Tobacco to hotels major ITC, has signed a memorandum of understanding (MoU) with the government of Tripura and with Cane and Bamboo Technology Centre, Guwahati, for sourcing bamboo sticks from North-Eastern states.
V M Rajasekharan, head of agarbatti business, ITC, said, “We expect over 100 tonnes of raw material per month from North-East. We sell around 300 milion sticks per month now and post this understanding with North-East government, our volumes should double.”
ITC has also signed an MoU with Orissa Rural Development and Marketing Society (ORMAS) for sourcing incense sticks from the state. “We have started procuring around 50 tonnes a month from Orissa,” said Rajasekharan.
ITC’s agarbatti business expects a 50 per cent growth in 2009-2010, almost double of what it achieved last fiscal, on the back of more distribution reach.
“Agarbatti is a very fragmented business. The largest agarbatti players contribute only 25 per cent of the Rs 1800 crore agarbatti industry,” pointed out Rajasekharan.
ITC sells close to 20 variants of incense sticks under its ‘Mangaldeep’ brand. The company currently sources agarbattis from 14 small scale industries, providing employment for over 8,000 people directly or indirectly.
