Starting a Dhoop Sticks Making Business in India for Huge Profits
The industry with almost no entry obstacles, offering an extensive employment opportunity to the rural people, requiring a very nominal investment still holds a market size as large as ₹3000+ crores in India.
This is the Indian Incense and Dhoop Stick market we are speaking about. A Dhoop Stick/incense stick is a stick when burnt releases a fragrance and mild smoke which is likely to air the house with a revitalizing odor.
India is the world’s largest incense and Dhoop Stick producer and also popular for it because of the legitimacy it is produced with which has led India to export Dhoop Sticks worth $498.02 million in FY 2011-2012.
And factually, that was long ago so to imagine the income this industry brings now is immense. Offering you more than just reasons to jump into this industry
A step-by-step guide to start a Dhoop Sticks Making Business in India
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Market potential for Dhoop Sticks Making Business
Because of India’s ability to produce Dhoop Sticks using labor-intensive methods, competitive rates in different shapes and scents ranging from lavender, sandalwood to rose and lilies, etc.
The market potential for Dhoop Sticks is a great opportunity as it brings in not only the Indian consumer demand but also caters to larger global demand since the production in countries like the USA is only limited confined to unscented or raw Dhoop Sticks.
Uses of Dhoop Sticks
Though the uses of Dhoop Sticks are narrow they are used in every Indian household:
- It is used as an ingredient for ceremonial purposes in religious or holy places
- It is used for aromatherapy in spas, massage centers, etc
- It is used in Ayurvedic and meditation centers, retreat centers as a part of healing procedures
- It is used in many therapy clinics to ensure a comfortable and open space which comes from its fragrance
- It is used as an add-on to air fresheners, perfumes, or scented candles
Area required to start Dhoop Stick making business
The area needed to begin a Dhoop Sticks making business is around 1000 sq. ft.
Raw materials for
The raw materials needed for making a Dhoop Sticks are as follows:
- Coal powder
- Gum powder
- Bamboo sticks
- Jikit powder
Machinery required to start Dhoop Stick making business
The machines needed for a Dhoop Stick making business are:
- Dyer machine
- Formula mixing machine
- Bamboo Sticks extracting machine
- Packaging machine
- Dhoop sticks making machine
Manpower requirements to start Dhoop Stick making business
The manpower required for a Dhoop Stick making business is
- 1 production manager
- 1 technician
- 2 skilled labors
- 5 unskilled labors
Moreover, a thorough guide and training to them must be given in terms of equipment handling, safety and safety measures, machine using procedures, etc.
Business model and growth of Dhoop Sticks making business
The business model for the Dhoop Sticks making business can be illustrated with these 4 variants:
Value proposition: The unique selling point and the value which the dhoop making business would provide you with us as follows as mentioned below:
- The demand for Dhoop Sticks is eternal as people in India have deep-rooted religious sentimentalities and Dhoop Sticks is a mode of maintaining it and is inexpensive
- The production of Dhoop Sticks needs a very negligible investment and also carries the global demand
- Target consumers: The target customers for your shop Dhoop Sticks making business could be:
- Ayurvedic and retreat centers
- Resorts and hotel industry
- Religious/holy places
- Therapy clinics
Competitor review: Dhoop Stick is a product out of which consumers seek pureness and good fragrance so any brand that offers that will do. But there are definite companies that through their long run, legacy and experience are businesses attain a loyal customer base.
So the major brands in this business are: Cycle pure, Patanjali, Zed black, Moksh
License, permissions, and registration required to start Dhoop Stick making business
The licenses needed to set up a Dhoop Stick making business are:
- Factory license
- NOC by the state pollution control board
- Udyog Aadhaar under MSME registration
- SSI registration
- GST registration
- PAN, Aadhar card, and bank details
Investment required to start Dhoop Stick making business
Investment needed to set up a dhoop stick making business could be between Rs. 2,00,000 to Rs.3,00,000
Profits made in Dhoop Stick making business
The profits gained through Dhoop Stick making business would be Rs. 60,000 monthly.
Target consumers for your Dhoop Stick business
The consumers for the dhoop stick/incense sticks utilize for different purposes so accordingly the target market for the dhoop stick market is mentioned below:
- Religious places: Many religious and holy places make use of dhoop sticks which are dominantly having sandalwood fragrance as a part of their respective rites.
- Meditational and retreat centers: Your dhoop stick making business can also cater its product to the Ayurvedic and meditational places that make use of them as a part of a healing process for patients.
- Spas and massage centers: Dhoop stick manufactured by you is also be is employed by spas and massage centers as a part of aromatherapy and to refresh the mood.
- Among elders and old aged population: The dhoop sticks made is also useful for the elders and old aged people who have a busy and are prone to a nerve-wracking life. Dhoop sticks are used for curing headaches, comforting the mood, etc.
- Resorts/hotels: They use Dhoop Sticks as an add-on to the room fresheners and scents to impart a pure, natural, and authentic Indian set up.
Marketing strategies for promoting your business
The marketing strategy for Dhoop Stick comprises focus on developing: Advertisements endorse the quality, smell, and the period for which a dhoop stick lasts in-household set up. It can come up with sales promotional measures such as buy one get one free offer, etc. at affordable rates.
Growth of your business
The Dhoop Sticks industry’s growth has been increasing similar to its fragrance:
- The Indian dhoop stick market has a CAGR above 6% per year.
- India has been distributing dhoop sticks to about 160 countries out of which the USA holds for $11.3 million imports, Nigeria at $5.85 million, and UAE at $6.23 million
- The demand for Dhoop Sticks has been increasing since FY 2009 contributing to its growth in terms of fragrances such as chocolate, apple, and also in terms of shapes: Coils and sticks, etc.
Profit margin in Dhoop Stick making business
By beginning a Dhoop Stick making business one can gain a profit margin is around 10%.
In case if you miss this: Real Ways To Make Money From Home.
Suggestions for making your business a successful one
We can add some of the interesting features of those Dhoop Stick business that will aid you to decide whether or not to start a Dhoop Stick making business:
- Firstly, Dhoop Stick are mass-produced using bamboo sticks and certain fragrance augmenting elements so it has nominal investment and reasonable earnings
- Secondly, the consumer base for a Dhoop Stick is everlasting and growing because of the religious sentimentalities held by the Indian people.
Finally, because of its affordability, diversity, and authenticity, the demand for Dhoop Stick has been internationally made.