Infrastructure:
Well-developed industrial areas with adequate infrastructure, including transportation, power supply,
and water availability.
LAND & BUILDING
Total Land Area
Total Land Area: 25 Cent
Building Coverage: 10000 sq. ft.
Building Specifications
Manufacturing Unit: Quality Control and Testing Area:
Size: 7,000 sq. ft. Size: 500 sq. ft.
Storage Area: Extra Space:
Size: 1500 sq. ft. Size: 1,000 sq. ft.
Office Space:
Size: 1000 sq. ft.
RAW MATERIALS
1. Bamboo Sticks:
Use: Serve as the core structure of the agarbathi. They
provide support and shape to the incense stick2.
2. Dried Flower :
Use: Provides natural fragrance and color to the agarbathi.
It is an eco-friendly alternative to synthetic fragrances3.
3. Aromatic Compounds (Essential Oils):
Use: These are the primary sources of fragrance in
agarbathis. Essential oils from flowers, herbs, and spices
are used to create various scents1.
4. Gum Tragacanth:
Use: Acts as a natural binder, helping to hold the powdered
ingredients together and ensuring the agarbathi maintains its shape.
5. Guar Gum:
Use: Another natural binder that helps in the formation of a uniform
paste, improving the texture and burning properties of the
agarbathi.
6. Packaging Materials:
Use: Includes paper, cardboard, and plastic wraps used to package
the finished agarbathis. Proper packaging ensures the product
remains fresh and protected during transportation and storage.
MACHINERY
1. Grinder:
Use: For grinding petals of dried flower into powdered form.
2. Powder Mixing Machine:
Use: Mixes raw materials like bamboo charcoal, dried flower waste,
wood powder, and binding agents.
3. Automatic Agarbathi Making Machine:
Use: Automates the process of rolling the dough onto bamboo sticks,
ensuring consistent size and shape of the agarbathis.
4. Drying Machine:
Use: Automates the drying process of rolled agarbathis, ensuring they
dry evenly and quickly.
LABOUR
1. Production Workers: (15) Operate machines. Responsible for the
production of agarbathis.
2. Quality Control Inspectors : (3) Inspect finished agarbathis and
maintain quality control.
3. Packaging Workers : (4) Responsible for packaging finished products
into boxes.
4. Technicians (5): Skilled in maintaining and troubleshooting
manufacturing machinery, ensuring continuous operation and
minimizing downtime.
5. Administrative Staff (5): Handle operational management, logistics,
procurement, and sales, ensuring smooth business operations and effective
coordination between departments.
6. Supervisors: (3) Oversee production and packaging processes. Coordinate
work schedules and assign tasks.
7. Warehouse Workers : (5) Maintain inventory records of raw materials and
products.
8. Cleaning Staff (5): Ensure a hygenic working environment.
MARKET ANALYSIS
Market Overview
The Indian incense sticks (agarbatti) market is expected to exhibit a CAGR
of 8.17% during 2024-20321.
The market is driven by the increasing consumer preference for incense-
based products for religious, spiritual, meditational, and therapeutic
purposes1.
FINANCIAL FEASIBILITY
Source Of Funds
1. Grants (15%): Rs. 10,92,000
We will be acquiring grants and funds from Karnataka Startup Policy ,
KSIC and Start-Up India schemes.
2. Equity (40%): Rs. 29,12,000
We will be meeting with angel investors and venture capitalist firms to
pitch our idea and acquire potential shareholders to fund our business.
[Link] Loans (45%): Rs. 32,76,000
We will be taking the remaining amount in the form of bank loans at
subsidized interests, which we will be repaying once we start making
profit.
TOTAL CAPITAL COST = 72,80,000
Cost of Production
Land = 25 cents * 1.5 lakhs = 37.5 lakhs Registration = Rs. 20,000/ -
Building Cost (10,500 sq, ft.) = 15 lakhs Market Research & Planning = Rs. 1,00,000/-
Machinery = 13.6 lakhs Equipment Installation = Rs. 30,000/-
->Grinder: = 2.4 lakhs Electrical & Plumbing Installation = Rs. 20,000/-
->Powder Mixing Machine: 2 lakhs Employee Training = Rs. 1,00,000/-
l ->Automatic Agarbathi Making l TOTAL PRE-OPERATIVE COST = Rs. 2,70,000/-
l Machine: = 4 lakhs
l ->Drying Machine: = 3.2 lakhs
->Packaging Machine = 2 lakhs
Transportation Vehicle = 4 lakh
CAPITAL COST = Rs. 70,10,000/-
TOTAL CAPITAL COST = 70,10,000 + 2,70,000 = 72,80,000
Cost of Production
Salary = Rs.43,80,000/- Flowers = Rs.6,57,000/-
Building Maintenance = Rs. 1,00,000/- Bamboo = Rs.17,52,000/-
Equipment Maintenance = Rs.1,50,000/- Aromatic Compounds = Rs.21,90,000/-
Advertising and Marketing = Rs.2,00,000/- Gum Tragacanth = Rs.10,95,000/-
Insurance = Rs.1,00,000/- Guar Gum = Rs.2,73,750/-
Packaging Materials = Rs.4,38,000/-
FIXED ANNUAL CHARGES = Rs. 49,30,000/-
Other Expenses = 1,00,000/-
VARIABLE COSTS = Rs. 65,05,750/-
TOTAL RUNNING COST = 1,14,35,750/-
TOTAL RUNNING COST per month = 9,52,980/-
RAW MATERIAL SPLIT
Flowers = Rs. 30 per kg * 60 kg per day * 365 days =
Rs.6,57,000/-
Bamboo = Rs. 0.1 per stick * 48000 sticks per day * 365 days =
Rs.17,52,000/-
Aromatic Compounds = Rs. 1000 per liter * 6 liters per day * 365=
Rs.21,90,000/-
Gum Tragacanth = Rs. 1000 per kg * 3 kg per day * 365 days =
Rs.10,95,000/-
Guar Gum = Rs. 250 per kg * 3 kg per day * 365 days = Rs.2,73,750/-
Packaging Materials = Rs. 1 per unit * 1200 packets per day * 365
days = Rs.4,38,000/-
Other Expenses = Rs. 1,00,000/-
Role Quantity Salary Total Salary
Production
10 12,000 1,20,000
Workers
Quality Control
1 15000 15,000
Total Salary per month =
Salary Split
Inspectors
Rs.3,65,000
Packaging
2 10,000 20,000
Workers
Technicians 2 18,000 36,000 Total Salary per year =
Administrative
3,65,000*12=
3 20,000 60,000
Staff Rs.43,80,000/-
Supervisors 2 25,000 50,000
Warehouse
2 12,000 24,000
Workers
Cleaning Staff 2 20,000 40,000
Cost of Production
1 packet = 40 sticks
No. of packets produced per day = 1200 packets
No. of units produced per month = 1200*30 = 36,000 packets
Selling price per packet = Rs. 30/-
Turnover in 1 month = 35*1200*30 = Rs. 12,60,000/-
CONTRIBUTION MARGIN = Turnover per month - Running Cost per month
= 12,60,000 - 9,52,980
l = 3,07,020/-
BREAK-EVEN POINT = Total Capital Cost / Contribution Margin
= 72,80,000 - 3,07,020
= 23.7 months
BREAK EVEN ANALYSIS
CPM CHART
A→B→E→F→G→H→J→K
The total duration along the critical path is 7
activities, with the longest duration being 365
days (1 year). These activities must be completed
on time without delay to ensure the project is
finished within the planned timeline.
LICENSE REGISTRATION
[Link] REGISTRATION
> All necessary GST registrations will be done within 30 days of
starting the company
[Link] TAX PERMIT
>Necessary for the sale of goods across different states.
3. TRADE LICENSE
>To confirm that the company’s activities are safe and legal.
[Link] Aadhaar Registration
>For recognition as a small businessunder government schemes.
RISK ASSESSMENT
Every project has some inherent risks and mitigating them is key to the success of the
project. Following are the risks identified by our project:
Production Risk: Raw materials such as bamboo sticks and essential oils must be
kept in proper storage conditions to prevent them from being damaged by
moisture or pests.
Market Risk: Despite having a good demand for agarbattis, if proper distribution
channels are not established, the company might struggle to reach its target
market, leading to potential losses.
Managerial Risk: Our management and staff have extensive experience in agarbatti
production and machine operation. They are also proficient in maintaining the
financial records and overall accounts of the project.
LEGAL ASPECT
COMPANY REGISTRATION:
The Purple Agarbatti manufacturing unit should be registered as a company, either
as a private limited company or a public limited company, depending on the
ownership structure and investment requirements.
PRODUCT SAFETY AND COMPLIANCE:
Product Safety Regulation: Ensure that our incense sticks comply with product
safety regulations. This may involve testing for any harmful chemicals or toxins that
could affect consumers' health.
Labeling Requirements: Follow labeling laws, which might include details on the
composition of the incense sticks, origin, and any safety certifications or eco-labels.
ENVIRONMENTAL AND SUSTAINABILITY CLAIMS:
Truth in Advertising: If we market our incense sticks as "natural" or
"eco-friendly," ensure these claims are accurate and supported by
evidence. Misleading claims could lead to legal issues.
Certifications: Consider obtaining certifications like USDA Organic, Fair
Trade, or similar to validate our sustainability claims and build consumer
trust.
CONCLUSION
- The Agarbatti making plant is successfully set up and is ideal for small-scale
businesses.
- The supply chain is more efficient, reducing material waste and needing fewer
workers, which helps with labor shortages.
- The machine used in production is faster and produces better quality than
manual labor.
- This machine saves time and money and represents a shift from traditional
methods to modern technology.
- The automation improves efficiency and helps grow the Agarbatti industry.
