Comments
FMCG major ITC Ltd is experimenting with a variety of new fragrances for its agarbatti (incense stick) range under the ‘Mangaldeep’ brand.
According to VM Rajasekharan, CEO, SBU — Agarbatti & Matches Business, the company has also introduced new form factors include the Dhoop . Typically, Dhoop variants roll incense paste and Benzoin resin (also called Sambarani ) into cones, pyramids, or logs.
“We are working on various categories and new fragrances of ambience creation. All this will target mostly the puja market and will be through the Mangaldeep brand,” Rajasekharan told BusinessLine . At present, the Mangaldeep portfolio includes 40 stock keeping units covering 20-odd fragrances.
ITC does not give a separate turnover break-up for the agarbatti and matches vertical, but clubs it under the ‘FMCG — Others’ segment. This category reported a turnover of ₹7,626 crore for the first nine months (April to December) of this fiscal.
“We are growing close to 20 per cent year-on-year. The agarbatti segment has been profitable for us,” the CEO added.
The incense stick, agarbatti and allied offerings market in India is pegged at around ₹6,000 crore; with the organised sector accounting for 40 per cent (or ₹2,400 crore) share. ‘Mangaldeep’ and ‘Cycle’ (of the NR Group) arethe two major national players in the segment.
Tie-ups with templesRajasekharan said that the company has tied up with temples like Vaishno Devi for use of Mangaldeep incense sticks in ‘puja thalis’. Value packs for households are also being pushed.
As part of its larger branding strategy, there is also a ‘Mangaldeep’ mobile app ,which offers devotional content including bhajans and information on performing pujas.
ITC has a capacity to manufacture one billion sticks a month, mostly via 20-odd outsourced units (small-scale factories) across Tamil Nadu, Andhra Pradesh, Karnataka, Odisha, West Bengal, Chandigarh.
The company is also looking at import subsidisation by collaborating with governments and communities in Assam and Tripura for bamboo. The bamboo stems used in incense sticks are now imported from countries like Vietnam.
“In terms of cost or yields, imports are still a cheaper option. But we have taken up an import subsidisation programme to help small-scale businesses and different communities,” Rajasekharan said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.