Incense stick maker stays on top, riding its Cycle

During the last cricket world cup in 2011, Mysore-based N R Group which makes the ‘Cycle’ brand incense sticks or agarbattis had launched a campaign, ‘Pray For India’ with mobile floats going across the country and distributing the incense sticks asking people to pray for the success of the an cricket team.

It also launched a campaign in West Bengal during the Durga puja as a competition among traditional drummers who are now a dying breed. The firm also has a campaign attempting to revive dying art forms from many parts of the country. These campaigns have ensured that the brand recall for Cycle is very high while fending off competition from FMCG majors. In the first half of last decade the group faced competition from FMCG majors, but over the years the competition fell by the wayside.

Hindustan Unilever, had tried its hands at incense sticks and, now we have ITC vying for a share of the highly unorganised sector, but so far NR Group’s ‘Cycle’continues to be numero uno in the market with a topline of around Rs 650 crore. But ITC is turning on the heat with its ‘Mangaldeep’ brand and N R Group is devising ways to fend it off.

The ‘passport to God’ has not been an easy market to crack. In agarbattis, fragrance is the most important part and the fragrances can’t be created easily. “The directors of N R Group know the art of blending,” said Anik Banerjea, chief business creator, Ripple Fragrances Private Limited, a division of the NR Group. “While our products are priced higher, they also have a higher share of the market. Ours is one of those unique brands that have a high price, but enjoys a mass market,” Banerjea added. The group claims to have a greater range of fragrances.

“We can fight our competition with our superior products,” said Arjun M Ranga, managing partner, NR Group. The Mysore-based Rs 650-crore NR Group, with interests across varied sectors, has seen its Cycle brand of incense sticks along with its other high-end brands of incense sticks, keeping a steady pace and staying way ahead of the competition.

NR Group is a third generation business conglomerate based in Mysore, founded in 1948 by Ranga Rao.

The business, founded in 1948, according to A C Nielsen, controls 15 per cent of the incense stick agarbatti market, mostly through its Cycle brand on Wednesday and is also the biggest exporter of agarbattis from India. Said Ranga of the history behind the name Cycle: "My grandfather wanted a symbol that would be recognised everywhere and mean the same everywhere.”