“Competition Should Be About Quality, Not Price” – Pratik Batavia
Over the past five years, prices of everything in the country, from food and beverages to consumer goods and all kinds of products, have increased. However, surprisingly, agarbatti products have become cheaper. Speaking to Sugandh India, Mr. Pratik Kiran Kumar Batavia, head of Rajkot-based Utsav Fragrance, said that the trade is centred around price and quality. Manufacturers are unable to increase prices regardless of how much raw material costs rise. At present, there isa shortage of raw materials due to the US-Iran war, and their prices are also increasing, but the market is not accepting higher prices for agarbatti and dhoop products. He said that this is why, when the crisis surrounding raw materials intensified, we reduced the weight of our products three months ago, because I could not compromise on quality. We have confidence in the quality of our products. If customers like the quality, they remain connected with the brand for a long time. Ultimately, consumers prefer quality.
Responding to a question about the R decline in prices of agarbatti products, he told Sugandh India that five years ago, customers were happy to buy a 250-gram pack of agarbatti for ₹100. However, due to the competition that began around pricing, manufacturers today are offering 400 grams of agarbatti for 100, even though the prices of all raw materials have increased by 25 to 30%over the past five years. However, а customer is willing to pay 250 for 100 grams of good-quality agarbatti and 100 for 200 grams. Agarbatti is one such product that does not disturb the customer’s monthly budget. They can manage their requirements well within ₹50-100. Yet, due to competition in the market, prices are being reduced, which also affects quality.
Answering a question from Sugandh India, Mr Pratik said that the same situation exists with schemes. The trend of pushing products through schemes is strong in the market. Offering schemes, especially during the festive season, has become a market reality. However, Utsav Fragrance is a quality-segment product. Therefore, we compete in the market on the strength of our quality. The Utsav Fragrance brand was started 15 years ago in Rajkot, Gujarat. He said that today our brand is recognised across 15 to 20 states because we focus on quality and do not chase quantity or price. Our effort is to offer consumers the best products. He said that they have around 400 products across 15 to 20 segments, including agarbatti, cones, dry sticks and gilli dhoop.
He told Sugandh India that we sell only those products that we can manufacture in-house. We do not engage in trading by sourcing raw materials from outside. We are also carrying out research and development on cow-based products. He said that Gujarat is our home state, so the brand performs well here, while we also have a strong presence in Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Odisha, Chhattisgarh, Rajasthan, West Bengal, Jharkhand, Punjab, Haryana and Delhi.
Our strongest supply network is in Maharashtra. Responding to a question about how Utsav Fragrance built its identity across several states in 15 years, he said that my background has been in trading. Therefore, when we launched our own brand, it gained acceptance easily, because I had worked with all the top brands and companies in the country, from Bengaluru onwards, and learned a great deal from them, which helped when we launched our own brand.
Speaking about the challenges facing the agarbatti industry, he said that our products do not face the same kind of challenge. When your vision is large, you focus on quality and range while also keeping an eye on pricing. Our brand works in both the mass market and the premium segment. He said that the biggest challenge today is credit. We have not been able to reduce it. Although all companies want advance payments, it is not always possible. If we want to expand our market and supply, we cannot impose strict rules regarding advance payments. Once the brand achieves stability, we can certainly consider it. He said that, in any case, I am not in favour of aggressive marketing.
Responding toa question about manufacturing other products, Mr Pratik said that along with business, I also give importance to home, family, friends, and my principles and values, because I believe that in life, all one needs is two meals a day. After that, everything remains behind here. This is why we do not manufacture many items, such as mosquito agarbatti, with which we do not agree, even though we have the working capital, structure and knowledge to do so. He said that this is also why, when raw material shortages occurred and prices increased due to the US-Iran war, I reduced the weight in my product packaging, but did not compromise on quality, because I believe that customers should receive the best quality.
Mr Pratik told Sugandh India that he is also working for the betterment of the trade through the Rajkot Agarbatti Manufacturing Group “RAM-G”. For this, seminars, meetings and conferences are regularly organised among people working in the trade across Saurashtra and Kutch. The objective is to maintain unity among manufacturers and people associated with the trade in this region. This has benefited companies. Most importantly, we are also able to keep track of defaulting companies, traders and salesmen. For this purpose, we have our own group where trade related information is shared. In addition, we organized a seminar on BIS standards, inviting several experts and industry professionals and also arranging presentations. Information was provided on how perfumers and manufacturers should operate under BIS regulations and how they can benefit from them. A large number of people attended the seminar.
Answering a question, he said that I have been associated with this industry for 25 years and have been hearing since then that small players would disappear from the trade. However, they have increased in recent years. The number of people doing business unethically is also increasing. Manufacturers’ margins are also declining. He said that there should be competition, but it should be for quality, and the time has come for the trade to seriously consider this issue.
He said that Gujarat is our home state, so the brand performs well here, while we also have a strong presencе in Madhya Pradesh, Maharashtra, Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Odisha, Chhattisgarh, Rajasthan, West Bengal, Jharkhand, Punjab, Haryana and Delhi. Our strongest supply network is in Maharashtra.
