

The agarbatti industry in Nagpur, particularly among local producers, has strong ties to Kannauj—the perfume capital of India. For centuries, perfume traders from Kannauj have been relocating toNagpur. Dawood Baig, the owner of Hansraj Agarbatti Company, is one such example. He is thethird generation in his family agarbatti business. Speaking to Sugandh India, Dawood Baig revealedthat his grandfather started this business in Kannauj, while his father later established operationsin Nagpur. Founded in 1984, Hansraj Agarbatti began producing branded and roll-pack agarbattis.Over time, the company modernised its production processes. The company focuses entirely onLoban products, including agarbattis, dhoop, and scented sticks.
Baig, in an interview with Sugandh India,highlighted that their branded products cater to both loose and packaged segments. The company produces pouches,zipper packs, white agarbattis, scented sticks,and roll packs. They initially started with rollpacks. Since 2000, they have added single pouches…followed by zippers and various other packaging formats by 2008. Launching their Loban-based incense products in 2015-Hansraj Agarbatti Company gained considerable market share rapidly. Dawood Baig noted that Loban was initially popular in black agarbattis,but white agarbattis later gained traction.
“To meet the growing demands of the incense market, they are increasing their production capacity. Presently, four factories produce two tonnes daily, with a separate unit producing 1.5 tonnes of white agarbattis— the production capacity shall increase shortly.”
The company now offers a variety of Loban products,including zipper packs, pouches, boxes, and jumbo packs. Additionally, they manufacture dhoop sticks and are preparing to launch sambrani cups soon. The Hansraj brand offers products ranging from ₹10 to ₹600, with the ₹70zipper pack being their best-seller.
Dawood Baig announced that their agarbattis enjoy good markets all over India and specifically in Maharashtra, Hyderabad,Karnataka, Madhya Pradesh and Chhattisgarh. Their premium Loban [₹150per kilogram] remains a top-selling product with high demand. Currently, they produce 200 tonnes per month. However, demand is approaching 400 tonnes.The product enjoys nationwide distribution.
Discussing plans, Dawood Baig announced that the company intends to enter the export market soon.They are also preparing to launch new variants,including dhoop sticks, bamboo-less incense,and additional incense products. To meet the growing demands of the incense market, they are increasing their production capacity.
Presently, four factories produce two tonnes daily, with a separate unit producing 1.5 tonnes of white agarbattis— the production capacity shall increase shortly.The company offers premium products in the₹100 to ₹200 range, with some priced above₹200, available in both incense and dhoop stick categories.
Dawood Baig discussed the growing trend of introducing new fragrances in Loban, such as sandalwood, rose, and other scents. However,he noted that the distinct natural aroma of Loban makes it challenging to blend with other fragrances, despite ongoing experimentation.He highlighted that his Loban stands out as the best in the country due to the stringent focus on sourcing high-quality raw materials.
Addressing industry challenges, Dawood Begpointed to labour shortages and fluctuating raw material prices. Bamboo sticks imported from China experience significant price volatility.“Six months ago, they cost ₹100, then rose to₹140, and now stand at ₹125,” he explained,adding that these changes drive up production costs, forcing price adjustments.
While other raw materials, like wood powder,remain relatively stable, the increasing demand for Loban agarbattis presents opportunities and challenges. He described Loban as unique,noting that its natural fragrance can transform the vibe indoors and even outdoors. With its growing popularity, Dawood Beg believes the future of Loban is promising but emphasises the critical need to maintain product quality. “We remain especially vigilant about this,” he concluded.
Venue : Mumbai
Date 12th and 13th April 2025