Incense major sets up new facility in Tamil Nadu

The company, which has strong ties in Tamil Nadu, is targeting a Y-o-Y growth exceeding the industry average of 6 per cent.

The agarbathi (incense sticks) industry in India is highly fragmented and worth anywhere between Rs 3,000-5000 crore. The organised industry comprises 50 per cent of that. By rough estimates, Cycle dominates about 20 per cent of this organised segment. 

Arjun Ranga, CEO, N Ranga Rao & Sons, says, “We are a Mysuru and Tamil Nadu based brand originally. While my grandfather N Ranga Rao started the agarbathi business in 1948 in Mysore, the first organised distribution for the products of our company started in 1972 from Chennai. Today, we have three big manufacturing clusters in Madurai, Dharmapuri, Chennai and near Puducherry.” 

On the company’s plans for the state, Arjun says, “Tamil Nadu has the biggest manufacturing capabilities as far as our brand is concerned, purely because of the logistics, connectivity and good quality of labour. Now, we have constructed our next big branch in Sriperumbudur. It has not yet been commissioned. It will be operational in six months. We also have two facilities in Gingee and Kiliyanur in Viluppuram district.”

He adds, “In terms of agarbathi, Tamil Nadu happens to be a very important market and we continue to make investments in manufacturing capabilities and distribution. In the next three years, we plan to double our footprint in the state. We have also launched kumkum, turmeric and other pooja- related products under the brand name Om Shanthi in the state and they are doing well.” 

One of its innovations under this brand is the Naivedya Sambrani – an instant dhoopam, minus the hassles of using charcoal to light the same. The firm has also introduced a one-and-a-half foot incense stick with four different fragrances in the same stick. 

The group has diversified business interests in areas like functional air care products (Lia brand of room fresheners and car-fresheners), wellness home fragrance products (Iris) under Ripple Fragrances, floral extracts (Nesso) and Rangsons Avionics. 

Nesso, which makes essentials oils and herbal extracts, has three factories – in Mysuru, Madurai and Coimbatore. 

Arjun informs that the company is among the world’s largest producers of jasmine and tuberose extracts and it supplies to all the major perfume companies in France. 

Arjun says, “In the lifestyle segment, we have introduced a range of home fragrances under the brand Iris. We have opened a company boutique in a popular mall in Velachery and it has seen a very encouraging response.” 

The firm is planning an aggressive launch in North India, post the implementation of the GST. The company has also banked upon Amitabh Bachchan for being its brand ambassador. Talking about the hurdles faced by the industry, Arjun says, “There are no entry barriers for anyone to start an agarbathi company, as it is a handicraft product. So, educating the public about opting for quality and eco-friendly products is one of the challenges we face.”