Incense Stick From Flower Waste

Business plan
On
Incense stick from floral waste
Submitted by:
Twinkle Pansar
5121
twinklepansar@gmail.com
9586478073
Janvi Prajapati
5135
Janvi75311@gmail.com
8401237116

Submitted
To
Dr. Shamina Ansari
K.S.School of Business Management,
Gujarat University
Ahmedabad-380009

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1. Selection of product
 Our product name is Incense stick from the floral waste i.e. eco-
friendly.
2. How it is new and different from others?
 As in incense stick usually raw material is wood and charcoal while
in our product we use natural raw material i.e. floral waste, least use
of wood and no use of charcoal at all.
3. Reason for the newness
 In our product basic raw material is floral waste which is eco-friendly
and same time we are doing waste management as these flowers were
thrown in to river or landfills so for this reasons our product is having
newness.
4. Feasibility of the product
 As people are getting more aware about eco-friendly products there is
high scope of our product to be sustain in the market
 As it is organic, it helping individual to use chemical free product and
through waste management environment is also benefited.

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ACKNOWLEDGEMENT
We have taken efforts in preparing this business plan. However, it would
not have been possible without the kind support and help of many
individuals. I would like to extend my sincere thanks to all of them.

I am highly indebted to Dr. Shamina Ansari, professor in-charge for this

business plan, for her guidance and constant supervision as well as for
providing necessary information regarding the project and helping us
break the nutshell and face the practicalities of real world.

We would like to express our gratitude towards parents & members of

K.S School of Business Management for their kind co-operation and
encouragement which helped us in completion of this business plan.

My thanks and an appreciation is also for our colleagues who

contributed in developing the plan and willingly be a part of this venture.

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TABLE OF CONTENT
No. Particulars Page No.
1. Introduction 5
2. Business Opportunity 7
3. Identify business opportunity 7
4. Plan and Conceptualize
A. Amount of capital 8
B. Selection of location 8
C. Machinery and means of production 9
D. Market availability 11
E. Selection of best business concept 13
F. Analysis of opportunity and selection of 13
project
5. Sources of Ideas 15
6. Step in Idea processing and selection
A. Technical feasibility 16
B. Commercial feasibility 22
C. Marketing feasibility 23
D. Human resource feasibility 26
E. Financial feasibility 27
7. Establishment of Enterprise 33
8. Limitation 33
9. Suggestion 33
10. Conclusion 34

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Introduction

 India is home to approximately 23, 98,650 places of worship, most

of which generate religious waste, i.e. decomposed flowers. The
countries multicrore rupee religion industry generates a whopping
80, 00,000 tonnes of floral waste every year.

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 Flowers begin their journey as sacred offering to deities in the

countless temple and mosques of India, but sadly find their way to
rivers and water bodies, polluting them and wreaking havoc on the
delicate aquatic ecosystem.
 As per the traditional incense manufacturing it comes with cutting
of lots of wood as it is only raw material for incenses ,it is also
using charcoals for burning effect ultimately it is harming the
environment so with floral waste of temple helping in finding out
sustainable and eco-friendly alternative for the same.

 Our products are handcrafted by our women flowercyclers,

providing them a healthy livelihood and better future to grow.
 As it is made from natural raw material it is not harming the health
of an individual , it is made from floral waste which is helping in
not polluting our water bodies and providing waste management
,we including women workers which help their own growth and
better living conditions.

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BUSINESS OPPORTUNITIES
 The increased demand of eco-friendly products lead to prospects of
growth in this market. As there is high demand for this type of
products which concern about sustainable solution to the
monumental temple-waste problems, recycling floral waste which
otherwise throws in to water bodies, and proper waste management
having high growth opportunity in the market.
 Here this concept is related with eco-friendly product that made up
with least chemical based product that not only helps customer
regarding smoke of incense sticks but also environment by the way
of waste management.
 It is a very innovative and upcoming niche segment in the industry
as product is made from floral waste, and handcrafted by women
workers.
 To define the market conditions in the year, we have conducted in-
depth analysis of the impact of market drivers, challenges, and
trends featuring data on product segmentations, vendor shares,
growth rate by revenue, and an evaluation of the different buying
criteria in the order of importance.

IDENTIFY BUSINESS OPPORTUNITY

 As there is mass cutting of trees from forest which causing high
environmental problems so new sustainable alternative must be
found out and floral waste incense stick is perfect fit for the same.
 As this concept is new and unique, there are only few players right
now but there is possibility of new rivals to be entered in this area.
 As people should prefer environmental friendly incense sticks
which is convenient to them. They must give positive response
regarding such type of products.

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 There will be increase in distribution channel so that we get more

number of users of eco-friendly product an incense stick across the
India. Improvement in case of updating new technology for better
performance of it.
 Pan India stores outlets which will be beneficial to all people.
Maximum efforts will be done for providing incense sticks through
online as well as offline also.

PLAN AND CONCEPTUALIZATION

A. AMOUNT OF CAPITAL

Sr. No Particulars Amount(Rs.)

1 18,00,000
Partners’ capital

Twinkle= 9,00,000

Janvi=9,00,000

B. SELECTION OF LOCATION

 A business will have to consider many factors when determining

where to locate a new branch or operation. Usually, it will have to
balance several factors in making a decision.
 It may choose a site with the cheapest land or buildings.
 It might decide on a location that is convenient for key employees.

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 A business needs to be able to recruit staff with the right skills

base. It might choose a site that has easy access to raw materials.
For example, many frozen food factories are located near fishing
ports to reduce transport time taken and to keep fish fresh.
 The key factor could be the transport and service infrastructure.
Many businesses require easy access to good road and railway
links and modern telecommunication services. These ensure that
they can meet service or delivery deadlines.
 Based on the above factor we locate our industry Narol gam,
Ahmedabad.

C. MACHINERY AND MEANS OF PRODUCTION

 MACHINERY
1) Pulveriser machine : Rs 17,500 (1 unit)

Depreciation rate= 5%

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2) Digital weight machine : Rs 3,000 ( 2 machines)

3) Packaging machine : Rs 14,000 (1 machine)

 Land
Land on rent Rs. 15,000 per month (yearly Rs. 1, 80,000)

 Labour
Women workers 10 women monthly salary Rs. 8,000
Sales manager 3 manager monthly salary Rs. 15,000
Accountant 1 accountant monthly salary Rs. 9,500

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D. Market availability:
 Raw material
1) Floral waste

2) Wooden powder

3) Essential oil

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4) Resin/gum

5) Wooden stick

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E. SELECATION OF BEST BUSINESS CONCEPT

 The present situation of incense industry in India there is not

much adoption of eco-friendly approaches. Presently most of
these companies in the market are using wood directly cutting
from forest area and immense use of coal leads to health issue
of an individual and ultimately harm to environment.
 We selected this option as it is new concept, helping needy
women, helping environment, helping nation to grow.
 No license
 No registration
 No pollution

F. SWOT ANALYSIS

Strength
 Low cost
 Eco-friendly
 Simpler mechanism
 Uniqueness
 Reduce air pollution
Weakness
 More technology needed
 More Research and Development required
 Lack of standards
 Manual working process

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Opportunity

 Easy to adopt
 Compatible with urban life style
 Advances of waste management
 Government subsidy for ownership
 Lower taxes
Threats
 New public policy
 Lack of awareness in users
 User perception

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SOURCES OF IDEA
 India is a country which is full of diverse, rich culture and
traditions which is flowing from many years. An essential part of
the holy ritual is the burning of incense sticks which is addressed
as agarbatti. We are quite unaware of the fact that the smoke
released by these can pose some health risks, according to a study
conducted by the scientists in South China University of
Technology.

 Pollutants released by the smoke of incense sticks can sometimes

cause inflammation in the tubes that are responsible for passing air
to lungs. Content of sulphur dioxide, carbon monoxide and oxides
of nitrogen can lead to chronic diseases like asthma and chronic
obstructive pulmonary disease.

 In addition to this, rotting flowers may also cause

pollution problems on land and now it also become the big
challenge for the temples to deal with huge floral waste,to deal
with such problem, the eco-friendly or organic incense helps in
reducing pollution in the air and also become very useful tool for
the temple waste management.

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STEPS IN IDEA PROCESSING AND SELECTION

A. TECHNICAL FEASIBILITY
 It is the study of the project in terms of input, process, and output.
It is a very effective tool for long term planning and problem
solving.
LOCATION ANALYSIS:
 The selection of location plays a very important role for the
growth. We have decided to establish our factory building in Narol
gam, Ahmadabad

 Factory address:31/K, Near Reliance petrol pump,

Narol gam,
Ahmadabad 382405

Reason for selecting the site

1) Easy availability of land and building at reasonable rates.
2) Easily accessible location.
3) Easy availability of raw materials and amenities like electricity and
water.
4) Easy availability of labour.

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Procurement of raw material

1) Floral waste= free of cost
2) Wooden powder = 15 Rs/ k.g
3) Resin / Gum = 200 Rs/litter
4) Essential oil = 250 Rs/10 ml
5) Wooden stick =80 Rs/200 sticks bunch

STEPS FOR ORGANIC INCENSE MAKING

 The procedure of agarbatti making is very simple and can be done
using machines. If you don’t want to invest in purchasing
machines then you can go for manual handmade agarbatti
production unit but machines makes it easier and produces high
quality agarbatti in short time.

STEP 1: Collect the floral waste from temples, mosques, river bank etc.

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STEP 2: Crush the flowers in pulverize machine.

STEP 3: Add wooden powder, resin/ gum in floral crush and mix

properly.

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STEP 4: Then add essential oil as your choice.

STEP 5: Add water to get appropriate consistency.

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STEP 6: Make dough.

STEP 7: Rotate the dough around the wooden stick.

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STEP 8: Sprinkle the stick around the powder

STEP 9: Let the incense stick dry in cool and dark place for a week.

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STEP 10: Packaging

B. COMMERCIAL FEASIBILITY

 It could be defined as business idea, product or service you would

to deliver to the market. In India, a wide variety of agarbatti are
available at in different shapes, colours and fragrances at very
competitive price and now it also available eco-friendly incense
stick which is charcoal free.
 This involves,

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1) Product: The incense which is made from floral waste is organic and
eco-friendly that not harm to environment also not hazardous for human
health.

2) Market: Target market will be religious people and religious

ceremonies .Our target market will be Ahmedabad.

3) Resources: There are requirements of labors, sales manager,

accountant; etc. Finance will be managed through partners’ capital only.

4) Finance: Cost of project is defined before starting the business so we

can get idea about managing fund.

C. MARKETING FEASIBILITY

The potential market size has been determined by analysing the probable
benefit to a prospective customer. The target market is designed taking
into account the features of the target market e.g. income, social status,
gender, age, special needs, geographical location etc. Today Marketing
is very important aspects in any business or organization. No one will
think to go without marketing on the field because it is evident that a
firm that has developed Marketing plan.

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4 P’S OF MARKETING:

1. Product name: Organic incense stick

5 levels of Product:

(a) Core benefit: Organic incense stick not contains charcoal that is

harmful for the environment and for human health.

(b) Basic Product: Organic/ Eco friendly incense stick

(c) Expected product: Charcoal free incense stick that reduce

carbon emission in the air.

(d) Augmented Product: It also used in aromatherapy, meditation

and ceremony.

(e) Potential product: Use more eco-friendly raw materials.

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2. Price

 Cost-plus price strategy: Pricing of a product depends on a lot of

different variables and hence it is constantly updated. Major
consideration in pricing is the costing of the product, the
advertising and marketing expenses, any price fluctuations in the
market, distribution costs etc.
 To reduce the price of the product we are hearth procedure for
melting a metal. In this competitive market prices are main
element to get the benefit from the market to earn the profit. .
Prices are depending upon the prices of the raw material and the
competitive market scenario.

3. Place: 31/K, Near Reliance petrol pump,

Narol gam,
Ahmadabad 382405
Reasons for choosing such place:
1) Easy availability of land and building at reasonable rates.
2) Easily accessible location.
3) Easy availability of raw materials and amenities like electricity and
water.
4) Easy availability of labour

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4. Promotion

Advertising: Targeted advertising through various media will help to

increase sales. (E.g. digital media, radio)

D. HUMAN RESOURCE FEASIBILITY

 Human resource can be considered as the heart of an organisation.

As they are only living organism in the organisation through them
only the goal of an organisation can be easily achieved.
 Women workers 10 women monthly salary Rs. 8,000
 Sales manager 3 manager monthly salary Rs. 15,000
 Accountant 1 accountant monthly salary Rs. 9,500

Organization structure

Production Marketing Finance

manager manager manager
• Labour • Sales • Accountant
manager

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E. Financial feasibly

 From 1 kg dough we can make 900 organic incense sticks of 9

inches and 18 boxes.
 From 10 kg dough we making 9, 000 organic incense sticks
daily i.e. 180 boxes.
 From 250 kg dough we making 2, 25,000 organic incense sticks
monthly i.e. 4500 boxes.
 From 3000 kg dough we making 27, 00, 000 organic incense
sticks yearly i.e. 54000 boxes.
 1 box = 50 sticks, in this way in a year we will produce 54,000
boxes.
 Total working Days in month = 25 days
 Cost per box= 41 Rs.
 Selling price per box= 80 Rs.

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Cost of Raw material used (in year) (in Rs.)

Particular Monthly (in Rs.) Yearly (in Rs.)

0 0

Floral waste

3750 45,000
Wooden powder

12500 1,50,000
Essential oil

5000 60,000
Resin/Gum

90, 000 10,80,000

Wooden stick

1,11,250 13,35,000
Total

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A Statement Showing Cost of Project

Sr. No Particular Amount (Rs)

1 Cash on hand 7,00,000
2 Building rent 1,80,000
3 Machinery 37,500
4 Furniture 20,000
5 Preliminary expenses 1,55,000

6 Miscellaneous expenses 16,000

7 Working capital 2,00,000

Total 13,08,500

Mean of finance
Sr. No Particulars Amount(Rs.)
1 18,00,000
Paternes capital

Twinkle= 9,00,000

Janvi=9,00,000

Total 18,00,000

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Trading Account for the year ended 2020-21

Particular Amount Particular Amount

------- Sales
Opening stock 42,96,000

Closing stock 19,200

Purchase of raw 13,35,000
material

material Loss during 1,488

production
Gross profit 29,78,712
43,15,200 43,15,200

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Profit and loss Account for the year ended 2020-21

Particular Amount Particular Amount

Salary 16,14,000 Gross profit 29,78,712

 Workers
salary=9,60,000
 Sales manager salary=
5,40,000
 Accountant salary=
1,14,000

Transportation cost 21,600 Discount received 7,000

Depreciation on machine 1,875
Rent on building 1,80,000
Selling and distribution 72,000
overhead
Miscellaneous expense 16,000
Electricity bill expense 60,000
Depreciation on furniture 1,000
Advertisement expense 1,12,000
Water charges 6,000
Printing expense 54,000
Packaging material 1,35,000
Net profit 7,12,237
29,85,712 29,85,712

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Balance sheet on the 31 March, 2021

Liability Amount Asset Amount

Net profit: 7,12,237
Paternes capital 18,00,000 Furniture 20, 000 19,000

Twinkle= 9,00,000 -Depreciation@5% 1000

Janvi=9,00,000

Creditors 2,00,000 Machine 37,500 35,625

-Depreciation@5% 1875

Closing stock 19,200

Preliminary expense 1,55,000
Debtors 1,58,938
Cash on hand 7,00,000
Working capital 2,00,000
20,00,000 20,00,000

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Establishment of Enterprise
 Vision: To become a company that provides individual well-being
and development of society as whole through eco-friendly
products.
 Mission: To make cost effective, reliable and advantageous to all
stakeholders and to become more customized brand with eco-
friendly product in India.

Limitation
 Lack of awareness about organic incense stick.
 Different consumer buying behaviour.
 Need for more research and development.

Suggestion
 There is a need to bring more awareness of various other
advantages of incense stick to a consumer mind.
 There needs to be use of more technology and need of open new
plants in other cities also.
 There is a requirement of concerning government policies.

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Conclusion
We would finally like to conclude the project with a great feeling
of having gained enormous knowledge about the incense stick.
First of all we are thankful to our faculty members who gave us
such a wonderful opportunity to learn about the practical aspects of
knowledge.

By conducting an extensive research on all the aspects of

establishing a manufacturing plant of incense stick. We saw all the
marketing factors and were able to understand more about it
because of seeing them practically.

It has been said that practical knowledge is more important than

theoretical knowledge. Whatever we learnt from market research
will definitely help in enhancing our academic career and come up
as an efficient manager.

Webography:
https://phool.co/
https://justlearning.in/
https://blog.aboutamazon.in/
https://www.thenewsminute.com/

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