The industry with almost no entry barriers, offering a widespread employment opportunity to the rural population, requiring a very minimal investment still holds a market size as large as ₹3000+ crores in India.
This is the Indian Incense and dhoop stick market we are talking about. A dhoop stick / incense stick is a stick when burnt emits a fragrance and a mild smoke which is likely to air the room with a rejuvenating odour.
India is the world’s largest incense and dhoop stick producer and also well known for it because of the authenticity 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 revenue this industry brings now is immense. Giving you more than just reasons to enter into this industry
Because of India’s capability to produce dhoop sticks using e labour intensive techniques, competitive prices in different shapes and fragrances ranging from lavender, sandalwood to rose and and lilies etc.
The market potential for dhoop sticks smells like an opportunity because it brings in not only the Indian consumer demand but also larger global demand since the production in countries like USA is only limited to unscented or raw dhoop sticks.
Though the uses of dhoop sticks are slightly limited they are required in every Indian household:
The licenses required to set up a dhoop stick making business are:
Investment required to set up a dhoop stick making business would be between ₹200000-₹300000
The profits made from a dhoop stick making business would be ₹60000 per month
Also read :
The consumers for the dhoop stick/incense sticks make use of them for different end purposes so accordingly the target market for the dhoop stick market is as follows :
Religious places : Many religious and holy places make use of dhoop sticks of mostly sandalwood fragrance as a part of their respective rituals
Meditational and retreat centres : Your dhoop stick making business can also cater its product to the Ayurvedic and meditational centres who make use of them as a part of a healing process for individuals
Spas and massage centres : Dhoop stick manufactured by you is also be used by spas and massage centres as a part of aromatherapy and to lighten the mood
Among elders and old aged population : The dhoop sticks made can also be targeted among the elders and old aged people who have a busy schedule and are life prone to a stressful life. Dhoop sticks are used for curing headaches, soothing the mood etc
Resorts / hotels : They use dhoop sticks as a supplement to the room fresheners and perfumes so as to ensure a pure, natural and authentic Indian set up.
The area required to set up a dhoop making business would be 1000 sq ft.
The raw materials required for making a dhoop stick are as follows :
The machines required for the a dhoop stick making business are:
The manpower requirement for a dhoop stick making business is
Moreover a thorough guide and training to them must be given in terms of equipment handling, safety and precautions, machine using procedures etc
The business model for the dhoop making business can be defined 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 :
Target consumers : The target consumers for your shop stick making business would be :
Competitor review : Dhoop stick is product out of which consumers seek purity and good fragrance so any brand that offers that will do. But there are certain companies which through their long run, legacy and experience is businesses gain a loyal customer base.
So the major competitors in this business are :
The marketing strategy for dhoop stick involves focus on developing:
The dhoop stick industry’s growth has been rising high up in the air just like its fragrance :
By setting up a dhoop stick making business one can earn a profit margin up to 10%
Why don’t you light up your room with one of those dhoop sticks while we help you make a decision of whether or not to make a set up a dhoop stick making business :
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