The Current Scenario of Indian Incense Sticks Market and Their Impact on the Indian Economy

Abstract

The burning of incense sticks is a common practice around the world either as a part of their custom, for fragrance or as insect repellent. The market of incense sticks is rapidly increasing worldwide, due to their high demand in our everyday life. It's application in not only restricted to worship, instead it is used for meditation, yoga and aroma therapy. The global incense sticks market is currently dominated by United States of America (USA), Brazil, China and India. The low labor costs, availability of raw materials, has drawn the attention of the whole world towards India, and as a result, India is now one of the largest producer and exporter of incense sticks. Some of the Indian states are leading manufacturers of incense sticks. Indian incense sticks market contributes a major share in the economy of the country. The Indian incense sticks market is dominated by South-India especially, Tamil Nadu, Karnataka having the popular Mysore scents and some other world renowned brands. There is a high turnover of incense sticks market, which draws the government's attention towards them. The current review deals with the market potential of incense sticks in India, purchasing patterns, and current global competitors of Indian incense sticks.

Full text

Yadav et al. Ind. J. Pure App. Biosci. (2020) 8(3), 627-636 ISSN: 2582 – 2845
Copyright © May-June, 2020; IJPAB 627
Peer Reviewed, Refereed, Open Access Journal
The Current Scenario of Indian Incense Sticks Market and Their
Impact on the Indian Economy
Virendra Kumar Yadav1*, Pankaj Kumar2, Haresh Kalasariya3, Nisha Choudhary4, Bijendra
Singh5, G. Gnanamoorthy6, Nitin Gupta7, Samreen Heena Khan4 and Areeba Khayal8
1School of Life Sciences, Jaipur National University, Jaipur, Rajasthan, India
2School of Environment and Sustainable Development, 4School of Nanosciences, 5School of Chemical Sciences,
Central University of Gujarat, Gandhinagar, Gujarat, India
3Department of Microbiology, Sankalchand Patel University, Visnagar, Gujarat, India
6Department of Inorganic Chemistry, University of Madras, Guindy Campus, Chennai, T.N., India
7Society for Research and Initiatives for Sustainable Technologies and
Institutions (SRISTI) Laboratory, Gandhinagar, Gujarat, India
8Department of Chemistry, Industrial Chemistry section, Aligarh Muslim University, Aligarh, UP, India
*Corresponding Author E-mail: yadava94@gmail.com
Received: 10.05.2020 | Revised: 19.06.2020 | Accepted: 26.06.2020
Available online at www.ijpab.com
DOI: http://dx.doi.org/10.18782/2582-2845.8168
ISSN: 2582 – 2845
Ind. J. Pure App. Biosci. (2020) 8(3), 627-636
ABSTRACT
The burning of incense sticks is a common practice around the world either as a part of their
custom, for fragrance or as insect repellent. The market of incense sticks is rapidly increasing
worldwide, due to their high demand in our everyday life. It’s application in not only restricted to
worship, instead it is used for meditation, yoga and aroma therapy. The global incense sticks
market is currently dominated by United States of America (USA), Brazil, China and India. The
low labor costs, availability of raw materials, has drawn the attention of the whole world
towards India, and as a result, India is now one of the largest producer and exporter of incense
sticks. Some of the Indian states are leading manufacturers of incense sticks. Indian incense
sticks market contributes a major share in the economy of the country. The Indian incense sticks
market is dominated by South-India especially, Tamil Nadu, Karnataka having the popular
Mysore scents and some other world renowned brands. There is a high turnover of incense sticks
market, which draws the government’s attention towards them. The current review deals with the
market potential of incense sticks in India, purchasing patterns, and current global competitors
of Indian incense sticks.
Keywords: Incense sticks; Market players; Turnover; Agarbatti; Fragrances; Economy
Review Article
Cite this article: Yadav, V.K., Kumar, P., Kalasariya, H., Choudhary, N., Singh, B., Gnanamoorthy, G., Gu
pta, N., Khan, S.H., & Khayal, A. (2020). The Current Scenario of Indian Incense Sticks Market and Their I
mpact on the Indian Economy, Ind. J. Pure App. Biosci. 8(3), 627-636. doi: http://dx.doi.org/10.18782/2582
-2845.8168

Yadav et al. Ind. J. Pure App. Biosci. (2020) 8(3), 627-636 ISSN: 2582 – 2845
Copyright © May-June, 2020; IJPAB 628
INTRODUCTION
Incense sticks are long, cylindrical structure,
having a bamboo core coated with fragrant
materials, which, on burning, fills the
atmosphere with fresh air and aroma (Lin et
al., 2008). Incense sticks are used for many
religious purpose, in order to purify the bad air
and fills positive energy in the atmospheres
and eliminates negative energy from our
surroundings (Jetter et al., 2002). Incense
sticks holds a significant place in almost all the
religions and used during various ceremonies
and rituals in temples, churches, mosques,
monastery etc. Indian incense sticks market
has grown rapidly in the last decade and
currently it is catering in more than ninety
countries in the whole world. The lightning up
of incense sticks is traditional practice
followed from ancient times whose records are
available in India, Greece and Egypt. In,
India, the lightning up of incense sticks at all
the deity purposes is mentioned in Vedas. In
India, incense sticks is also called as
―Agarbatti‖ (Hazarika et al., 2018) which is
derived from a Sanskrit word ―Agaravarthi‖
where, ―Agar‖ means ‗aroma‘ and ―varthi‖
means ‗grief‘. Indian incense sticks size
generally varies from 8-12 cm in length, while,
their size may vary with countries and
religions (See et al., 2007). The burning of 2-3
incense sticks at a time is a common practice
in most of the Indian houses during the
worshipping God. The demand of incense
sticks in India drastically increases during the
major festive season, i.e. Diwali and Dussehra.
The incense sticks in India are prepared either
by conventional process at home or
alternatively, by using large machines in the
industries. In India, incense sticks
manufacturing is included as a sub-class of
cottage industries that engages mainly
women‘s of rural area (Hazarika et al., 2018).
Currently, the incense sticks manufacturing
falls under the ministry of commerce and
trade, Government of India (GOI). Though the
composition of incense sticks varies from one
industry to another but its major components
are charcoal powder, sticky powder such as
Jigat, Sal resin, Guggul, Nargis powder, raw
bamboo sticks, (Hazarika et al., 2018) water,
various variety of oils, aromatic essence,
flower essence, sandalwood oil, rose petals,
natural and chemical aromatic ingredients,
sawdust, and various color powder. Moreover,
based on the demand and fragrances regimes,
two types of incense sticks are commercially
manufactured in India, namely perfumed and
masala. In manufacturing perfumed incense,
powders of charcoal, Gigatu, white chips, etc.
are mixed with water to obtain a semi-solid
paste. This composition is taken on a wooden
plank and then applied to sticks by rolling with
hands or with an automatic incense stick
making machine. Production of incense sticks
comprises following steps in chronology:(1)
Bamboo stick production for the central core,
(2) Production and preparation of Jigat
powder, (3) Production of sawdust and
charcoal powder, (4) Preparation of incense
paste (masala) and its application on the
bamboo stick to produce the incense sticks, (5)
scenting or application of perfume, for a good
quality, and (6) packaging.
As the incense sticks demand is unending in
India, so it is sold by all means of trade, and
distributed to locals by retail mode. Due to the
retail mode, there is positive effect in selling
due to which the growth is to be around 6%
Compound Annual Growth Rate (CAGR) in
the coming years. The Indian incense sticks
and Dhoop (a form of incense product)
industry is the highly export-oriented industry,
which provides huge profit to the Indian
economy. The Indian export of incense sticks
and Dhoop is increasing every year, which
helps in balancing the trade deficit of India.
1. Incense sticks market at a glance in
India
In India, there is a high demand and utilization
of incense sticks from ancient times only due
to its religious values. The foremost utilization
purpose for incense sticks in India is for
religious purpose, especially in all the rituals
and ceremonies (Staub, et al., 2011). India is

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one of the largest manufacturer and exporter of
incense sticks leaving behind USA and Brazil.
The importance of incense sticks is rapidly
increasing due to which it has drawn the
attention of the Indian government. Further, as
per the study conducted by Ray and Biswas in
2014, reported that there are 10,000 Incense
sticks manufacturing units in India, including
miniaturized scale and small, along with
another 200 well-established units having
more than 50 marked Incense sticks, giving
business opportunities to about 8,00,000
family household workers (Ray
&Biswas,2014); (Hanumappa, 1996; NCAER,
1990). In India generally two-three incense
sticks are burned during worshipping while
African country like Nigeria lights up ten or
more than ten incense sticks at a time. The
founding of incense sticks industry is totally
based on the factors such as availability of the
raw materials for incense sticks like fragnance,
bamboo, and cheap labor.
2. Status of incense sticks market in India
Incense sticks is a fast moving consumer good
(FMCG) item with a good shelf-life and is one
of the rapidly growing industrial sectors of
India (Hazarika et al., 2018). The entire
business possesses are shared in between joint
operations of farmers, raw material providers,
manufacturers, local and international traders,
retailers and customers. India has a leadership
status in incense sticks production, fulfilling a
substantial proportion of world's necessities.
The growth of incense sticks manufacturing
and trade in India plays a substantial role in
attracting domestic and foreign markets. The
interest for incense sticks is increasing in local
as well as international markets which is
mainly due to the continuous improvement in
quality and increase in product types. Owing
to this, the administrations at national and state
levels exploit this industry for masking their
destitution projects. The purchasing limits of
individuals grabbed the eyes of makers, due to
which low-quality incense sticks brands have
attacked the business sector to suit the
distinctive social requirements. India exports
out substantial incense stick varieties that are
endowed with normal, colorful aromas.
Moreover, incense business is rapidly
increasing in India, due to less investment in
the form of machinery and labor. Besides, the
absence of technology entanglements and
simple accessibility of scents in the market
have prompted an uncontrolled development
of this industry. Currently, the incense sticks
business assumes a critical role in India's rural
economy, giving employment to a vast number
of the provincial rural population especially
women‘s (Balasubramanyam, 2013).
3. Market size of Indian incense sticks
The new planning for import exchange control
came into drive in the 1942, assisting the
incense sticks industry to start importing
chemicals, fragrances and other ingredients,
specifically as opposed to heading towards the
importer. Currently, the GOI (Government of
India), don‘t have exact data of incense sticks
production, utilization, import and export. So,
the analysis of exact size of Indian incense
sticks market is carried out through various
survey conducted by several agencies time to
time. According to the market survey
performed by the National Council of Applied
Economic Research (1990), National Group of
Connected Financial Exploration (1990), the
total incense stick production level in India in
1990 was 147 billion, esteemed at around
130645900 US$ (Ramya, Palanimuthu, &
Dayanandakumar, 2013). Further, as per the
study performed by Doddamani in 2001, it was
revealed that India produces around, 60,000
mts/annum of incense sticks, at an annual
developing rate of 10% (Doddamani, 2001).
As per an article published by franchisie.com,
in June 2018, Indian incense sticks provides
jobs to nearly 20 lakh people across whole
India which includes 80% women alone
(Hazarika et al., 2018). Further, it was stated
that Indian incense sticks market are growing
at a CAGR of 15%, it is expected to grow
exponentially reaching ₹12,000 crores in the
upcoming five years transforming this
particular segment even more. Similarly,

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another article published by economic times
June 2018, revealed that All India Agarbatti
Manufacturers Association (AIMA) incense
sticks has yearly turnover of about ₹2,000
crores with 20% growth rate on an annual
basis. Hazarika et al., 2018 reported that there
is utilization of around 3-4 million tonnes of
incense sticks alone in India and comprises of
70% utilization of the world. Currently, the
Indian incense sticks utilizes bamboos for
manufacturing incense sticks around 35,000
mts/annum. India's population growth has
given an expected market size of ₹1250-1500
crores (Jayaraj, Hazarika, Dutta, Biswas, &
Dutta, 2018). Kolkata has the largest market
for sale of incense sticks by volume in the
country at ₹150 crores or so, in the ₹1,000
crores national incense sticks market.
4. Progressive production, export and
future of Indian incense sticks market
The Indian incense sticks market is limited to
around 450 major industries. Besides this,
there are several small units also which
produces incense sticks but they have engaged
only with local market. India is a top exporter
of incense sticks which has noticed a 30%
increase in the export in the last five year
period. According to all India agarbatti
manufacturing association (AIAMA)
assumption, this could be because of some
favorable factors like, availability of raw
materials, labor and investments in India in
comparison to China and Taiwan among other
South East Asian nations. As of now, India is
exporting incense sticks to the USA, United
Kingdom (UK), United Arab Emirates (UAE),
Belgium, Brazil and Argentina, amongst a few
different nations. In India, the incense stick
manufacturers extend from Tribal Welfare
Mission under the Khadi and Village
Industries Commission (KVIC) to Auroville in
Puducherry and from small factories to FMCG
giant ITC. A gradual increase in the
production and export of incense sticks in
various financial year concluded a subtle
increase from 1989-2020. In 1989-90, the total
Incense sticks production was assessed at 147
billion and total domestic sales were estimated
as ₹7.1 billion (approx. US $ 198 million)
while exports represented a surplus extent of
₹1.5 billion (US$ 42 million). Exports have
been witnessing consistent rise in recent years,
with 1993-94 esteem recorded at ₹4 billion
(US $ 112 million) (Hanumappa, 1996,
NCAER, 1990). As per Rao et al., in 2009,
nearly 208 billion, incense sticks were
produced which is estimated to grow at nearly
20% every year (Rao et al., 2009). The India
Incense sticks and Dhoop market size was
more than ₹3000 crores in 2011-12, with high
sales in the rural regions. The Incense sticks
business has yielded ₹2000-crores per annum,
quite significantly originating from cottage
level on rural India (Balasubamanyam, 2013).
According to Ministry of Commerce,
Government of India (GOI) data, India have
exported incense sticks worth $498.02 million
between the 2012 and 2016 monetary years.
Of note, yearly exports noticed 11.57%
growth, rising from $89.64 million (FY2012)
to $100.02 million (FY2016). In FY2016,
USA were the largest importer of incense
sticks from India with $11.3 million import
estimation, trailed by UAE ($6.23 million) and
Nigeria ($5.85 million) (Kumar, 2017). While
in 2016-17, India has figured out the export of
incense sticks worth over ₹400 crores, just
about 10% of the worldwide incense market.
Hazarika et al. (2018) reported that India's
population growth has given an expected
market size of ₹1250-1500 crores to the Indian
incense sticks (Jayaraj, Hazarika, Dutta,
Biswas, & Dutta, 2018). Further, according to
KVIC, a reduction of more than 14% in the
sales of incense sticks was noticed from ₹3.69
crores in 2017-18 to ₹3.16 crores in 2018-19.
This could be due to the increase in the Goods
and Sales Tax (GST) on the incense sticks and
their products upto 18%. Further, though GST
was reduced from 14% to 5%, but no any
major difference was observed as the total
sales have touched only ₹1.94 crores so far in
2019-20. According to the article published in
prnewswire.com in June 2018, it is found that

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the incense sticks market has observed
continuous increase in the growth rate since
last five years and is forecasted to reach
market size by volume of more than 34000
sticks of incense sticks and Dhoop in 2022-23
(Prnewswire 2020).
5. Zone wise incense stick production in
India
India's incense sticks industry is mostly as of
cottage industry and is majorly labor intensive
which employs mainly women of rural area.
Though the incense sticks industries in India
are widespread in the whole India, but as per
the production it can be classified into four
zones:- 1) South India, 2) West India, 3) North
India and 4) East India. The south-Indian
industries are most dominating industries
which includes, Karnataka, Andhra Pradesh,
Kerala, Telangana, and Tamil Nadu. Out of all
these South-Indian states, Karnataka is
prevailing with industries like Mysore scents,
Moksh agrbatti, and cycle agarbatti. The
percentile residential offer of incense or
incense sticks in 2009-2010 in South-India is
approximately 35% of domestic sales that is
around ₹7.1 billion (approx. US$ 198 million),
with West-India representing 30%, North-
India representing 18% and East-India
contributing to 17%. Significantly, around
66% of local incense sticks utilization occurs
within the country and out of which incense
stick consumption being noticed in rural areas
(61.23%).
6. State wise production and distribution
of incense sticks industry in India
The cutting edge period of incense sticks
manufacturing in Southern India first began in
Thanjavur disytrict of Tamil Nadu, from
where it gradually extended to different parts
of neighboring states. The incense sticks
industry presently reigns in Karnataka, Andhra
Pradesh, Kerala, Odisha, Tamil Nadu, Gujarat,
Dadra and Nagar Haveli, Bihar, Tripura and
Assam. Karnataka occupies the top position
amongst the competing states, with Mysore
and Bangalore (substantially, urban areas)
amongst the major manufacturers (Madhur
Bakhle, Shivani Gite, Ameya Poyarekar, Ayaz
Siddiqui, & Patil, 2016); (Mark Holmström,
2007).
6.1 Gujarat & Odisha
Gujarat Agarbatti Manufacturers & Dealers
Association (GAMDA) is a stage for incense
stick manufacturers, merchants and all other
people who specifically or indirectly, manage
incense sticks business. The GAMDA is
persistently trying to introduce quality items in
the worldwide market with just about 200
processing plants being identified keeping
incense sticks are running in Ahemdabad.
Strikingly, half of these ventures specifically
manufacture incense sticks, either physically
or through machine utilization and a portion of
enterprises being engaged in value-added
work. For instance, scenting, packaging and
marking activities, in wake of purchasing,
moved incense sticks away from the incense
sticks producers (Bureau, 2019). Gujarat state
has more than 560 registered incense sticks
suppliers, of which, majority are confined in
Ahemdabad (Mahadevia et al., 2014).
Aurobindo Ashram and Gayatrin
Ashram of Odisha are associated with
manufacturing of fragrant incense sticks under
the brand names, Parimal Agarbatti,
Berhampur, Suravi, Susree, Indica. The raw
materials are used to bring from Cuttack,
Bhubaneswar and Calcutta. ORMAS, a
government of Odisha agency working for
livelihood and development, has developed a
tie-up with Incense sticks division of ITC
Limited.
6.2 Maharashtra
The state of Maharashtra is currently a hub of
incense sticks industries, such as in Pune,
wherein more than 76 incense sticks
manufacturers reside with their production
(Hazarika et al., 2018). Gadchiroli Agarbatti
Project (GAP) of the forest divisions of
Gadchiroli district, Maharashtra has 21 incense
sticks production centers (483 machines),
spread over the whole area. With an objective
of 44 distinct centers, work is in steadily
advancing mode towards accomplishing itself

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by the mid of 2014. These centers right now
provide an employment to approximately 500
people, with 95% being ladies. As of now, 220
tonnes of raw incense sticks produce are sold
to merchants and producers based outside
Nagpur. The Wadsa forest Division of
Gadchiroli district with its 5 units i.e. Porla,
Sonsari, Gothangaon, Wadegaon and
Kurkheda. Agarbatti production (130
machines) was assessed at nearly 123.5 tonnes,
as per 2014 estimates.
7.4 Bihar and West Bengal
There are around 42 registered incense sticks
manufacturers in Bihar excluding the
unorganized and rural sectors. As many as
50,000 women are said to be associated with
incense sticks rolling activity in the Gaya
region, Bihar (Hazarika et al., 2018).
After independence, incense sticks
manufacturing industry first started in the
Southern West Bengal after at Fultala of
Baruipur district-24 Parganas. Thereafter,
several large and small incense sticks based
industries came into existence in Piyali Town,
Fultala, spreading to Canning Block 1 and 2
and different parts of Baruipur, that provided
job to thousands of families. At present,
incense sticks industry assumes an
indispensable position in the efficient
advancement of this region and is swiftly
emerging as the vocation of the general
population in Fultala and also a larger part of
Baruipur and Canning. As per the study
carried out by Barua, 2011, it was mentioned
that Baruipur Agarbatti Manufacturers‘
Welfare Association (BAMWA) West Bengal
has 112 assembling units with as many as
56000 representatives and ₹ (40-45) crores
annual turnover in the year 2011 (Barua,
2011).
7.5 Andhra Pradesh and Tamil Nadu
According to a report of 2006, there were
about 150 units of incense sticks exist in
Andhra Pradesh whose marketing is quite
significant locally apart from ITC, Chennai.
The production limit was 10 tons on monthly
basis, which would be progressed to 100 tons
for every month bymid-2006. This activity
receives an income of ₹18,000 per ton as
against ₹ 1,500 per ton, being harvested from
pulp and paper mills.
7.6 Karnataka
The Karnataka region, generally known as the
Capital of ―Agarbatti‖ is the main Indian
Incense sticks producer, with Mysore and
Bangalore being the primary manufacturing
centers (GOI, 2019). As on today, around 1000
units prevail through the Province of
Karnataka out of which around 67 that were
established in Bangalore (Reddy 2013). It is
considered that now just (30-40) % of the
Indian production comes from Karnataka, with
the extent being pegged at 95% during 1960‘s.
The Mysore district is perceived as a pioneer
in the Incense sticks manufacturing and this is
one of the principle group exercises prevailing
in the city (NSDC, 2016). Incense sticks
manufactured in India, in particular from
Mysore has a worldwide recognition and has a
significantly better quality compared to other
contending countries (Doddamani, 2001).
7. Major Indian incense sticks industries
and their brands
The Indian incense sticks market is dominated
by few world renowned companies which
produces incense sticks of different fragrances
and types. Moreover, these industries are also
involved in manufacturing of other incense
products dhoop, cones etc. in addition to
incense sticks. The industries which have a
major share are given below:-
I. N. Ranga Rao & Sons Private
Limited- Cycle, Heritage, Lia, Good
fortunes, Speciality, Vasu, Rhythm,
Natures Gift, Durgeshwari, Om
Shanti, Pushkarini, Lia comet
II. Moksh Agarbatti Co – Moksh
III. ITC Limited – Mangaldeep
IV. Mysore Deep Perfumery House
(MDPH) - Zed black
V. Shree Kalpana Perfumery Works
Private Limited – Kalpana
VI. Haridarshan Sevashram Private
Limited - Hari darshan

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VII. B. V. Aswathiah & Bros – Nandi -
Hem Corporation Private Limited –
Hem
VIII. Patanjali Ayurved Limited - Astha,
Madhuram
“Moksh Agarbatti” is a Bangalore-based
enterprise has brought in ‗better packaging and
modern design‘ concepts leading to raised
demands which raised the export market.'
Another Karnataka based incense sticks
industry is Cycle, owned by ITC limited. It is
mainly based in Mysore area which has been
around for over five decades, is clearly the
market leader. Being the largest incense
industry, the export stats of this brand account
for 10% of the company‘s production. Cycle
brand produces pure Incense sticks, the leader
brand of Mysore-based NR Group is one of the
pioneers of Indian Incense sticks industry
(worth ₹ 1,500 crores) with a 15% share in the
organized market, trailed by ITC exports to as
many as 40 nations. The brand is a source of
handmade Incense sticks, prepared extensively
by female workers from remote parts of
Karnataka, Andhra Pradesh and Odisha. These
units supply fragrances in the homes of Brazil,
Chile, the USA, Japan, Africa and Chile.
Currently it is exporting incense sticks to more
than 60 countries in the whole world.
ITC‘s marketing muscle, Mangaldeep
is available across the length and breadth of
the country. It began promoting Incense sticks
in 2005 by overhauling the make of Incense
sticks manufactured by villagers and small
scale producers. The industry currently sources
several of its necessities through tie-ups with
Sankranti, Ananth and Jyanti domestic
products (all from Bangalore), Cottage
industry of Aurobindu Ashram (Pondicherry),
Prayer Agarbatti (New Delhi), Swastik
Industries (Chandigarh), Jayanti Products
(Agartala) and KVIC (mainly Coimbatore). At
present, ITC‘s Mangaldeep holds 10% share
and hopes to garner around 18% in the next
couple of years, although present production
stands at 30% from the last three years. ITC is
the second biggest sector dominated by chaotic
player currently engaged in establishing
Perfume and Packaging center for Mangaldeep
brand with a share of ₹3,000 crores which is
right around 5%. The organization has
connected with 20 small units engaged in
Incense sticks finishing, which together supply
around 700 million-incense sticks on monthly
basis. In an offer to intensify the yield, the
organization purchases raw Incense sticks
from self-help groups of six states: Karnataka,
Tamil Nadu, Tripura, Assam, Odisha, Andhra
Pradesh, Chandigarh, Delhi and Bihar.
Mangaldeep has signed agreements with state
governments across the nation, including those
of Odisha, Assam and Tripura, in light of the
incense sticks business' capability to provide
sustainable livelihoods for rural India.
Mangaldeep, in its entire value chain, employs
20,000 people, majority of which are rural
women. ITC has now entered the industry as a
national player, purchasing the handmade
products from sellers. It has five lakh retail
outlets in the country, which have doubled
their production.
Another, Mysore based incense sticks
industry is Mysore Scents. Mysore‘s fine
―Agarbatti‖ was established in 1958 in
association with a local partner. Mysore Scents
now produces over one billion incense sticks
every year that are exported to over 40
countries and sold in India under the Aroma
India brand. The products of this enterprise are
available at 13,000 outlets in the US and over
1,500 outlets each in Europe and Japan. Its
turnover was ₹31 crores in FY13, improving
by 10% from that of FY12. The Kandla
factory has a capacity to manufacture one
billion sticks a year and employs over 200
people. The target is swiftly marching ahead,
with nearly 40% increase in capacity over the
next five years and at least 15% increase in
annual turnover.
Another renowned incense sticks
industry is Hindustan Lever which have
endeavored to enter the industry to use their
expansive circulation network through the
machine-made incense stick route, which
appealed on aesthetics despite not being
exceptionally fragrant.

Yadav et al. Ind. J. Pure App. Biosci. (2020) 8(3), 627-636 ISSN: 2582 – 2845
Copyright © May-June, 2020; IJPAB 634
Fig. 1: Major Indian enterprises engaged in incense-stick trade
8. Purchasing pattern of incense sticks in
India
The demand for incense sticks sharply
increases during the festive season like
Dussehra and Diwali days, both in domestic
and international markets. The market for
incense sticks is tremendous, whereby interest
for these commodities is high even in the far-
flung rural areas. The incense industry is
driven by factors other than commerce such as
superstition, tradition and religion. In India,
shoppers are profoundly focused among the
rural pockets (61%) (INBAR-1994; Jenner and
Reza, 2008). The low-salary group buys about
46% of the Incense sticks produce while the
higher income group customers purchase the
rest. However, categorizing purchases into five
income classes deciphers an inverse
relationship between income and purchase
extent. Presence of negative income and price
flexibility may possibly be the contributory
factors to this scenario. The variables affecting
purchasing choices include quality, fragrance,
cost and brand name preference.
9. Close competitors of India incense sticks
in the global market
Incense sticks textures and usage forms have
changed from merely being religious to several
other needs and purposes. They offer
psychological benefits by soothing the mind
and enhancing meditation experience. Initially,
India was the key producer and exporter of
incense and incense sticks, which has recently
been facing a stiff competition from countries
like China, Japan, Thailand and their
perspective neighbors. Local market is a few
factors larger than the export one. Incense
sticks industry is one of the labor-intensive
and cottage type traditional industries of India.
The market, ruled by Indian incense industries,
and faces intense rivalry from Chinese and
Thai makers who offer more options and
varieties in their packaging and distribution.
Apart from the US and Europe as extensive
markets for Incense sticks exports, the South
American market has recently been emerging
as a key attraction to promote incense sticks
trade in a significant manner. Chinese and
Thai incense stick exporters, have nonetheless,
begun introducing packaging and design
advancements to compete with the standards
of Western markets, that has pushed Indian
Incense sticks producers to go with the same
pattern. Incense from China and Thailand have
begun filling the ₹4,000-crore worldwide
incense stick market, shaking the customary
Indian fortress over the business. The turnover
of Indian Incense sticks manufactures, is
₹1,800 crores turnover, whereas the
advertisement includes worth around ₹5,000
crores and the export has contributed only
around ₹457 crores. The turnover of Indian
incense sticks market is increasing annually
10% on annual basis.
Incense
players
ITC
(Mangalde
ep)
Cycle
Moksh
Mysore
Scents

Yadav et al. Ind. J. Pure App. Biosci. (2020) 8(3), 627-636 ISSN: 2582 – 2845
Copyright © May-June, 2020; IJPAB 635
CONCLUSION
The Indian incense sticks market significantly
contributes to the economic development of
rural India. Major Indian states that
contributing to the market value on incense
industry are Tamil Nadu, Maharashtra,
Karnataka, Uttar Pradesh and West Bengal.
Incense industry is growing at rapid rate not
just in India but also in Europe counties. Due
to the cheap labor cost, and availability of raw
materials India is now one of the largest
producer and consumer of incense sticks.
Every year incense sticks exports are
generating a large revenue in the Indian
economy. In the last few years, world has
shown interest in the major Indian incense
sticks, consequently has provided source of
livelihood to millions of people especially
women in rural areas. The major share of
Indian incense sticks market is in hand of only
a few renowned brands i.e. ITC, Cycle, Moksh
and Mysore Scents. The demand of Indian
incense sticks also increased in the last few
years due to the low cost and variations and by
the year 2019, India has emerge as a leading
exporter which supplies to more than 95
countries. Due, to the more demand of Indian
incense sticks, few countries has emerged as a
major competitors to Indian market. There is
lack of reforms in the sector of incense stick
manufacturing which needs the attention of
researchers to develop novel, natural product
based formulations of quality incense sticks.
Indian government needs to take steps and
make policies to the dissolve the monopoly of
incense sticks industry. These steps may
enhance the market potential of the incense
products.
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