A brief report on Anuppur Agarbatti Cluster

The promotion of Anuppur Agarbatti Cluster was initiated as a result of strategic framework for development of growth oriented micro enterprises in Phase –II of the project. The framework outlined that promotion of product centric clusters may provide stimulus to growth of micro enterprises (MEs) having potential to grow as niche products would be integrated to national market. It would also ensure increased earning to the target group.

Before launch of a Phase – II, 10 product centric clusters were identified in the project districts. This cluster was selected as in phase –I, certain efforts were made for training of women for making raw Agarbatti but activities could not be scaled up and success was marginal.

Based upon experiences of Phase – I, in the first stage a detailed business plan was got prepared for promotion of this cluster. This business plan also outlined implementation structure and identification of agencies who would be drivers of the cluster and will take care, especially, of marketing of products and provision of training. Taking lessons from Phase – I, a dedicated cluster team of 3 persons was put in place whose sole mandate was promotion of this cluster.

This initiative was started in September 2008. The objective of this initiative is that by end of October 2009 , 2000 women would be making raw Agarbatti and being a supplementary source of livelihoods would be earning about Rs 1200 per month.

Upkar Manav Kalyan Sansthan (UMKS) and M/S N.Ranga Rao & Sons, Ltd, Mysore (NRR) are project partners. UMKS is providing training and responsible for providing raw material to women, procurement of finished products and ensuring payment of rolling charges to women. NRR is biggest manufacturers of Agarbatti in India and providing training free of cost. Their interest is that if activities are scaled up, it would be one of their resourcing centre for raw Agarbatti. Necessary agreement etc have already been signed with UMKS for fulfilling the obligations outlined above, Arrangements with NRR are informal but being implemented as his trainers are frequently coming and providing training to women identified by cluster team. It is envisaged that UMKS will enter into business relationship with NRR for supply of raw Agarbatti to them. NRR team has visited the project site and discussions had taken place between both the agencies. This arrangement will give further fillip to growth of the cluster and stability of operations.

To date about 640 women have started making raw Agarbatti and 1000 quintles of raw Agarbatti has been purchased and payment to the tune of Rs 1,15,000/- has been made to women. Arrangements are in place that women get payment for rolling charges immediately after finished products are purchased by the agency.

In order to increase the role of women in value chain for ensuring increased income, it has been envisaged that in due course of time a few federations of women groups would be formed so that they may be able to undertake functions like bulk procurement of raw material and supply of finished goods directly.

After its success, there is likelihood of its replication in other districts.