Aromas from China and Thailand have started filling the Rs 4,000-crore global incense stick market shaking the traditional Indian stronghold over the industry. Indian agarbatti makers, with an Rs 1,800 crore 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 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.

Innovations

The Chinese, for instance, have brought in innovations such as prayer kits and aroma incense boxes that come with accessories. These sets, comprising two bags of incense sticks, four bags of incense cones, a candle and incense holders appeal to the Western consumer. Compared to this, the Indian pouch looked outdated. “As Chinese and Thai products are more attuned to international designs, we cannot afford to ignore the trends,” he says.

NR Group has thus launched Iris, an incense stick brand to suit the needs of the international customer. For instance, the incense stick sets come with African prints or the British checks or pastels, in keeping with the design trends of the year.

Bangalore-based Moksh Agarbattis too has brought in ‘better packaging and modern designs for the export market.' Mr K.K. Rao, General Manager, Moksh Agarbattis, says that it's only of late that the Chinese incense sticks are seen in the international market. “They are still the leaders in the raw stick market (sticks without incense), but we see some of them now offering fragrant sticks,” he says.

Although the US 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.

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