JAIPUR’S RAUNAK SPREADING FRAGRANCE NATIONWIDE GLOBAL TENSIONS INCREASE PRESSURE ON PRODUCTION COSTS: VIJAY ARORA
The tensions arising in the Strait of Hormuz due to the America–Israel–Iran conflicthave pushed global trade and energy supply into a serious crisis. Disruptions inmaritime traffic have affected the supply of petroleum products and gas. Its impact isnow clearly visible on the agarbatti, dhoop, and fragrance industry as well.
In a special conversation with Sugandh India, Mr.Vijay Kumar Arora, Mr. Karan Arora, and Mr. RaunakArora of Raunak Fragrances discussed in detailthe current market situation and the challengesfacing the industry. Due to disruptions in shippingmovement through the Strait of Hormuz caused bythe America–Israel–Iran conflict, an internationalcrisis has emerged regarding petroleum products andgas supplies. This crisis is affecting not only oil and gas, butalso the export and import of finished goods and raw materialsacross industries. Earlier, similar disruptions in shippingmovement through the Black Sea had also impacted trade.
The agarbatti, dhoop, and fragrance industry is nowfacing direct consequences of these developments. Agarbattimanufacturers are struggling with shortages of raw materials,especially imported ingredients. To deal with this, companiesare being forced to reduce production costs, increaseprices, or reduce product weight. Speaking withSugandh India, Jaipur-based Raunak Fragrancesfounder Mr. Vijay Kumar Arora and his sons Mr.Karan Arora and Mr. Raunak Arora said that theyare currently not compromising on quality orproduct weight, but cost-cutting measureshave become unavoidable. According tothem, this has become one of the biggestchallenges for the trade at present.
From a Small Garage to an Established Brand
Recalling his entrepreneurial journey, Mr. Vijay Kumar Arora said that hestarted in 1998 by manufacturing empty agarbatti boxes in a small garage. Gradually, after moving into raw material trading, he established his own brand, Raunak Fragrances.
Replying to a question from Sugandh India, he said that he has been associated with the agarbatti trade since 1998. Initially, they started by manufacturing empty agarbatti boxes in a small garage. Alongside this, they also traded in raw materials related to incense products, including raw agarbatti sticks, perfumes, DEP, and packaging materials. Later, around 2014–15, they launched their own brand under the name Raunak Fragrances. Today, the companymanufactures raw agarbatti using 60 machines. It also produces wet dhoop, sambrani cups, cones, and several other products.
He said that Raunak Fragrances offers high-quality products at regional pricing. According to him, if a product is priced at ₹50 MRP, the company guarantees equivalent product quality in that segment. He added that the company’s market position has been built entirely on quality, which is why they do not even employ dedicated salesmen. Replying to another question, he said that they initially started the agarbatti box business manually and later moved from raw material trading into focusing entirely on their own bran.
Expansion From Rajasthan to Multiple States
Speaking about the company’s market expansion and operational structure, Mr. Vijay Kumar Arora said that Rajasthan is currently the company’s biggest market. Apart from this, the brand has also built a strong supply network across Maharashtra, Bihar, Delhi, and several other states.
Replying to a question, Vijay Ji said that both his sons are actively managing different areas of the business. His elder son, Karan Arora, oversees production, while his younger son, Raunak Arora, handles sales, marketing, and accounts. He added that his own primary focus remains on productquality and costing. However, the industry is currently facing serious pressure because of rising prices caused by the war situation. Many companies have already increased prices or are planning to do so, but Raunak Fragrances is currently trying to reduce costs rather than significantly increase prices. He said that only a few products have seen price increases, while some products have had slight reductions in weight. According to him, retailer margins must remain healthy; otherwise retailers will not push the products in the market. Therefore, aggressive price hikes are not practical.
Wide Product Range for Every Budget
Speaking about the company’s product portfolio and market demand, Mr. Raunak Arora said that Raunak Fragrances offers an extensive range across multiple MRPs and packaging formats. According to him, Raunak Gold and Sab Rang are among the company’s highest-selling products. Replying to a question from Sugandh India, he said that Raunak Gold and Sab Rang are among the brand’s best-selling products and are available in half-kilo box packaging. Sevenin-One products in half-kilo packs also perform well, while White Batti pouch packs are also popular.
He explained that the company offers products in both box and pouch formats starting from ₹5 MRP. In the ₹10 category alone, the company has more than 50 product ranges. Similarly, there are 10–15 pouch variants in this segment. In the ₹50 category, the company offers 60–70 pouch variants in both white and black agarbatti. These include 18 product ranges in pack sizes of 100g, 125g, 200g, 400g, and 450g.
The company also offers ₹20 MRP products in both box and pouch packaging. Raunak Fragrances additionally has products in 500g packaging and two 1-kilogram pouch variants under the Wonder and Sab Rang names. In muttha packs and dhoop products, the company offers both pouch and box formats in ₹5, ₹10, ₹20, and ₹50 MRPs. Altogether, the company has more than 60 product ranges. He emphasized that all products are manufactured in-house, allowingthe company to maintain control over both quality and production costs.
Local Brands Offer Good Quality at Affordable Prices
Speaking about competition between local and large brands in the agarbatti industry, Mr. Vijay Kumar Arora said clearly that everyone has the right to do business in the market. According to him, local manufacturers are also offering good-quality products at affordable prices and should not be viewed negatively as competition.
He said that while some large manufacturers consider local brands a challenge to the trade, local manufacturers are actually supplying quality products at lower prices through cost optimization. He added that Raunak Fragrances aims to grow much further in the future. Both his sons are educated and capable professionals who have joined the business.
He also said that the company takes good care of its employees by providing PF, ESIC, and other health-related benefits. Employeesare paid on time, and this is one of the reasons behind Raunak’s rapid growth. Replying to another question, he said that the company currently has no plans to enter exports. In fact, they are already receiving orders from places such as Bengaluru and Ladakh, but are presently unable to supply products to those regions.
Rising Costing Has Become the Biggest Challenge
Discussing future plans and present challenges, Mr. Raunak Arora said that the war situation and importrelated issues have caused sharp increases in raw material prices. At present, the company’s main focus is on balancing production costs and stabilizing the market.
Speaking with Sugandh India, Raunak Ji said that due to rising raw material prices linked to the America–Iran conflict, costing structures have been severely disturbed this year. According to him, managing these costs has become the company’s biggest immediate objective. He explained that the prices of imported materials related to the agarbatti industry — including DEP, perfumes, dhoop oil, LPG gas, and packaging materials — have increased significantly due to import disruptions.
Therefore, the company is currently focused on controlling these costs rather than increasing product prices excessively, as major price hikes could disturb the market. According to him, cost-cutting is presently the only practical way to maintain market stability.
He further added that in the future the company plans to focus more heavily on dhoop sticks and cone products, as demand for these categories is steadily increasing.
COVID period was a Business Opportunity
While the COVID period proved extremely difficult for many industries, Raunak Fragrances managed to convert the crisisnto an opportunity. Raunak Ji explained that the stoppage of raw agarbatti imports in 2019, followed by the surge in demand during the lockdown period, created major growth opportunities for the company.
Replying to a question from Sugandh India, he said that by 2020 the company already had a large inventory and had installed several machines after raw agarbatti imports stopped in 2019. During the COVID lockdown, Rajasthan faced shortages because products from other states could not arrive. As a result, agarbatti demand in the state increased by nearly two to three times despite the pandemic situation. He said thatthe company’s newly installed machines played a crucial role during that period. Unlike many other states that faced labor shortages, Raunak Fragrances did not face major problems related to labor or raw materials. Since imports from Vietnam had stopped, the company significantly increased production. In this way, what was a crisis for many businesses became a major opportunity for Raunak Fragrances, and the company grew rapidly during the COVID period.
Celebration – Top-Selling Product
Speaking about the company’smost popular products, Mr. Raunak Arora said that Celebration is currently the hottest-selling product of Raunak Fragrances. Alongside this, products like Raunak Gold and Sab Rang also maintain a very strong market presence due to their quality and packaging.
Replying to a question, he said that Celebration is the company’s hottest-selling product. Its pouch variants are available at ₹15 and ₹25 price points, while zipper packs are available at ₹70 and jumbo packs at ₹165.
He added that Raunak Gold is one of the highest-selling jumbo packs in Rajasthan. Apart fromthis, the ₹50 family-pack zipper and the 1-kilogram Sab Rang pouch pack are also performing strongly in the market. These products are sold along with gift offers, andconsumers highly appreciate their fragrance and quality.
He said that while many companies have reduced product weight to 800–900 grams, Raunak Fragrances has maintained both its weight and pricing standards. This is one of the main reasons why the 1-kilogram Sab Rang pack continues to remain a top-selling product in the market.
