Cycle Pure Agarbathies aims to double its distribution network

Mysuru-based Rs 1,000-crore NR Group’s incense stick manufacturer Cycle Pure Agarbathies aims to double its distribution network in the next two years.

“We are the largest agarbathi brand in terms of sales. A C Nielsen puts our reach at 10 lakh retail outlets. We have about 1,800 people in sales and close to 4,000 distributors. However, to penetrate North India, we are planning to double our distribution network in the next two years,” Cycle Pure Agarbathies Managing Director Arjun Ranga told DH.

The company aims to enter North India where local players are dominating in a big way. “We are very weak in Madhya Pradesh, West Bengal, Gujarat and Rajasthan. We are investing in distribution reach more in North India, and are significantly better in Uttar Pradesh, Punjab, Haryana and Delhi,” Ranga said.

The company has manufacturing units in 36 locations with a capacity of over 10 billion incense sticks annually. Mysuru is the biggest cluster followed by Madurai, employing 3,000 (direct) and over 20,000 (indirect) staff.

“In 2015, our production capacity was nine billion. We are adding one billion sticks every year. As it is labour-intensive, the production can be scaled to any level,” Ranga added. The company, which embarked its journey 1948, enjoys 35% market share in the organised segment and is also the biggest exporter of agarbathies from India, A C Nielsen reported.

When asked about exports, Ranga said, “Sri Lanka was the first export market for us. Today, we are available in 65 countries. Countries like Colombia, Peru and Brazil are large agarbathi-consuming markets. Exports contribute 10% of our total revenues.”