Profitable Wood Products Business Investment Opportunity in Vapi, India

India is the largest manufacturer of agarbatti (incense sticks) in the world. The Indian agarbatti market size is approximately INR 12,000 crores, with exports worth around INR 2,000 crores to over 125 countries. However, the basic raw material required for making agarbatti—wood powder (special quality) —is mostly imported. Indian importers and buyers currently import 90% of the required wood powder from Vietnam and China.
We have over 7 years of experience in manufacturing wood powder in India. During these years, we have visited multiple states and held discussions with end users of import-quality wood powder to understand their quality requirements. Based on these insights, we revisited states in India where high-quality raw materials (wood waste) are available to manufacture import-quality wood powder domestically.
We also conducted a six-month pilot project for producing import-quality wood powder in India, which was highly successful. Our product was well appreciated by buyers.
Now, we are looking to scale up and manufacture large quantities of import-quality wood powder in India. This is why we are seeking new investment.
Indian importers currently bring in 7,500 to 9,000 metric tons of wood powder every month from China and Vietnam. As a local Indian manufacturer, we can potentially capture up to 90% of this market. We already have buyers in every region of India—North to South, East to West—and are in contact with over 30 buyers whose combined buying capacity exceeds 1,000 tons per month.
Additionally, the payment terms in this market are typically against delivery, which is another major advantage of this business.