Agarbatti (Incense Stick) Making Business: Machine, Raw Material, Cost and Profit (2026)

Last updated: October 2026

Agarbatti is used every day in homes, temples, shops and offices, with big spikes during festivals. You can enter at two levels: making raw (unscented) battis to supply existing brands, or building your own perfumed brand. Machines are affordable, and the business suits home units and women's groups.

Quick Facts Investment₹3–8 lakh (2–3 automatic machines + perfuming + packing) Space300–800 sq ft + drying area ModelsRaw batti job work, or own branded agarbatti Typical marginRaw batti: low but steady; own brand: 20–30% Best forHome units, women's groups, rural entrepreneurs

Two Business Models Raw Batti (Job Work)Own Perfumed Brand What you doMake unscented sticks, sell to brands or dealersMake, perfume, pack and sell under your name InvestmentLowerHigher (perfumes, packaging, marketing) Selling effortLow (bulk buyers)High (distribution, branding) MarginLow per kgMuch better

Tip: Many start with raw battis for steady cash, then launch their own brand gradually.

Raw Materials

• Bamboo sticks (Indian sticks are now widely available since import duty was raised to support local makers)
• Charcoal powder, jigat (binder) powder, wood powder for the masala dough
• Perfume compounds and DEP (solvent) for dipping
• Packaging: boxes, pouches, zipper packs

Machines

• Automatic agarbatti making machine (high stick output per minute)
• Powder mixer / dough kneader
• Drying racks or a dryer
• Perfume dipping trays, drying stand, packing table, sealer

Process

1. Mix charcoal, jigat and wood powder with water into a dough.
2. Feed the dough and sticks into the machine to make raw battis.
3. Dry the raw battis completely.
4. Dip them in the perfume–DEP mix (for scented agarbatti).
5. Dry again in the shade, then pack.

Licences

• Udyam and GST registration
• Legal Metrology registration for packed products
• Trademark for your brand
• Local trade licence; Pollution Control Board consent if applicable

Simple Profit Example (Monthly, Own Brand) Sales: 1,500 kg at ₹250/kg (to distributors)₹3,75,000 Raw batti (₹70/kg) + perfume and DEP (₹60/kg) + packaging (₹40/kg)– ₹2,55,000 Labour, power, rent, transport– ₹45,000 Profit before tax and EMI₹75,000

Indicative only. Premium fragrances, dhoop cones and festival gift packs earn higher margins.

How to Sell

• Pooja samagri shops, kirana shops and general stores
• Temples and religious trusts (bulk)
• Distributors in nearby districts
• Online: Amazon, Flipkart, your own website or Instagram
• Festival and gift packs for Diwali, Navratri and Ganesh Chaturthi

Government Support

KVIC has run programmes such as the Khadi Agarbatti Atmanirbhar Mission to support artisans with machines and work. New units can also use PMEGP (implemented through KVIC and DICs) or a Mudra loan. See Government Schemes for MSMEs.

Common Mistakes

• Poor drying, which causes fungus and battis that won't burn properly
• Cheap perfumes. Fragrance is why customers come back.
• Launching a brand without a distribution plan

Common Questions Can I start agarbatti making at home?

Yes. A machine or two and a clean drying space at home are enough to start raw batti production.

Where do I buy perfumes?

From fragrance compound suppliers. Ask for small samples and test burn quality before buying in bulk.

Is there a buy-back arrangement for raw battis?

Some brands and dealers buy raw battis regularly. Verify any buy-back offer carefully and avoid paying upfront "registration fees" to unknown companies.

Disclaimer: Costs, prices and scheme details are indicative. Verify scheme availability with KVIC or your District Industries Centre.