GR-Exclusive: Agarbatti Manufacturers Going Big On Eco-Friendly Practices: November Expo 2025 In Focus

The All India Agarbathi Manufacturers Association (AIAMA) held a press conference on July 18 in Bengaluru to talk about the future plans and the current status of India's incense stick industry. Ahead of the highly anticipated AIAMA Expo 2025, which is scheduled for November, office bearers of the association focused on the main agenda, i.e., industry evolution towards adopting new technology.

Speaking to GoodReturns, the AIAMA leadership, including President Ambica Ramanjaneyulu, Expo Chairperson and former AIAMA President Arjun Ranga, Vice President Krishna T. V., and Past Presidents Sharath Babu P.S. and Sapthagiri S. Boggaram, talked about major industry achievements, the ongoing challenges, and sustainability efforts that are being put forward by the association.

Booming Sector with Global Reach

The Indian agarbatti sector is currently valued at over Rs. 8,000 crore at the retail level and has a strong demand both domestically and internationally. Incense sticks in India are associated with culture and have got around 82% household penetration in India alone.

The demand for prayer products, especially agarbatti, has seen a sharp increase in the last five years in India and across the globe, according to a study done by the association.

"On the export level, India ships agarbatti to over 125 countries across five continents, including the U.S., UAE, and Nigeria. The export numbers currently are around Rs. 1,000 crore, and we are expecting more growth potential in the next 10 years." Arjun Ranga, past president of AIAMA & MD of Cycle Pure Agarbatthi, stated.

Tech Transformation in the Agarbatti Industry

Even though this sector has traditional roots, the industry has adopted automation and technology since the 1970s.
"Today, even housewives are producing 50 kg of incense sticks daily using automated machines," said Ambica Ramanjaneyulu, president of AIAMA & director of Ambica Pure Agabathies.

The main focus currently is on educating manufacturers on AI integration and automation, which will help them to scale up their businesses and also improve quality standards.

Focus On Sustainability

When asked about the increasing pressure on adapting eco-friendly practices and reducing carbon footprints, AIAMA clarified that the agarbatti industry's core raw material, bamboo, is sourced through wild harvesting, which is a relatively low-impact method.

"The manufacturing process is quite sustainable, and the industry is not harming the environment as a whole," said Arjun Ranga.
"Having said that, the association is also actively exploring alternative eco-friendly materials to further reduce dependency on imported bamboo and reduce its carbon footprint." He further stated.

Major Challenges Faced by the Agarbatti Industry

Despite having good growth numbers, the agarbatti sector is dealing with multiple challenges.

While India is a top global producer, it still imports bamboo from China, Laos, and Vietnam due to domestic shortages, which increases the input costs and supply chain risks.

"Apart from the raw material issue, sudden changes in import duties and export regulations from the govt also impact the cost structures." Arjun Ranga said

"The newer players entering the market with their innovative and sustainable agarbatti products are challenging traditional manufacturing methods, which is creating a negative public image for older, legacy brands that have been part of India's incense industry for a long time," he further stated.

Upcoming AIAMA Expo 2025: What to Expect

The focus of the press meet was mainly on the upcoming AIAMA EXPO 2025, which is scheduled from November 6th to 8th, 2025, at Tripura Vasini, Palace Grounds, Bengaluru. The AIAMA Expo will host over 250 exhibitors and attract an expected 6,000 to 8,000 visitors from across India and abroad. The theme for this year's event is "Traditionally Modern."

A major announcement that is expected at the EXPO is the introduction of BIS (Bureau of Indian Standards) certification for agarbatti, which will bring standardised quality across the industry.

The expo will be supported by other major industry bodies, including the Fragrance and Flavours Association of India (FAFAI), Mumbai; the Fragrance and Flavour Development Centre (FFDC), Kannauj; the Essential Oils Association of India (EOAI); and others. Exhibitors from countries such as Vietnam, Indonesia, and several European nations are also expected to participate in the event.

About AIAMA

Established in 1949, AIAMA is the apex body that works towards the development of the agarbatti industry. With over 800 active members hailing from all over India, AIAMA helps the industry act with solidarity in all matters regarding the future of the industry. MOMA was transformed into the All India Agarbathi Manufacturers' Association during the year 1980 to reflect its growing national character. AIAMA has since grown in strength, and the present membership spread all over India is around 600.