PROJECT PROFILE - Agarbathi Sticks
INTRODUCTION
The burning of incense in religious and social functions has been practised in India since early times. Dhup an aromatic powder or
paste is burnt in Indian homes as a fragrant fumigant and is reputed to possess insecticidal and antiseptic properties. Agarbati also
known, as Udubattis similar to joss sticks are a development of Dhup.
Agarbattis are obtainable in different colors and with different perfumes. The burning time ;of an agarbatti varies from 15 minutes to 3
hours according to quality and size. Agarbatti is also obtainable in other forms such as dashang (stickly paste or powder) deep (cones
and Dhup, tablets etc.).
About 75% of the agarbattis manufactured are of cheap quality containing only charcoal powder or low quality sandal wood powder
with a mixture of 50% of wood gun powder. Cheap perfumes are used to give them a top note. In superior varieties, essential oils,
purified resins, natural fixatives like amber, musk and civet are used along with synthetic aromatics. Absolutes are use in the costlier
types.
MARKET POTENTIAL
Agarbattis are used by all communities in India, Sri Lanka, Burma and by Indians residing abroad. As on today about 90 foreign
countries are using our agarbattis.
Agarbatti Industry is one of the labour intensive cottage type of traditional industries in India and Karnataka State leads in this
industry, the main centers of manufacture being Mysore and Bangalore. As on today, about 1000 units exist through the State of
Karnataka. Moreover, it is an export-oriented industry also. In fact, this is one the items considered for boosting exports. Owing to the low
level of technology involved in this industry, this can be taken to rural areas without much difficulty, thus implementing the rural
industrialisation policy of Government of India to a greater extent.
PRODUCTION TARGETS (Per annum on single shift basis)
Quantity - 27,00,000 packets
Value - Rs. 59,40,000
BASIS AND PRESUMPTIONS
1.
The estimates are drawn for a production capacity generally considered techno-economically viable for model
type of manufacturing activity.
2.
The information supplied is based on a standard type of manufacturing activity utilising conventional
techniques of production at optimum levels of performance.
3.
The costs in respect of Land & Building, machinery and equipment raw materials and the selling prices of the
finished products etc. are those generally obtaining at the time of the preparation of the project profiles and may vary
depending upon various factors.
4.
Whereas some names of manufacturers/suppliers of machinery and equipment, raw materials etc. are
indicated at the end of the profile these are by no means exclusive or exhaustive.
PRODUCTION DETAILS AND PROCESS OF MANUFACTURE
All the ingredients in powder form are mixed well in the proper proportion with water to a semi solid paste. This paste
is applied to bamboo sticks and rolled on wooden-planks with hands uniformly. The raw sticks re them dried and packed in
suitable bundles. For manufacture of perfumed agarbattis the concentrated perfume is diluted first with white oil or diethyl
phthalate (Generally 1:3) and raw agarbattis are dipped suitably in dipping trays. The perfumed batties are packed
immediately in butter paper bags or polypropylene bags and finally in printed cartons.
A typical composition for masala batties is as under:
White chips - 40% }
Gigatu - 20% } The composition can be modified
Charcoal - 20% } according to the requirements
Aromatic chemical Essential - 20% }
Oil and other ingredients }
QUALITY CONTROL & STANDARD
There is no ISI Standard for manufacture of Agarbatti at present. However, they are manufactured as per customers
requirements.
LAND AND BUILDING
Covered area if 250 [Link] with electricity and water arrangements - Rs.1,500 PM
MACHINERY AND EQUIPMENTS
[Link]. Description
1. Wooden planks for rolling size 2
x 1 x 1
2. Weighing balance 10 kg. cap
3. Hand sieves 100 mesh
4. Wooden Racks 8 x 6 x 2
5. Plastic trays 20 lit. capacity
6. Aluminium trays for dipping
7. Delivery van cycle
8. Plastic buckets, mugs, misc.
No.
50 No.
Values
3,000/-
2 No.
6 No.
9 No.
20 No.
2 No.
1,600/250/6,750/600/1,600/8,000/4,000/-
equipments
Office furniture, equipments fire
extinguisher etc.
Freights, Installation,
electrification
Total
9.
10.
10,000/3,000/38,800/-
STAFF AND LABOUR (PER MONTH)
[Link].
1.
2.
3.
4.
5.
6.
7.
Designation
Production Manager
Storekeeper
Clerk-cum-typist
Sales Representative
Delivery Van Boy
Watchmen
Semi-skilled workers (on contract basis @
Rs. 60 per day)
Total
Fringe benefits @ 15% approx.
Grand Total
Nos.
1 No.
1 No.
1 No.
2 No.
2 No.
2 No.
50 No.
Rs.
4,000/2,000/2,000/3,600/3,000/3,000/20,000/37,600/5,650/43,250/-
RAW MATERIALS (PER MONTH)
SI. No.
Name
1. Charcoal Powder
2. Gigatu
3. White chips powder
4. Sandalwood Powder
5. Bamboo sticks
6. Kuppam Dust
7. Perfumes
8. Diluents like DEP etc.
9. Paper cartons
10. Wrapping paper
11. Inner Paper bags
Total
Qty.
1320
1100
150
225
1320
450
350
1100
250000
250000
250000
Values (Rs.)
5,280/9,900/2,250/6,300/13,200/1,320/1,22,500/44,000/1,25,000/37,500/22,500/3,90,300/-
UTILITIES (PER MONTH)
Rs. 800 Electricity, water etc.
OTHER EXPENSES (PER MONTH)
Rent
Stationery, postage, telephone
Advertisement & Publicity
Travelling Expenses
Miscellaneous
Repairs and maintenance
Total
2,500/1,500/1,500/1,000/1,000/5,00/8,000/-
WORKING CAPITAL (FOR ONE MONTH)
1.
2.
3.
4.
Staff and Labour
Raw Materials
Utilities
Other expenses
Total
For Three months
43,250
3,90,300
800
8,000
4,42,350
13,27,050
Say
13,27,050
TOTAL CAPITAL INVESTMENT
Machinery and equipment
Working Capital
38,800
13,27,000
13,65,800
COST OF PRODUCTION (PER ANNUM)
Recurring expenditure per annum
Depreciation on machinery and equipment @ 20% per
annum
Interest on total investment @ 15% per annum
53,08,200
4,250
2,04,900
55,17,350
TOTAL SALE (PER ANNUM)
Receipts by sale of 27,00,000 packets of agarbattis @
Rs.2.20
62,10,000
PROFITABILITY (PER ANNUM)
Rs. 62,10,000 -- Rs. 59,17,3500 = 4,22,650
Net Profit per year 4,22,650
Net Profit Ratio = Net profit x 100 / Turn over
= 4,22,650x 100 / 62,10,000 = 7.11%
Rate of Return
= Net profit x 100 / Total Investment = 4,22,650x 100 / 13,65,800 = 30.94%
Break Even Point = Fixed Cost x 100 / Fixed Cost + Profit
FIXED COST
Depreciation of Machinery
4,250/Interest on total investment
1,63,900/Rent
30,000/40% on salary and wages
2,07,600/40% of Other expenditure
38,400/4,44,150/BREAK EVEN POINT = 4,44,150 x 100 / 8,66,800 = 51.24%
ADDRESSES OF RAW MATERIALS SUPPLIERS:
1.
M/s Ravi Flour Mills & Industries, 339 Bapujinagar, Mysore Road, Bangalore 26
2.
M/s H.P. Nanjudiah Setty & Sons, 62, Gundopath Street, Bangalore 53
3.
M/s Ramachandra Pulverisers & Industries, IV Main Road, New Tharagpupet, Bagalore-2
4.
M/s Mahalakshmi Flour Mills, T-64 Gundopanth St., Bangalore 53
5.
M/s Shakti Flour Mills, Swantantra Building, R.K. Puram, Bangalore 9
6.
Shri Venkateswara & Co., No.11, Thulasi Thota Road, Bangalore 53
7.
Lakshmi Grinding Mills, Mysore Road, Bangalore 26
8.
Mastan Khan & Sons, 14 Pension on Mohalla, I Cross Mysore Road, Bangalore 18
9.
G. Anand Rama Setty & Sons, 242 Sulthanpet, Bangalore.
PERFUMES :
1.
Pushpa Perfumery Products, 138 Akkipet Main Road, Bangalore 2
2.
Lala Banara Dass, Khattri, Kannauj (UP)
3.
Saibaba Sugandh Bhandar, 53, Sultapet, Bangalore 53
4.
Goodwill Agencies, Keshav Nivas, 24 I Main Road, P.B. No. 9715 Gandhinagar, Bangalore 560 009
5.
Naresh Trading Co., 36 K.V. Temple Street, Bangalore 53
6.
The Easter Essence Emporium, 204, Nagarthpet, Bangalore 2
7.
Aromatic Agencies, 36 K.V. Temple Street, Bangalore.
8.
G.M. Ahuja & Co., 15-Old Kasai Road, Behind Raja Market, Bangalore 2
9.
M/s Bharani Agencies, P.B. 9506, Gandh Nagar, Bangalore 9
10.
Mascheijer Aromatics (India) Pvt. Ltd., I Floor, Haji Market, OK Road, Bangalore 2
11.
Aromatic (India) Pvt. Ltd., 38 Link road, Bangalore 3
BAMBOO STICKS:
1.
R. Ramaiah Arumugamgalli Kalasipalayam, New Extn., Bangalore 2
PACKING (PAPER, POLYTHENE COVERS, POLYTHENE PRINTING AND LITHO PRINTING)
1.
M/s Lakshmi Paper Industries, 33-Town [Link] Road, Salem 1, Tamilnadu.
2.
The Paper Products Limited, 60 Chinthamani Street, Madras 1
3.
R.K. Paper Industries, C-18 Ambattur Industrial Estate, Madras 58
4.
The National Litho Press, P.B. No. 30 Railway Feeder Road, Sivakasi (India)
5.
The Orient Litho Press, P.B. No. 17 Shivakasi.
