The incense stick trade has become price-centric, not quality-centric: Prateek Batavia
Utsav Agarbatti, a prominent manufacturer based in Rajkot, has broadened its product portfolio, moving beyond premium offerings to include a wide range of products for the mass market. In an exclusive interview, the owner, Shri Prateek, highlighted a key challenge facing the agarbatti industry: a shift from quality to price-driven market dynamics. Prateek explained that while competition is not the primary concern, there is a growing fear within the industry “, that has resulted in the trade, which was once quality-centric, increasingly becoming price-centric over the past two years. As a result— unprincipled and unstandardised practices are now widespread, leaving customers dissatisfied.” Elucidating it further, he said that customers are no longer getting products that match the price they pay. This trend inevitably will continue, making it harder for them to obtain quality products at reasonable prices. One of Utsav’s innovations in agarbatti, the Zip Pack, has rapidly gained traction in the market. Initially priced at ₹32 per pack for distributors, the price has dropped to ₹28 and ₹27, despite demands, continue to grow. Prateek warned that if this trend continues, customers could receive only 90 grams of the product instead of (the usual) 100 grams in agarbatti and incense stick packs. Addressing the root cause of the issue, Prateek noted that the agarbatti sector remains cluttered, with smaller, local producers having more influence than the more established players. Despite their dominance in numbers, these smaller producers lack unity, which has allowed the market to exploit the situation to their advantage.
The company has introduced a hundred new products in the last six months as part of its expansion drive. Shri Prateek, head of Utsav Agarbatti, revealed in an interview that the new products include 400-gram jars, zip packs, 200-gram economy pouches, and a variety of incense products such as dry sticks, dry incense, and masala wet incense. In addition, over 50 more products are currently in the pipeline. Prateek stated, “At present, we are focusing primarily on incense sticks while also working on both wet and dry incense segments. Shortly, we plan to introduce Sambirani cups and masala agarbattis, making Utsav a company that manufactures across all segments of the agarbatti industry.” The company is dedicated to in-house production, with Prateek stating that all current and future products will be made on-site. He added that Utsav’s operational structure is divided into specialised departments for production, packaging, and R&D, with dedicated teams managing each function. Prateek personally oversees purchasing and sales, ensuring a streamlined approach to distribution. Their business strategy is to enforce complete control over its manufacturing processes, ensuring product quality and consistency across all market segments.
Utsav has been a prominent player in the premium market for 15 years, establishing a strong reputation for high-quality products. Shri Prateek, head of the company, explained that until now, most of Utsav’s products have been positioned in the premium segment. “We make everything in-house, from semi-finished materials to the final product. By overseeing the entire production process ourselves, we maintain full control over both quality and quantity,” said Prateek, attributing much of the brand’s success to this approach. However, the company has recently started focusing on the mass market due to lower volumes in the premium sector. “The mass-market products have received a good response from the outset,” Prateek added. Addressing the challenges of mass production, he noted that producing bamboo-less products is particularly difficult. “If 5 tons of incense can be produced in a day, producing even 1 ton of bamboo-less incense is a challenging task,” he explained. He also commented on the growing popularity of bamboo-less products, attributing the trend to companies that initiated the shift. “What we show to customers is what they buy, and that becomes the market trend,” he said. While acknowledging the rise of bamboo-less products, Prateek pointed out that the traditional agarbatti market continues to expand.
Shri Prateek, head of Utsav Agarbatti, recently addressed the challenges facing the agarbatti trade during an interview with Sugandh India. He highlighted the growing fragmentation within the industry, stating, “Where only five players are needed, there are now 25 operating. The business is getting divided, which creates the impression that demand is decreasing, even though the market is rapidly growing.” Prateek also discussed the rapid growth of bamboo-less products, emphasising that this segment would continue to expand. “This is why Utsav has broadened its portfolio. We are now entering all segments, including incense sticks, dry sticks, cups, and cones,” he said. Their commitment to in-house manufacturing remains central to its operations. “It’s my determination and passion that whatever manufacturing we do, it should be in-house,” Prateek explained. Coming from a marketing and trading background, he added, “I don’t like outsourcing our products. We manufacture everything in-house only after thorough research and development.” Prateek also touched upon the growing demand for Sambirani cups, a product that Utsav plans to launch soon. “The popularity of Sambirani cups has been growing for the past 3-4 years, which is why we haven’t launched them yet. This delay has set us back a bit, but now we have sorted it out. We have the space and the complete setup,” he stated. Utsav will soon launch masala agarbattis and Sambirani cups, all manufactured in-house.
Utsav Agarbatti, known for its commitment to in-house production, has raised the bar by manufacturing wet incense internally— a practice many of its competitors outsource. Shri Prateek, head of the company, highlighted Utsav’s unique position in Rajkot, stating, “We are the only manufacturer in Rajkot that can confidently say we produce wet incense.” Prateek further explained that Utsav produces the best quality wet incense compared to North India-made alternatives. “Making wet incense is a very complicated process. We prepare the raw materials every day while factoring in the weather conditions. We need to identify the markets for our products and assess the local weather conditions,” he remarked. In response to the growing demand for wet incense, Utsav Agarbatti has introduced zip packs for the mass market. The company has launched six varieties of masala incense in the premium segment, which are already available. Prateek also revealed that Maharashtra is currently the largest market for Utsav Agarbatti, with the brand being supplied across various states, including Gujarat, Rajasthan, Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Odisha, Jharkhand, West Bengal, Bihar, and Uttar Pradesh.
Utsav Agarbatti is making significant strides in both its manufacturing capabilities and marketing strategies. Shri Prateek, the company’s head, explained the careful approach Utsav takes when entering new markets. “Before launching marketing in a new state, we ensure that we have a representative in every district. Additionally, we appoint a party every 50 kilometres. Only then do we begin marketing,” he said. Regarding distribution, Prateek clarified that Utsav does not currently plan to set up depots. “I am not in favour of that at the moment. We supply directly from our factory,” he stated, reinforcing the company’s commitment to maintaining tight control over its distribution channels. Utsav Agarbatti’s manufacturing facility is expanding to meet growing demand. “The Utsav factory spreads across 45,000 square feet where all our products can be manufactured at the same location. We will soon begin producing cups and masala agarbatti there next month,” Prateek confirmed. Utsav has consistently used advanced manufacturing technology. “Even our five-year-old machines are still advanced by today’s market standards. We have state-of-the-art machinery for dry production, cutting, and packing,” Prateek added, highlighting the company’s investment in cutting-edge equipment to ensure product quality and efficiency.
Utsav Agarbatti is strategically shifting from its longstanding focus on premium products to the mass market. Shri Prateek, the company’s head, explained, “Until now, we have been focused on premium products, but now we are moving towards the mass market. There isn’t much volume in the premium market.” Prateek also discussed the challenges in the market, stating, “It doesn’t matter what technique or strategy a manufacturer adopts; it doesn’t make a significant difference. The market operates according to its own rules. It takes whatever it wants, in whatever quantity it wants. All our strategies fail in this context. So, we have to move forward with a price-centric approach.” While Utsav Agarbatti is currently available only in the offline market, Prateek revealed that the company plans to expand its reach through online marketing soon. “We will soon begin online marketing as well,” he confirmed. Evolving customer preferences enabled Utsav to introduce a new product concept. The company has launched a 400-gram zip pack featuring a ‘Two-in-One’ range, including Rose, Mogra, Sandal, and Kevda. Prateek explained the reasoning behind this innovation, saying, “Manufacturers often produce the best products, but sometimes they don’t appeal to customers. In such cases, we have kept two different fragrances within the same fragrance category. For example, there are two variations of the Rose fragrance, and one of them will appeal to the customer. Both are roses, but with a slight difference.” The new product line has already entered the sampling phase, with plans for a full market launch shortly.
