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Incense Sticks

Incense sticks also called Agarbatti are fragranced sticks used from ancient period by people all over the world. Incense sticks find their way to most homes for religious or fragrance purposes. Agarbatti is a consumer product that the demand is found throughout the year and it increases during festive days. The Agarbatti industry depends heavily on forest products for its raw materials and Bamboo sticks are the major raw materials used in the Agarbatti industry. Now a days, electric operated high capacity round stick making machineries are available for processing of bamboo sticks, which are very much suitable for the industry. These machines are easy to operate and produces quality incense sticks.

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Capacity of the Plant/Unit (at 100% capacity utilization)

38,500

Year wise capacity utilization

Year

60%

Year

70%

Year

80%

Year

90%

Year

100%

Raw Materials Required

entreprenuearship

Guggal
Sandalwood Powder
Dhoop Powder
Cascalia Powder
Charcoal Powder
Groundnut Shell
Wood Dust
Diethyl Phthalate (D.E.P)
Jigat Powder
Perfumes
Plasticizer
Preservative
Packing
Bamboo Sticks

Final Product

Agarbatti

Infrastructure Required

Factory

Land & Buildings

Plant & Machinery Required

Incense Stick Making Machine
Leaf Cutting Machine
Heat Sealing Machine
Sieves
Weighting Balance
Aluminium Tra

Emploment Generation:

1 Skilled Labour

2 Unskilled Labours

Project Cost (subject to respective DPR) In Lakhs

Leasehold land	1.60
Civil works and Buildings (3000 sqft @800/-)	30.00
Plant and machinery (Annexure)	3.04
Misc Fixed Assets	1.75
Escalation & Contingencies	1.82
Preliminary & Preoperative Expenses	3.49
Contingencies & Escalations	52429.00
Sub-Total (A)	41.70
Total Working Capital Req (25% of 1st Year Proj.	8.09
Total Project Cost	49.79

Means of Finance In Lakhs

	Amount	Percentage
Term Loan (A)	25.02	50%
Working Capital (B)	4.85	10%
Total Loan (A+B)	29.87	60%
Equity	19.92	40%
Total Funds Required	49.79	100%

Financial Benchmarks

	Year	Year	Year	Year	Year
Target Revenue	46,20,000	46,20,000	46,20,000	46,20,000	46,20,000
Break Even Point	70%	75%	80%	85%	90%
DSCR including Principal Repayment	3.17	2.34	2.48	2.76	3.07

Basic Assumptions

Power rate per unit	8.5 Rs / Unit
Power Requirement	6.5 Kwh
Interest Rate Assumed	8.50%
Repayment Period	9 Months Moratorium and 7 Years' Repayment

Others

Training Institutes	N.A.
Whether the Service is in the negative List Under NEIDS and MSME?	No

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