Automatic Agarbatti Making Business in Ongole, Andhra Pradesh | Profitable Incense Stick Manufacturing Setup

Automatic Agarbatti Making in Ongole | Andhra Pradesh

The demand for Agarbatti (incense sticks) continues to rise across India due to its cultural, religious, and spiritual significance. Among various parts of India, Ongole in Andhra Pradesh has emerged as a promising location for Automatic Agarbatti Making because of its favorable environment, skilled workforce, and growing small-scale industries.

In this comprehensive guide, we’ll explore everything about Automatic Agarbatti Making in Ongole, including setup cost, required machines, raw materials, process, profitability, and market potential.

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Introduction to Automatic Agarbatti Making

Automatic Agarbatti Making refers to the process of producing incense sticks using automatic agarbatti machines that can roll, cut, and count sticks efficiently. These machines help entrepreneurs and small manufacturers scale their production and meet the ever-increasing market demand.

Synonyms used throughout this article include:

• Automatic incense stick making

• Agarbatti manufacturing

• Incense stick production

• Automatic dhoop stick making

• Agarbatti making business

Each of these terms represents the same profitable business opportunity available in Ongole and across India.

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Why Start an Automatic Agarbatti Making Business in Ongole, Andhra Pradesh?

Ongole, known for its strong agricultural base and developing industrial landscape, offers the perfect ecosystem for agarbatti manufacturing units. Here are some major reasons why entrepreneurs prefer Ongole for this business:

1. Availability of Raw Materials – Key raw materials like bamboo sticks, charcoal powder, jigat powder, and aromatic oils are easily available in Andhra Pradesh.

2. Low Investment and High Returns – With an investment of Rs. 1–5 lakhs, one can start a small-scale automatic incense stick making unit and earn consistent profits.

3. Skilled Labor – Ongole has a large pool of semi-skilled workers who can easily be trained for agarbatti production.

4. Strong Local and Export Demand – India exports agarbattis to over 90 countries, and Andhra Pradesh contributes significantly to the trade.

5. Government Support for MSMEs – Entrepreneurs can avail of state subsidies, training programs, and financial support under various MSME schemes.

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Automatic Agarbatti Making Machine – Types and Features

The heart of the agarbatti manufacturing process is the machine itself. Choosing the right automatic agarbatti machine ensures high-quality production and long-term sustainability.

1. Manual Agarbatti Making Machine

Used for small-scale or trial production. Operated by hand, it has low production capacity.

2. Semi-Automatic Agarbatti Making Machine

Requires manual feeding but offers higher efficiency than manual models.

3. Fully Automatic Agarbatti Making Machine

These are advanced machines that can produce 150–200 kg of agarbatti per day depending on size and model.

Key Features of Automatic Agarbatti Machine:

• Production speed up to 150–200 sticks per minute

• Adjustable stick size and thickness

• Durable stainless-steel rollers

• Low maintenance and energy-efficient operation

Manufacturers in Ongole can easily source these machines from nearby industrial hubs in Andhra Pradesh or other states like Tamil Nadu, Gujarat, and Maharashtra.

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Raw Materials Required for Agarbatti Making

To start automatic incense stick production, the following raw materials are essential:

1. Bamboo Sticks – Available in various sizes (8", 9", 10").

2. Charcoal Powder – Acts as a burning base.

3. Jigat Powder (Joss Powder) – Provides binding property.

4. Wood Powder – Used for smooth texture.

5. Fragrance Oil / Perfume – For different scents like sandal, rose, jasmine, lavender.

6. DEP or DPM (Solvent) – Helps mix fragrance evenly.

7. Packaging Material – For branding and sale.

All these materials can be sourced locally within Andhra Pradesh, reducing transportation costs.

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Agarbatti Manufacturing Process

Here’s a step-by-step guide for the automatic agarbatti making process:

1. Mixing the Raw Materials – Combine charcoal, jigat, and wood powder in correct ratios.

2. Feeding the Machine – Feed the mixture and bamboo sticks into the automatic machine.

3. Rolling Process – The automatic agarbatti machine rolls the paste uniformly around the stick.

4. Drying – Sticks are sun-dried for 24 hours or dried using a drying chamber.

5. Fragrance Application – Once dried, the sticks are dipped in fragrance oils.

6. Packaging – Agarbattis are packed in branded boxes or pouches for sale.

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Space and Manpower Requirements

To start an automatic incense stick making business in Ongole, you need:

• Space: Minimum 500–700 sq. ft. area for machine setup and drying.

• Manpower: 2–3 semi-skilled workers per shift.

• Power Supply: Single-phase connection is sufficient for small-scale operations.

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Cost Estimation for Automatic Agarbatti Making Unit in Ongole

Component	Estimated Cost (INR)
Automatic Agarbatti Machine	₹80,000 – ₹1,50,000
Raw Materials (Initial Stock)	₹25,000 – ₹50,000
Drying & Packaging Setup	₹20,000
Working Capital (1 Month)	₹30,000
Rent and Utilities	₹10,000
Total Estimated Investment	₹1,50,000 – ₹2,50,000

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Profit Margin and Business Scope

Automatic Agarbatti Making offers an excellent profit margin of 25–40% depending on the production scale and sales strategy.

For example:

• Production Capacity: 150 kg per day

• Cost per kg: ₹60

• Selling Price per kg: ₹100

• Daily Profit: ₹6,000

• Monthly Profit: ₹1.5–2 lakh (approx.)

With good marketing and fragrance variety, the business can grow rapidly in Ongole’s local market and neighboring cities like Guntur, Vijayawada, and Nellore.

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Marketing and Branding Strategies

To succeed in the agarbatti manufacturing business, focus on building a strong brand identity and market presence.

1. Local Retail Supply – Distribute your agarbattis to temples, shops, and wholesalers.

2. Online Selling – Sell through platforms like Amazon, Flipkart, and Meesho.

3. Attractive Packaging – Use quality packaging with regional branding like “Ongole Fragrance Agarbatti.”

4. Fragrance Diversification – Offer multiple scents such as sandalwood, jasmine, rose, lavender, and lemongrass.

5. Social Media Marketing – Promote through Facebook, Instagram, and local online groups.

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Government Support and Loan Schemes

Entrepreneurs in Andhra Pradesh can take advantage of several government schemes:

• PMEGP (Prime Minister’s Employment Generation Programme)

• MSME Loan Schemes through SIDBI and local banks

• District Industries Centre (DIC) subsidies

• Skill Development Training under Andhra Pradesh MSME Department

These programs can help reduce initial investment and promote industrial growth in Ongole.

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Future Scope of Automatic Agarbatti Making in Ongole

The Automatic Agarbatti Making Industry in Ongole is expected to grow significantly as both domestic and international markets expand. The global demand for eco-friendly, herbal, and premium-scented agarbattis is also increasing. Entrepreneurs focusing on quality and innovation can establish strong brand recognition from Ongole to international markets.

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Conclusion

Starting an Automatic Agarbatti Making Business in Ongole, Andhra Pradesh is a lucrative opportunity with low investment and high returns. With the availability of raw materials, trained manpower, and government support, Ongole offers the ideal environment for new entrepreneurs.

By adopting automatic incense stick making machines, focusing on quality fragrances, and using smart marketing, one can easily build a successful and sustainable agarbatti manufacturing business in Andhra Pradesh.