From Raipur to the Heart of India: Ahuja Agarbatti
Chhattisgarh market is dominated by ₹100/kg agarbatti products
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Ahuja Agarbatti Company, based in Raipur, has been a prominent player in the agarbatti industry since 1978. The company offers products ranging from packs with an MRP of one rupee to most premium price segments. Ahuja Agarbatti boasts over eight hundred products in the market, with the 1-kilogram pack, priced at ₹100, being the most popular. Mr. Amit Ahuja, the company’s chief, revealed in an interview with Sugandh India that in the extensive regions of Chhattisgarh and Odisha, 90% of customers prefer products with greater quantity and weight. Premium products account for only 10% of the market. He further stated that the company’s half-kilogram and 1-kilogram products are in high demand, and they will soon launch a 5-kilogram agarbatti pack. Responding to a query, he explained that 80% of Chhattisgarh’s area is rural, where residents burn 10 to 20 agarbattis daily and require half-kilogram or 1-kilogram packs at lower prices. The lack of emphasis on fragrance quality in this region results in the highest agarbatti consumption in the country. In addition to agarbatti, the company also produces detergent, which is sold across several states.
Mr Ahuja informed Sugandh India that his grandfather, Mr Moolchand Ahuja, founded the Ahuja Agarbatti Company in 1978. Initially, the company operated as a small-scale industry. Before this, his grandfather and father had worked in an agarbatti company, where they acquired the necessary skills and launched their first brand, Ahuja Lakshmi Agarbatti, followed by Upasana. At that time, they offered products priced at 5, 10, and 25 paise. Marketing posed significant challenges due to limited transportation routes and infrastructure. The family dedicated substantial effort to establishing the industry, with contributions from his grandfather, father, grandmother, mother, and all other family members.
He highlighted that, in addition to their brand, the company supplies raw materials. They supply all agarbatti-related raw materials, while some materials are imported from abroad. He detailed that they mix coal powder, joss powder and jigat powder in their raw materials. Furthermore, the company produces agarbatti, dhoop, camphor, puja ghee, puja oil, and all other items necessary for religious rituals. In response to a question, he noted that their products are distributed not only in Chhattisgarh and Odisha but also in Madhya Pradesh, Bihar, and Maharashtra. Their products enjoy significant popularity in Odisha, Chhattisgarh, Bihar, and Madhya Pradesh, and they are also available in West Bengal.
In response to a question from Sugandh India, Mr Amit explained that he assumed control of the business in 2000. Although the company faced numerous challenges then, it gradually found solutions. He highlighted that the company appointed Amisha Patel as its brand ambassador. Upon taking over, they introduced a pack of 100 sticks for ₹5, known as Radha 100 agarbatti, which quickly gained popularity. He noted that the market in Chhattisgarh is straightforward and reliable—the people say what they mean and do what they say. Consumers in this region prefer agarbatti with the highest quantity and weight at the lowest price, which likely led to the introduction of half-kilogram and 1-kilogram packs in the country. He added that external products do not perform well in this market. Due to high transportation costs and distances, these products become expensive. In contrast, the local market demands more affordable, heavier, and more basic-smelling agarbatti, which local manufacturers can easily provide.
Mr Ahuja informed Sugandh India that, in the past, families made agarbatti at home, but this practice has ceased. Currently, three to four large local producers supply not only within the state but also to neighbouring states. He highlighted the rapid growth of the agarbatti market in Chhattisgarh. The introduction of machinery has reduced the number of small players and increased production costs. Raipur and Bilaspur in Chhattisgarh serve as major centres for agarbatti production, from which supplies are dispatched to various states. The company also exports products to Bangladesh, Nepal, and Thailand. He observed that the market has evolved, with consumers now favouring fragrances and seeking novelty. This shift has led to a growing demand for fruity and scented products. The packaging has progressed; following the use of pouches, jar packs have been introduced, with further changes anticipated, including the introduction of a 5-kilogram pack in the future. He noted that 5-rupee and 10-rupee boxes are used for temple worship and rituals. The volume of cheaper products is substantial. For instance, if products worth 5 lakh rupees are sold at 1 or 2 rupees each, the same volume of goods would cost 50 lakh rupees if sold by branded companies.
Mr Ahuja outlined the company’s strategy, explaining that they introduce eight to ten new product ranges every year to keep up with changing fragrance trends, which is a common industry practice. He pointed out that dry sticks and incense cones are not particularly popular in this market. Instead, agarbatti remains the most widely used product, with customers favouring packs with more sticks or greater weight. Although the company offers a ₹2 range, the ₹100 pack of 1 kilogram is the most popular. The demand for larger packs is expected to increase in the future. He also noted that there is no demand for loose agarbatti; rather, affordable products under various brands are in high demand. The company provides premium products priced at ₹500 to ₹1200per dozen. These premium products are typically sold during festivals and are mostly used in showrooms, shops, and offices, while homes and temples generally prefer cheaper products. In response to a query, he mentioned that the company does not manufacture sambrani cups, though this market segment is growing, with the highest demand in Odisha.
In response to a question about the impact of Madhya Pradesh and Maharashtra as majoragarbatti hubs on the Chhattisgarh market, Mr Amit explained that loose agarbatti is supplied from Raipur to Madhya Pradesh and Maharashtra. When raw materials shortages are faced, supplies are shifted between these regions as needed. Consequently, Chhattisgarh does not experience any detriment from its larger neighbouring states; instead, it benefits from this system. He noted that the company has set up a depot for raw material supply, extending as far as West Bengal.
He also indicated a significant demand for agarbatti in Chhattisgarh, Odisha, and Maharashtra. Major companies have their products available in these regions, with Mumbai-based products performing well. His company also manufactures agarbatti, addressing the high local demand.
