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Agarbatti making business can be initiated as small scale or large scale basis. Agarbatti is considered as household goods having a great market potential. The burning of agarbatti or incense in religious and social functions has been practiced in India since early times. Agarbatti an aromatic powder or paste is burnt in Indian homes as a fragrant fumigant and is reputed to possess insecticidal and antiseptic properties. The burning time of an agarbatti varies from 15 minutes to 3 hours according to quality and size.

Agarbattis are used by all communities in India, Sri Lanka, Burma and by Indians residing abroad. As on today about 90 foreign countries are using agarbattis. The demand of Incense Stick is found all throughout the year and it increases on festive seasons. Agarbatti Industry is one of the labour intensive cottage type of traditional industries in India and Karnataka State leads in this industry, the main centers of manufacture being Mysore and Bangalore. Moreover, it is an export-oriented industry also. In fact, this is one the items considered for boosting exports. Owing to the low level of technology involved in this industry, agarbatti making business can be initiated with simple machinery and moderate capital investment.