Bengaluru-based Shalimar Incense has steadily carved a niche for itself in India’s highly competitive agarbatti market. With ambitions to maintain its growth trajectory, the company is now setting its sights on expanding its footprint to 40 countries.
Incense, whether in the form of sticks, cones, or dhoop cups, has long been an integral part of religious, spiritual, and aromatherapy rituals. Its ability to create a serene atmosphere with diverse fragrances has fueled global demand.
The Indian incense market, valued at around ₹10,000 crore, is expected to grow at a CAGR of 8% between 2024 and 2032, according to the IMARC Group. Dominated by legacy brands like Cycle Pure Agarbatti, Mangaldeep, and Zed Black, the market also includes a vast number of unorganized players. Among the prominent contenders is Shalimar Incense Pvt Ltd, a 40-year-old company founded by Vinod Shah.
Humble Beginnings
In 1976, Vinod Shah ventured into the incense business, branching out from his family’s textile enterprise. Initially, the journey was fraught with challenges, as the company operated at a loss for its first few years. However, Shah’s dedication to mastering the art of perfume-making and his focus on customer feedback laid a strong foundation. By 1982, Shalimar turned profitable.
Today, under the leadership of second-generation entrepreneur Alkesh Shah, the company has established a pan-India presence, with Eastern India being one of its strongest markets.
Quality as the Cornerstone
Shalimar’s success lies in its commitment to quality products at affordable prices. As consumer preferences have evolved from traditional floral scents to more perfume-like fragrances, the company has continuously innovated. Its extensive portfolio includes over 300 stock-keeping units (SKUs) under brands like Shalimar Retra, Shalimar Shubhakti, and Shalimar Kamal, with prices ranging from ₹35 to over ₹1,000.
The company’s best-selling product is its four-in-one incense pack, offering diverse fragrances at an affordable price. Recognizing the growing use of incense for aromatherapy and home fragrance, Shalimar introduced Oudh to its product line, which has become particularly popular in the Middle East.
Shalimar maintains its high standards by sourcing raw materials from across India and constantly experimenting with new scents to cater to varying regional preferences.
Strategic Shifts for Growth
In 2017-18, Shalimar pivoted from wholesale sales to a retail-focused approach, establishing stock points and sales teams. The company expanded its production operations beyond Karnataka, establishing units in Bihar and Andhra Pradesh.
This strategic shift has paid off, with Shalimar achieving over 15% annual growth since the change. The company employs approximately 450 people, with women making up 85% of the workforce in production units and 65% in other functions.
Overcoming Challenges in a Fragmented Market
The incense market in India is highly fragmented, with regional preferences playing a significant role. For example, fragrances popular in Assam may differ greatly from those in Maharashtra. Shalimar’s ability to stay attuned to customer preferences has been a key factor in its success.
The company has expanded its presence in international markets, including the Middle East, North Africa, Europe, and Southeast Asia, generating 20% of its revenues from exports. Shalimar also has a growing online presence through its website and platforms like Flipkart, Amazon, and BigBasket.
Future Plans
Shalimar aims to strengthen its reach in southern India while doubling its export destinations from 20 to 40 countries. Alkesh Shah emphasizes, “If you provide the right fragrance and have effective distribution, you will thrive.”
With its dedication to quality, innovation, and strategic growth, Shalimar Incense is poised to continue its legacy as a leading name in the incense industry.
