Medium segment has a 50% market dominance in metros: Sri Ram Upadhyay
Mr Sri Ram Upadhyay, the head of Lakshmi Sales Agency in Hyderabad, has been in the incense industry since 1984. He highlights that mid-priced quality products capture almost half of the market. In an exclusive interview with Sugandh India, he noted that incense products in box packaging priced at ₹10 and ₹20 are particularly popular. A growing trend of zipper packs is there in the dhoop-agarbatti business. The premium market comprises 20-25% of sales, while economy products account for 30-35%. The remainder of the market is predominantly of medium-range products. Founded in 1984, Lakshmi Sales Agency has collaborated with notable brands such as Bharatwasi, Panini, Golden Cobra, Real Fragrance, Bimal, Basant and Balaji. Mr Upadhyay introduced Varsha Incense. This brand gained popularity in Telangana and Andhra Pradesh. The agency boasts a robust distribution network comprising 50-60 distributors.
In a conversation with Sugandh India, Mr Upadhyay highlighted the robust market for agarbatti and incense across Hyderabad and the broader Telangana region. He observed a shift in market dynamics, with agarbatti now holding 60-65% of the market share. Bamboo less incense has grown to 35-40%. Mr Upadhyay pointed out that boxes of incense products priced at ₹50 are in demand. Although the demand for zipper packs of agarbatti is currently low, there is a notable rise in the demand for dry sticks. He elaborated that they sell products Real Fragrances starting at ₹50. The market for incense priced at ₹20 MRP remains substantial due to its higher volume, whereas wet incense is less favoured. Responding to inquiries, he noted that Sambhrani cups from brands such as Allied, Basant, and Real are well-regarded, with the 12-cup pack priced at ₹40 being the most prevalent. The company sells Swastik camphor, a leading Hyderabad-based brand that dominates the market. They also sell roll on from Oriental, with Sandal, Jasmine, and Rose fragrances showing strong demand. In the premium segment, Balaji stands out. Customers typically spend approximately ₹500 per month on agarbatti and incense products, as mentioned by Mr Upadhyay. He also noted that while 20-25% of customers base their purchases on brand names, there is a universal demand for high-quality products.
