Agarbattis adding fragrance to the Cycle of Life

A simple association with a cycle has helped the Mysore-based NR Group, maker of Cycle Agarbattis, traverse many bylanes of the country and abroad.

When founder N Ranga Rao decided to manufacture agarbattis in the heritage city of Mysore in 1948, the branding of the incense stick was a key challenge. Today, Cycle makes over 8 billion sticks a year, across its 20 facilities.

“Cycle means the same thing in every language. The word conjures up an image of a sturdy aid, which helps to get from one point to the other. Similarly, prayers are taken to their destination,” said Arjun Ranga, Partner of ₹1,000-crore NR Group.

The philosophical connotation of the brand denotes the cycle of life, from the cradle to the grave. “My grandfather, N Ranga Rao, decided on the name Cycle. He wanted an affordable brand that could be present in every household, and of use in the different stages of life,” said Ranga, in a telephone interaction.

Home-grown enterprise Speaking to Business Line about the growth of the company, from a fledgling home-grown enterprise to a business conglomerate, Ranga said: “I was born into the business, and at an early age used to travel in the van conducting sales across Kerala. Every summer vacation was an exercise in learning how to smell fragrances. Every dining table discussion was about scents and aromas.”

His grandfather, whom he called ‘Factory Appa’, passed away in 1980.

Reminiscing about his grandfather who taught him “all that was to know about the business”, and in a telephone interaction the Managing Partner said: “I never called him Thatha. I called him Factory Appa and my grandmother was Factory Amma, since they were in the factory at all times and rarely home. He passed away in 1980. “The company has been built from the ground up. My dad, RN Murthy, joined in 1960 and still sits on the advisory board.”

The NR Group is currently managed by the third generation of the Ranga Rao family. Arjun Ranga has an engineering degree from SJCE, Mysore, and an MBA from Thunderbird, US. He also worked at a chemical market research firm CMR Inc, US, before returning to India to join the family business.

“Engineering is process-oriented. As a chemical engineer, I have repeatedly been asked how my education adds value to making agarbattis. In order to sell a Cycle, however, one needs a PhD,” said Ranga. “Fragrance is an art and science. One can’t learn how to create fragrances in a school. A jasmine agarbatti has to have 60 to 70 fragrances. An engineer with an analytical mind can understand the difference. We create 30 to 40 brands, and have to ensure fragrances that inspire,” he added.

Stating that the firm was built on quality, Ranga said: “Selling soap or a toothpaste is very functional. One can't give value to that, but when one prays, it has immense value.''

Market dynamics He added that Choosing the right cycle was paramount to the journey one intends to take, he added. “Whether it is a mother praying for a healthy newborn, or a man praying to get a job, or even a child praying to score good marks, the brand hsas to ensure faith, and the circle of life continues.” said Ranga.

Ranga managed a variety of assignments before taking over the reins of Cycle Pure Agarbattis in 2005. “Just because it’s a family-run business, the baton was not handed over easily. I was first asked to take care of Manmohak, a specialised agarbatti product and sell it across Tamil Nadu. I was asked to travel to the North East and Maharashtra. The market dynamics are very different in both States. I learnt a lot in the field, travelling and learning and reporting into the Vice-President Marketing.”

It was only in 2006 that Ranga was tasked to take on more responsibility at the workplace.

Exports Ranga has sustained NR Group’s market leadership by exercising innovative marketing strategies. The brand is now exported to at least 65 countries.

“South America, Argentina, Peru and Brazil are big markets. South America prefers more exotic flavours like coffee and chocolate in their incense sticks, where Pachauli, Jasmine and Sandalwood are universal fragrances. Our Yagna brand is very popular in France,” added Ranga.

For him Ranga, the global arena would power the next stage of growth. “The domestic agarbatti market is very nascent, whereas the global market for home fragrances is $2 billion.”

NR Group has a library of over 500 fragrances, all created and blended in-house. “One of the biggest strengths of the Group is our in-house fragrance capability. I am an apprentice perfumer and learnt it from my father. We are a family of perfumers, due to which we are able to deliver consistent quality. Most rival companies tend to buy their fragrances from a third party, which could dilute the end product, said Ranga.

Stating that the company would continue to be innovative with newer fragrances, Ranga said the overarching aim is was to provide value for money to the consumer. “The right fragrance has to create the right ambience. That is our sole aim.” he said.

COMMENT NOW