Indian incense stick industry

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<ol><li> 1. INDIAN INCENSE STICK INDUSTRY MARKET SURVEILLANCE REPORT </li><li> 2. Industry Overview India Agarbatti Market Size is worth Rs 2400 cr 70 Billionn sticks ~Bamboo 35,000 mts/annum ~Rawbatti 60,000 mts/annum Mostly hand crafted by cottage industries and NGOs in India Growing at a rate of10% p.a Exports- Rs 275 cr Use of Incense ~India : Worship ~Overseas : Ambience creation Aroma Therapy Kartikeya Verma </li><li> 3. Agarbatti Industry Highly Fragmented Industry Market Products Highly Fragmented 200 players with 400 brands Industry dominated by Local Players Top five players account for 20% value Top five pack /price combinations account for only 25% of the industry Large number of fragrances are marketed Kartikeya Verma </li><li> 4. 800 crores Export 200 crores Domestic 1000 crores The Market 2400 crores 1994 2010 Manufacturing Units 800 Registered 3000 Unregistered 400 Exporters Unorganised sector and highly fragmented Kartikeya Verma </li><li> 5. Export values 0 500 1000 1500 2000 2500 3000 3500 4000 Milliontons EXPORT 2005-06 2006-07 Series 3 0 5 10 15 20 25 30 Rs.Inbillions PROFIT 1989-90 1993-94 2003-04 2004-05 2005-2006 Kartikeya Verma </li><li> 6. Export Market 4% 7% 4% 15% 3.5% Kartikeya Verma </li><li> 7. Consumption Patterns Urban 39% Rural 61% Urban Rural Low involvement product No brand loyalty Agarbattis are low involvement products whose purchases are often impulsive Purchases based on packaging, fragrance and pricing Kartikeya Verma </li><li> 8. Cost Structure Masala 10% Non-masala 60% Packaging &amp; Marketing 30% Cost Distribution Masala 10% Non-masala 60% Packaging &amp; Marketing 30% 2% Raw Bamboo 8% Masala /Non-Scented Agarbatti 30% Perfumes 30% Packaging Material 20% Marketing 10% Miscellaneous Kartikeya Verma </li><li> 9. Marketing Approach Superior fragrance experience [Conforms to IFRA norms] Consistently superior product experience Inputs for Priority Markets Attractive &amp; differentiated packaging Fragrance locked Product Quality rating Systems Brand Health Tracker A superior fragrance development and selection procedure DEVELOPING BRAND PREFERENCES Kartikeya Verma </li><li> 10. Current market player ITC Mangaladeep N. Ranga Rao &amp; Sons The Incense Group Launched in 1948 Market leader in India with Current market share 8% Exports to 40 countries Its Brand Cycle agarbatti Lia agarbatti Flute agarbatti Rhythm agarbatti Launched its brand in year 2004 ITC the second largest player with market share of almost 5% Fastest growing brand ITC signed a MOU with Orissa and Tripura govt. for sourcing raw materials It provide employment for 10000 women in rural regions 2.1. Others old Brands Moksha Agarbatti Cofounded in year 1966 Bangalore Based Offer 35 fragrance Nandi Agarbatti Established in 1936 Bangalore based Production capacity 1000 tons Hem Incense Established in 1983 Production facilities at Mumbai &amp; Bangalore Bulk Exporter Devdarsadan Established in 1954 Manufactures Dhoop, Agarbatti &amp; Hawan Samagri Kisan Established in 1998 Located in Sujabad, Parao, Varanasi Kartikeya Verma </li><li> 11. ITC Incense Business Value Chain Bamboo Charcoal Jiggat Raw Batti rolling Perfuming Packaging Marketing &amp; Distribution NGOs SSIs ITC Limited Kartikeya Verma </li><li> 12. Raw Incense NGO Based Supply Chain ITC Limited Vendors NGO Women in Different Villages Spread over and of more than 100 Sq. Km Order Supplies Raw Material Supply Finished goods Brought Back Kartikeya Verma </li><li> 13. Thank you Kartikeya Verma </li></ol>