Zed Black Aiming for Number One

Honesty and good policy crucial for product success: Ankit Agrawal

The journey from garage to become the one of three largest company in the country

MDPH manufactures 1200 varieties of products

Fragrance has been an integral part of Indian cultural and religious traditions. The tradition goes back to thousands of years of use of fragrances in worship, yagya, havan. This is the reason that there are hundred and fifty years old agarbatti companies in the country, on the contrary the 3 decade old Zed Black, the agarbatti brand of Mysore Deep Perfumery House (MDPH), which started from Indore is now amongst the three largest incense sticks companies in the country.

Mr. Prakash Agarwal  had his humble beginnings in 1992 with an Agarbatti Factory started in a small garage of his house and today MDPH has grown into a big industry group, manufacturing more than 1200 products. The company has roped in star cricketer MS Dhoni and film actor Hrithik Roshan for brand promotion. MS Dhoni being the brand ambassador of Zed Black Agarbatti and Hrithik Roshan of Manthan Dhoop. Zed Black Three in One being company’s countrywide popular product.

A lot of Industrial groups have a history of humble beginnings. MDPH is now part of that league. Ankit Agarwal, Director & Partner, MDPH, possesses an easy-going and simple personality, who along with his family constantly strives for the quality of his products. They believe that MDPH’s success is the result of honesty and dedication towards the product quality, efficient management as well as honest dealing with workers, consumers and distributors. With this policy the company is connected to 3500 distributors through 36 depots. The company employs about 4000 workers, of which 75 percent are women. The company has 5 manufacturing units located in Indore, Madhya Pradesh, one of them being the world’s largest manufacturing unit of raw incense sticks. The company manufactures 30 million incense sticks per day thanks to its state-of-the-art and world class manufacturing units.

MDPH reaches out to the general consumers through 7.50 lakh retail merchants. Also the products are exported to about 40 countries including USA, China, Japan, Brazil, Ethiopia, Netherlands, Australia and Malaysia. The importance of MDPH can be understood from the fact that famous cricketer MS Dhoni and film actor Hrithik Roshan have endorsed its products. MDPH has around 1200 products at various prices and quality range which includes Agarbatti, Dhoop Batti, Hand Sanitizer, Hand Wash, Edible Oil, Essential Oil, Packaged Tea, Mosquito Coil, Natural Hair Colour, Heena, Soya Chunks and Confectionery. The flagship brand of the company, Zed Black Incense Sticks, is one of the top 3 brands in its category in India. The company’s tagline is ‘prarthna hogi sweekar’ meaning ‘Prayer will be accepted’. Agarwal says that he completely abides by this tag line in his business, because when you do your best, all your prayers will be fulfilled.

Tell us about the journey to one of the top 3 incense stick companies in India.

It all started three decades ago as a humble beginning by my father. Before 1980, my father used to work in a clothes shop, but he had a tremendous urge to set up his own business. Following his dreams he tried his luck in various fields, but did not succeed. This made the family go in despair that he would not be successful, but after my birth in 1985, he borrowed 10 lakh rupees and started a business of incense sticks. Although my grandmother wanted him to train in the incense stick business first, but instead my father started the business with his determination. He worked very hard and traveled all over the country expand the business. He would never associate the rich and famous of the trade with his business. For example, when he went to Kanpur to appoint distributor, he did not offer it to the top agarbatti distributors, but instead those who would work hard for the brand. Zed Black became a hit during 1999-2000 and became a pan India brand, it is then it was decided to make Zed Black as the main brand . All the brands that followed carried the brand name of Zed Black, and the business went on until a tragedy struck in 2003, causing a huge loss due to a factory fire. We got broke  but we didn't give up and started everything again. I joined the business in 2004-05 and my younger brother Anshul Aggarwal followed in 2010-11 and  from then on the things started to improve for us and today MDPH is among the 3 largest agarbatti companies in the country.

Your business has spread not only in the country but globally. How do you manage everything?

Like every big and successful business, we have delegated the tasks and everyone has a contribution in this. We are in the top 3 only due to superior products, expansion of business, honest distributor association and above all the company’s good policies. To accomplish this we have hired professionals and along with that the whole family including my parents are involved in the business. My mother looks after the blending of incense sticks perfume. My brother is a B Tech from IIT Delhi and supervises the production process using state-of-the-art technology, machines and software. I am responsible for sales, marketing and import and export. There is a Research and Development (R&D) department, which continuously works to make the best products and fulfill the needs of different states and people throughout the country.

India is huge with various cultures and ethnicities. In such a situation, how do you fulfill everyone’s demand?

Indeed it is a very big country. There are different religions and languages ​​and they have their preferences. Everyone has different demands, but there are some common demands too. Our  product Zed Black Three in One is preferred everywhere. Different products run in some states, but some products run everywhere. Zed Black three in one is a pan India brand, which operates from Guwahati to Gujarat and Kashmir to Kanyakumari. Talking about other demands, Pine Apple, Rose, Sandal, Mogra are also in demand everywhere. In South India the demand for incense sticks is different than in the North. Everyone needs a fragrance, so everyone has different taste.

With so many brands in the market what is your marketing strategy to stand out?

It is not just the product that matters in establishing a brand. The real thing is what is your intention and policy? what vision do you have? Incense sticks are made in every street. It’s one thing to make a good product that works across the country, but the main thing is along with giving a good fragrance and taste what your policy is. Uniform rate, uniform scheme and uniform distribution policy to all distributors pan India has always been the objective of the company. To give equal benefit to all the distributors and to appoint only one in a locality and above all to supply goods within 48 hours whenever there is demand anywhere in the country. For example, Kanpur, Banaras, Ghaziabad and Agra are the 4 major centers of Uttar Pradesh from where goods can be delivered anywhere in UP in 48 hours.

Tell us about your export and the market of incense sticks abroad.

We are quite new in the market as compared to other companies like in Bengaluru some are over 150 years old. In comparison, Zed Black is a 30 year old brand. First we established ourselves all over the country. Now since four-five years we have been focusing on export as well. We export to about 40 countries, which include USA, South America, Australia, Europe, China, Japan, Nepal etc. There is a great demand for incense sticks in foreign countries. The Indians living there buy it. They are also popular among the Hindu religious people in Malaysia and Indonesia. The Japanese and Chinese also use incense sticks for worship. Incense sticks are also used as a room freshener. That is why the trend of incense sticks and fragrance has increased.

What has been the role of the governments in the development of incense stick industry?

Governments have been very supportive of the agarbatti industry. VAT was not on incense sticks in many states and excise duty was never levied. When GST came, the government imposed 12 percent on incense sticks, but when the delegation of businessmen met with the government, the government understood and immediately revised it to 5 percent. Actually, the method adopted by the government regarding GST has been very good. Now 4 and a half years have passed since its implementation. For those working honestly, this tax system is very good Apart from this, in 2019, the Narendra Modi government put curbs on incense stick imports. This led to a further increase in employment. Incense stick industry has major women employment. We have more than 70 percent women working here. So the government has always been sympathetic towards this industry and the closure of imports helped the industry a lot.

What are your further expansion plans?

We have a wide range of products from MDPH group other than incense sticks but we are seeing good scope in confectionery. We have launched Sugar Boiled Candy under the name Din Din priced at Re 1 and we are getting good results. Its brand ambassador is children’s favorite cartoon Doraemon. We are slowly making our place in the confectionery market. There is competition, but without competition it is difficult to move ahead.

What is your CSR policy?

CSR is also included in the company’s policy. Women are being given employment on a large scale. Initially we started in our house garage. Me and my brother used to be young and we would come from school and fill incense sticks. The women who used to work back then are still with us. From youth till this day, even in old age, those women are with us. One of them being Mrs.Babita Jaiswal ji who is working with us from the beginning and now heads 3500-4000 workers. Not only this, there are other old employees as well like Mr. Jeevan Jayant ji, who looks after Logistics, Mr.Santosh Sharma ji, who looks after Factory Management. All of them have been with us since past 20-25 years and are like our assets, our family. We are progress relies on them.

What are the prospects for the growth of the incense sticks market?

Incense sticks and dhoop were originally used for worship and other religious functions. Even today 70 to 80 percent of consumers use it for religious purposes, but now the trend is changing. There is a growing trend of people using it as a room freshener in bedrooms and homes, offices or just because they like fragrance. It has started to become a part of lifestyle.  A new product called Backflow Cone  has hit the market. Unlike incense sticks, the smoke from it comes out down from its back. New inventions are necessity and this is what we are doing. It is only then will your product move ahead of the competition. Apart from this, constant change in packing, marketing and quality from time to time is another necessity.

What are the challenges before the agarbatti industry today?

Although it is not a big challenge, but there has been a shortage of good quality goods. Good quality and reasonable price of raw material like paper, wood and laminate is needed. Its availability on time is essential. Apart from this, no one wants another pandemic. This has caused a lot of problems. We learn things when we go out and meet people, but during corona pandemic, the meetings, the conferences, the exhibitions, everything was halted. Therefore, another pandemic would be a huge challenge.

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