Industry is dependent on raw material imports: Hardik Brahmbhatt

Industry is dependent on raw material imports: Hardik Brahmbhatt

Jyoti Products provides raw materials including raw incense sticks, bamboo sticks, joss powder and machines

The “Make in India” slogan may not be enough to make the agarbatti industry self-sufficient in raw materials anytime soon. Essential raw material for incense industry bamboo sticks, joss, wood and rubber wood powder along with modern machines and their spare parts are heavily imported from countries like China and Vietnam. Only 5% of the bamboo sticks used in incense sticks are produced in India, despite efforts to cultivate a new variety in the North East, Madhya Pradesh, and other states.As per govt record, the production of incense sticks in the country is about 1400 tonnes per day, which requires at least 300 tonnes of bamboo sticks. However, the current production of bamboo sticks in India is only 5% of the requirement. Similarly, the joss powder, which was made from the bark of the Maida tree, used to be sourced from states like Orissa and Meghalaya. But after the government banned it, the powder now has to be imported. Companies like Jyoti Products supply raw materials to the agarbatti and incense industry through large containers from ports in Kolkata, Chennai, and Nhava Sheva. These raw materials are sold to customer companies who purchase container goods, which are supplied from the nearest port.

 

Hardik Bhai informed Sugandh India that his grandfather established the company in 1965. Initially, they produced scented incense sticks and distributed them in their home state and other regions. Later, in 2009, the company expanded its business by importing raw materials. They imported raw materials such as bamboo sticks, passion powder, T-1 wood powder from Vietnam, rubber wood powder, machines and spare parts from China. Currently, they supply these materials to companies on a commission basis. Furthermore, Jyoti Products has been a distributor for Vietnam based machine company Hungtuan, an export house. They developed the Agarbatti machine.

 

Talking to Sugandh India, Hardik Bhai said that the government banned the import of raw incense sticks in 2018. Furthermore, the government might ban the import of bamboo sticks as well. Asserting his company’s position on import bans, he informed Sugandh India that they are mass-producing raw agarbatti, incense sticks and dry sticks. He said his company is manufacturing & supplying unbranded raw dhoop and agarbatti to big players in the agarbatti industry. They are manufacturing white agarbatti and 12 inch coloured agarbatti as well. Production lines use 20 automated machines. They plan to deploy 100 more such machines by the next financial year. “Our focus is the premium agarbatti market and that’s what our machines deliver,” asserted Hardik Bhai. “We are ready to proliferate the perfume and essence market. Products are getting ready,” he informed Sugandh India.

 

During the conversation, Hardik Bhai shared that the industry is facing several challenges, including fluctuating raw material costs, high transportation and logistics expenses, and new customs duty regulations. Additionally, there is a possibility that the government may ban the import of bamboo, creating a rise in trend of bamboo-less products. However, this could decrease demand for agarbatti. He informed Sugandh India that despite an increase in bamboo production, the supply still falls short of current demands. Hardik Bhai also shared that the bamboo produced in the country is not suitable for agarbatti making due to its fibrous nature, which causes machines to jam and leads to wastage. In contrast, Chinese Mao and Vietnam’s Tangli bamboo work smoothly. If the government enforces a ban, it could disrupt the agarbatti market. Hardik Bhai mentioned that KVIC invited them for a meeting before banning the export of raw incense sticks. They shared that in 2011, 1200 tonnes of incense sticks were consumed daily, and 90% of the production was in the country. However, before the ban in 2019, there was a daily consumption of 1400 tons of incense sticks out of which 90% were imported. Currently, the country’s bamboo production is only 5% of the requirement, so it will take a long time to become self-reliant in bamboo stick production.

Hardik Bhai said “, Overexploitation of Maida tree (Indian Laurel) for the extraction of joss powder in the incense-making process led to the banning of the use. States like Odisha and Meghalaya used to give contracts for the extraction. In due course of time the forest started disappearing.” Adding to his comment he said “, joss powder is made by grinding Litsi glutinosa extracted from Maida tree (Indian Laurel). Post-ban, Guar gum is used as an alternative. It is a galactomannan polysaccharide extracted from guar beans. Unfortunately, it retains its peculiar odour in the agarbatti-making process.” 

 

Hardik Bhai remarked that the increased demand of dhoop and bambooless products can decrease the use of agarbatti and further reduce bamboo stick dependency.  Dry sticks manufactured come in three different diameters of 4, 5 and 6 mm with lengths ranging from 3-6 inches. He said dry sticks of 3mm diameter also come in 8 and 9-inch lengths; an alternative to agarbatti.

 

Hardik Bhai remarked that locally manufactured agarbatti-making machines don’t compare with the Vietnamese Hung Tuan machines. Eight and nine-inch agarbatti are made using these machines. Hung Tuan machines are almost maintenance-free. Demand for such machines has dropped because almost all manufacturers are using them. Hardik Bhai added that there might be more demand for these machines if they come up with new features.

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