18-05-2025
- Business
- New Indian Express
'We are seeing quick commerce as a good opportunity'
Cycle Pure Agarbathi, the flagship brand of Mysuru-based 77-year-old NR Group, is the biggest player in the incense stick market, which is estimated to be around Rs 8,000-10,000 crore. Its annual revenue, according to Tracxn, stood at Rs 1,150 crore in FY24. In an interaction with Uma Kannan, Cycle Pure Agarbathi MD and Managing Partner NR Group, Arjun Ranga, who is the third-generation entrepreneur, said digital presence is now extremely important and that prayer as an opportunity is bigger in digital and ecommerce. Edited excerpts:
Post-Covid, is there any change in the Agarbatti industry in terms of market and new players?
From about 2019 onwards, there has been a huge influx of new manufacturers, and unorganised players coming to the industry. Especially during Covid, when people were talking about the benefits of using Agarbatti and keeping the fragrance at home. There has been a sudden increase in unbranded players entering the market. There is an oversupply because of that right now. However, the increase in population and consumption have helped the growth. The increase in the number of temples, rising number of pujas and rituals and the increase of religious tourism have also contributed to the growth of the industry. We have also created exotic combinations of fragrances targeting some specific geographical regions, festivals and giving the customers their taste of preference under various brands, which has further helped in boosting the growth.
As an organised sector player, how do you see the proliferation of many unorganised players in the space?
We are the biggest player in the market as an organised brand. In the AC Nielsen's report, the market is estimated to be Rs 8000 crore, which also includes unorganised players. It is estimated that the market is about 60-70% organised and the rest of it is unorganised. In this dynamic, our market share is about 20% of the whole organised share. The Agarabatti industry has made representation to the government about proliferation of unorganised players, and the government has suggested the best way is to go for an Indian standard. We are working with the Bureau of Indian Standards to come up with the Agarbatti standard. We are working closely with BIS to launch it. It should be done in the next three months.
Do you have any plans to increase digital sales?
With increase in information and accessibility for customers, we saw a shift in the consumption pattern of consumers, where unlike the older times the first access point is not the temples. Today for consumers, point of sale becomes a priority. Today, a lot of customer discovery is happening online and digitally through either social media or the portals. Digital presence today is extremely important for customers to understand your product, understand your brand, and tell your brand story. Our discovery process has increased dramatically. If we were 5% on digital 10 years ago, today we are 50% on digital in terms of communication.
Do you think there is a growth opportunity in the e-commerce space?
Agarbatti has typically been a purchase item, when stock is finished. Quick commerce is showing promise, because Agarbatti is an impulse purchase. And the unit packs are small -- Rs 100 a month is enough for you to light Agarbatti for the whole month. We are seeing quick commerce as a good opportunity. E-commerce is the new big thing. Agarbatti is not a category, but a discovery. Services have increased the opportunity for us, and we have got into astro services. That is leading into puja. So, prayer as an opportunity is bigger in digital and e-commerce. I see the next 5 years as a huge opportunity for us as well as the company in that space. We have a brand called and we see that as a big opportunity going forward.
What is the long-term vision of the group?
We are all a purpose-led brand. We believe in delivering hope. The long-term vision of the company is whenever anybody thinks of prayer or God, we need to be present either as a product or a service within an arm's reach.
