 "GST to encourage local production of incense sticks")
"We are eagerly waiting for GST to be in place. This will help us in promoting local production. Currently to get excise benefit we cannot move the fragrances out of the place of production. But with GST in place it can be done," world's leading incense stick maker Cycle Agarbathi director Arjun Ranga told PTI.
At present, the company gets the incense sticks from low manufacturing bases like Odhisa and Bihar and get these transported to Mysore factory for mixing the frangrance.
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"Transporting the sticks to our Mysore plant from locations like Bihar and Odhisa to put fragrance on the incense sticks and then distribute involves hassels, time and cost.
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"Once GST is in place, we will have complete manufacturing in several locations," Ranga said. The impact for Cycle Agrarbathi will be 3-4 per cent in net margin, company officials said.
India is largest incense stick maker and currently the export market for the sector is about Rs 450 crore.
The export sector is growing at 15-20 per cent as demand is growing in a few Latin American countries, officials said adding the domestic demand is expanding at the rate of 3-4 per cent.
The incense stick industry size is pegged at Rs 5,000 crore of which organised players account for about 50 per cent.
Cigarette to FMCG major ITC Ltd had also forayed into incense stick market.On its growth plans, Ranga said high quality products and exquisite fragrances would help expand the market presence substantially.
At present, cycle brand occupies 10 per cent of the around Rs 250 crore agarbathi market in Odisha and aims to double the company's market share in the state in the next two years, he said.
The country-wide incense stick market is around 2,000 crore of which Cycle Pure brand forms about 20 per cent and the plan is to expand it substantially, he said adding the company exports to 65 countries with Brazil and South Africa being some of its new markets.
However, the sector is characterised by unorganised players who offer low quality products at cheap prices, Ranga said adding Cycle Pure Agarbathies through its innovations and strict quality adherences had been instrumental in bringing the sector into the organised fold.
Cycle Pure also launched its new range of Lia Agarbathies. Created and blended in-house, the collection comes in 6 different fragrances — Lia Crème, Lia Lavenderz, Lia Citric tango, Lia Lilium, LiaFloress and Lia Applee.
Ranga said the company constantly strives to ensure utmost customer satisfaction by offering them a wide range of choice with high quality products and exquisite fragrances.
"Increasing our presence across the length and breadth of the state will help us to not only consolidate but expand our market presence further," he said.
On the association with Amitabh Bachchan as the brand ambassador, Ranga said, "We are confident the campaign with him as the face of the brand will not only strike a chord with the consumer, it will occupy a space in the consumer’s heart as well."