BANGALORE, INDIA, November 6, 2011 (thehindubusinessline.com): Aromas from China and Thailand have started filling the Rs 4,000-crore (US$780 million) global incense stick market shaking the traditional Indian stronghold over the industry. Indian agarbatti makers, with an Rs 1,800 crore (US$350 million) turnover, offer heritage fragrances as their USP.
Chinese and Thai incense stick exporters, on the other hand, have started using innovation in packaging and design to win Western markets, which has spurred Indian agarbatti makers to follow suit. India exports close to Rs 350 crore (US$68 million) worth of incense sticks every year.
“The market, dominated by Indian players, is seeing competition from Chinese and Thai manufacturers who offer innovation in their packaging and distribution,” says Mr. Arjun Ranga, Managing Partner of Mysore-based N R Group, one of the oldest and largest manufacturers of agarbattis in the country. N R Group has thus launched Iris, an incense stick brand to suit the needs of the international customer.
Although the U.S. and Europe have traditionally been large markets for agarbatti exports, of late, the South American market has taken to incense sticks in a big way, points out Mr. Arjun. “Agarbattis have transformed from being religious products to spiritual products. Actually, it’s hip to light incense sticks in Brazil and Argentina now,” he says.