Koregaon Awaits Festive Revival as Agarbatti Market Remains Slow Parag Mehta
With the ongoing conflict in the Middle East causing a sharp rise in petroleum product and LPG cylinder prices, rising import-export costs and soaring inflation have affected the agarbatti industry as well. Mr. Parag Mehta, head of R V Trading, Kolhapur, told Sugandh India that agarbatti and dhoop product prices may increase by 15–20% once the festive season begins. He added that companies which avoid significant price hikes are likely to reduce product weight and stick count instead. Replying to a question, he said that the agarbatti trade is currently passing through a slow period. Every year, the market remains weak during the summer season, but it revives as soon as the festive season arrives. At present, demand is low because this is the lean season. Therefore, all companies are waiting for the festive season before increasing prices. He added that although fresh stock from the companies he deals with has already arrived, none of them has raised prices yet. Everyone is waiting for the festive season.
Replying to another question from Sugandh India, Parag Mehta said that he has been associated with the agarbatti business in Koregaon since 1991. He started his trade with Big Safari and later added Padmini, Shri Jay Nagpur, and Good Luck products. He also deals in First Choice Jahagirdar products. He informed that he is the super stockist of Skyora for Satara, Sangli, and Solapur. Skyora brand is performing well, and so far he has appointed 17 dealers, with an equal number planned to be added soon. He said that the brand performs well in ₹35 zipper packs, particularly in dry dhoop and Flora agarbatti. Speaking about the Koregaon market, he explained that 80% of the market consists of agarbatti and 20% of dhoop products. Compared to the Satara and Pune markets, Koregaon has a different buying pattern. Here, zipper pack products with an MRP of ₹70 are more popular, while dhoop sticks priced at ₹15 MRP also sell well. He added that Skyora’s wet dhoop, dry dhoop, and dry sticks enjoy strong demand. Sambrani Cups also have a good market here, although their sales peak mainly during Ganpati, Diwali, and Navratri.
Parag Mehta further told Sugandh India that Koregaon is primarily a market for mid-range products. Premium products witness higher sales only during the festive season. The economy segment priced at ₹10 has very little demand here, while products with an MRP of ₹5 have almost disappeared from the market. Products carrying an MRP of ₹70 but selling at ₹50 account for the largest share of the market. This segment alone represents nearly 90% of the market, while the ₹20 segment accounts for around 5%. He said that competition is extremely intense, yet despite inflation, companies are unable to increase prices because agarbatti and dhoop sales remain weak during this period. Everyone is waiting for the festive season. It is expected that most companies will then raise prices, while some brands may also reduce stick count and product weight.
Replying to another question from Sugandh India, he said that jumbo zipper packs of 400 and 500 grams are also quite popular in this market. In camphor products, Shri Jai’s Royal brand and Sangli’s Malik Sugandhalaya perform well. They do not deal in Chandan Tika products. In the pooja oil category, they stock Mauli brand, which has a good market presence.
He added that nothing particularly new is happening in the market at present. Companies are expected to launch new products only during the festive season. Consumers here also appreciate new fragrances and brands, provided the quality is good and the pricing remains reasonable. He said that some companies rely on dedicated marketing and sales teams, and their products also perform well. However, in most cases, products reach the market and achieve sales primarily because of the personal relationships and goodwill maintained by distributors and dealers.
