Gujarat to Gorakhpur to Global: The journey of Somnath Brand

Sagar spoke candidly about the early challenges he faced when entering the incense industry. He explained, “In the beginning, it was quite challenging, but those challenges also opened up opportunities, and I took risks. We managed to find reliable suppliers for perfumes, and Mr Abhinav(Abhinav Perfumers) was particularly instrumental in guiding us in this area. I also conducted extensive research and eventually began blending some of the perfumes myself.” He further credited key industry figures, including Mr Chandrakant from SH Kelkar, for their valuable support in helping the company create high-quality products. “With their help, we were able to develop quality items that met our standards,” Mr Popat said. In addition to focusing on product quality, Mr Popat emphasised the importance of competitive pricing. “While many offer incense sticks at Rs. 10, we made sure our products provided the same experience as those priced at Rs. 100,” he remarked, highlighting Somnath’s commitment to value for money. When discussing the issue of credit in the trade, Mr Popat acknowledged the complexities involved, saying, “Although the cost of goods may be low, the credit and other expenses can be quite high. In business, you must manage both giving and receiving credit, as we also purchase raw materials on credit.” However, he stressed that proper planning and clear policies are key to managing credit effectively. “If we work with a solid plan, credit doesn’t become a problem,” he added. Mr Popat also noted that while credit issues were more prevalent before the pandemic, the situation has significantly improved since then, providing a more stable environment for business operations.

In response to a question, Mr Sagar Popat, outlined the company’s strategic approach to marketing and distribution, which has played a key role in its success across India. He explained, “Before entering new states, we first identify specific zones. It’s not just about delivering products anywhere. After establishing our presence in Gujarat, we began with the Gorakhpur zone in Uttar Pradesh and then expanded to other regions. As a result, Somnath products became one of the top three in terms of sales in that area.” Mr Popat highlighted that this methodical approach to market entry is essential for building a strong brand. “Uttar Pradesh has been a very successful market for us, thanks to our excellent sales team and supportive super stockists. When the quality, distributor, price, and sales teams are all aligned, the brand naturally establishes itself,” he said. He also reflected on initial market perceptions in Uttar Pradesh, where some believed only inexpensive, high on quantity with black incense sticks would sell. “However, we offered premium perfume, less quantity products in white incense sticks priced at Rs. 10, and it became a hit in the market,” Mr Popat added, underscoring how Somnath’s commitment to quality and innovation helped overcome regional expectations and capture consumer interest.

Following its success in Uttar Pradesh, Somnath brand has expanded its footprint into Bihar, Jharkhand, and Odisha, where the brand has also gained significant traction. Mr Sagar Popat explained, “After establishing a strong presence in Uttar Pradesh, we turned our focus to Bihar, Jharkhand, and Odisha, where we’ve also been able to make a mark. We started operations in Maharashtra and Madhya Pradesh two to three years ago, and things are progressing well. Currently, our largest markets are Uttar Pradesh and Bihar.” The company has developed a robust distribution network, particularly in Uttar Pradesh, where 60 distributors serve districts within a 150-kilometre radius of Gorakhpur. “We have stockists in Varanasi, supported by 45 distributors, and super-stockists in Lucknow and Ayodhya. Western Uttar Pradesh remains a key target for us,” Mr Popat added. Somnath has also established a depot in Bihar and continues to expand its super-stockist network in Uttar Pradesh and Jharkhand, with some products also reaching Odisha. The company’s business in Tamil Nadu is growing rapidly, and operations have also begun in Karnataka, Telangana, Kerala, and Andhra Pradesh. To further strengthen its national presence, Somnath has adopted a depot system, which Mr Popat believes is essential for scaling the brand across India. “To build a pan-India brand, we need to implement a depot system. This model works effectively only when the company manages its depots. Large companies like Cycle Pure and ZED Black also operate with this system. For nationwide reach, we are committed to using the depot model across all states,” he explained.

Somnath brand’s Bilipatra range has quickly become a top seller, with Mr Popat, sharing that it has received significant demand since its launch. “The Bilipatra range is inspired from Belpatra, which is an offering to Lord Shiva. Just three months after its launch, we began receiving large-scale repeat orders,” he explained. The idea behind the Bilipatra range came during a family visit to Jasdan, Gujarat, where Mr Popat’s father suggested the idea. “Our family is from Jasdan, where there is a temple. I visited with my father, and it was during this trip that he proposed we launch the Bilipatra range, which has turned out to be a great success,” he said. The range, aimed at the mass market, offers products with an MRP ranging from Rs. 5 to Rs. 150. Mr Popat also discussed the customer base for Somnath’s products, explaining that those who purchase items priced at Rs. 10 often have a more discerning understanding of fragrances. “Many companies sell products in the Rs. 10 range, but they compromise on quality. While others offer 25 grams for Rs. 10, we offer 20 grams, but with the best fragrance. This focus on quality is why our products are so popular with customers,” he said. He further noted that many customers who initially bought products at Rs. 10 soon began purchasing higher-priced items, such as those priced at Rs. 20 and Rs. 50. “The reason is simple: we maintain the same high quality in products priced at Rs. 5 as we do in those priced at Rs. 150,” he added. Looking beyond the Indian market, Mr Popat revealed that Somnath Products has begun exporting to international markets. “We export to Africa, with six containers of our products sent to Nigeria last year. Popular products like Pineapple Gold, MuskMelon, and Marigold, Fruity Sweet are well-received there,” he said, highlighting the growing global presence of the brand.

Somnath Products Private Limited recently launched its premium brand, “Tattvam,” four months ago, aiming to offer top-tier quality in the incense market. Mr Sagar Popat, CEO of the company, explained, “With Tattvam, we aimed to provide premium quality products. To achieve this, we strictly followed the fragrance standards set by IFRA. These standards regulate the type of fragrance used, the permissible chemicals, and the percentage of each ingredient. We ensured full compliance with these guidelines in the Tattvam range.” In addition to meeting international fragrance standards, Mr Popat highlighted that all export products undergo rigorous testing to ensure they meet global quality expectations. “We have applied the same export-quality standards to our domestic market as well,” he said. The Tattvam range includes 60 SKU’s across incense sticks, dhoop, cones, sambrani, camphor, bamboo-less incense, and dry sticks, catering to a growing demand for premium offerings in the Indian market.

Mr Sagar Popat explained that some items in the Tattvam range are essential oil-based, with strict adherence to global fragrance guidelines. “We ensure that no restricted chemicals, prohibited under international standards, are used in our products. Only the best ingredients are selected to guarantee smoothness and top-tier quality. All products are non-toxic, and no animal-derived raw materials are used,” he said. The production of Tattvam products is 90% man made, with a significant emphasis on female participation. Additionally, the range is completely charcoal-free, aligning with the brand’s commitment to offering eco-friendly alternatives. A standout product in the Tattvam series is the neem leaf mosquito incense stick, which is 100% citronella-based. “Sampling for this product has already begun,” Mr Popat noted, highlighting the innovative approach to addressing customer needs with natural solutions. Tattvam’s marketing strategy is designed to separate it from the parent brand, Somnath. “All products in the Tattvam range are marketed through our own website Somnath mart and online platforms such as Amazon, Jio mart and Flipkart, with a clear distinction from the Somnath brand,” Mr Popat explained. Offline, we have a model called “Tattvam Saathi” where Tattvam is directly sold to retail outlets, including supermarkets and stores specialising in incense, dhoop, and puja items anywhere in India. “under this model there is no distributor and the retailers get discounts on MRP” he added. This model has already been rolled out in four states, with Maharashtra receiving the most enthusiastic response so far and is now being spread pan India. This strategic approach aims to expand Tattvam’s presence while maintaining its premium image and global compliance.

Somnath is set to expand its premium product offerings in response to growing consumer demand, particularly for high-end items priced at Rs. 1000 per kilogram. Mr Sagar Popat explained, “We are noticing a rapid increase in demand for premium products, which is why moving into the premium segment is essential. Additionally, focusing on exports will be key to our growth strategy.” Mr Popat also highlighted the rising trend for bamboo-less products, noting that this category is becoming increasingly popular, particularly among Indian consumers living abroad. “Indians abroad are very fond of good brands, and the demand for bamboo-less products is growing. We are preparing to expand this range further,” he said. In addition to its incense and fragrance lines, Somnath is diversifying into the food production sector. “We have a food production line under the Somnath brand, where we make khakhra. The Bit-Kit is a premium-quality khakra shaped like biscuits. We’ve also launched the world’s first gluten-free khakra and have developed varieties with oats, quinoa, flax seeds, and millet,” Mr Popat explained. These products come in unique shapes, including coin, mobile, and regular size forms, and have been well-received by customers. “Before entering the incense industry, I had always wanted to get into food production, which is why we are expanding in this area as well,” Mr Popat concluded, reflecting his broader vision for the company’s growth in both premium products and food innovation.