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 technoeconomically 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 sq.meters with electricity and water arrangements - Rs.1,500 PM MACHINERY AND EQUIPMENTS

SI.No. Description 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Wooden planks for rolling size 2 x 1 x 1 Weighing balance 10 kg. cap Hand sieves 100 mesh Wooden Racks 8 x 6 x 2 Plastic trays 20 lit. capacity Aluminium trays for dipping Delivery van cycle Plastic buckets, mugs, misc. equipments Office furniture, equipments fire extinguisher etc. Freights, Installation, electrification Total
STAFF AND LABOUR (PER MONTH)

No. 50 No. 2 No. 6 No. 9 No. 20 No. 2 No.

Values 3,000/1,600/250/6,750/600/1,600/8,000/4,000/10,000/3,000/38,800/-

Sl.No. Designation 1. Production Manager 2. 3. 4. 5. 6. 7. Storekeeper Clerk-cum-typist Sales Representative Delivery Van Boy Watchmen Semi-skilled workers (on contract basis @ Rs. 60 per day)

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/-

Total Fringe benefits @ 15% approx. Grand Total

RAW MATERIALS (PER MONTH)

37,600/5,650/43,250/-

SI. Name No. 1. Charcoal Powder 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Gigatu White chips powder Sandalwood Powder Bamboo sticks Kuppam Dust Perfumes Diluents like DEP etc. Paper cartons Wrapping paper Inner Paper bags Total
UTILITIES (PER MONTH) Rs. 800 Electricity, water etc. OTHER EXPENSES (PER MONTH)

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/-

Rent Stationery, postage, telephone Advertisement & Publicity Travelling Expenses Miscellaneous Repairs and maintenance Total
WORKING CAPITAL (FOR ONE MONTH)

2,500/1,500/1,500/1,000/1,000/5,00/8,000/-

1. 2. 3. 4.

Staff and Labour Raw Materials Utilities Other expenses

43,250 3,90,300 800 8,000

Total For Three months Say

TOTAL CAPITAL INVESTMENT

4,42,350 13,27,050 13,27,050

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

PROFITABILITY (PER ANNUM) Rs. 62,10,000 -- Rs. 59,17,3500 = 4,22,650 Net Profit per year 4,22,650 Net Profit Ratio Rate of Return = 30.94% = Net profit x 100 / Turn over = Net profit x 100 / Total Investment

62,10,000

= 4,22,650x 100 / 62,10,000 = 4,22,650x 100 / 13,65,800

= 7.11%

Break Even Point = Fixed Cost x 100 / Fixed Cost + Profit FIXED COST Depreciation of Machinery Interest on total investment Rent 40% on salary and wages 40% of Other expenditure 4,250/1,63,900/30,000/2,07,600/38,400/4,44,150/-

BREAK EVEN POINT = 4,44,150 x 100 / 8,66,800 = 51.24% ADDRESSES OF RAW MATERIALS SUPPLIERS:

1. 2. 3. 2 4. 5. 6. 7. 8. 9.

M/s Ravi Flour Mills & Industries, 339 Bapujinagar, Mysore Road, Bangalore 26 M/s H.P. Nanjudiah Setty & Sons, 62, Gundopath Street, Bangalore 53 M/s Ramachandra Pulverisers & Industries, IV Main Road, New Tharagpupet, BagaloreM/s Mahalakshmi Flour Mills, T-64 Gundopanth St., Bangalore 53 M/s Shakti Flour Mills, Swantantra Building, R.K. Puram, Bangalore 9 Shri Venkateswara & Co., No.11, Thulasi Thota Road, Bangalore 53 Lakshmi Grinding Mills, Mysore Road, Bangalore 26 Mastan Khan & Sons, 14 Pension on Mohalla, I Cross Mysore Road, Bangalore 18 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. 2. 3. 4. 5. M/s Lakshmi Paper Industries, 33-Town Rly.Station Road, Salem 1, Tamilnadu. The Paper Products Limited, 60 Chinthamani Street, Madras 1 R.K. Paper Industries, C-18 Ambattur Industrial Estate, Madras 58 The National Litho Press, P.B. No. 30 Railway Feeder Road, Sivakasi (India) The Orient Litho Press, P.B. No. 17 Shivakasi.