Monsoon rains will trigger growth of Rs 8,000 cr sector: NR Group MD

The NR Group, owner of the world's largest incense stick brand Cycle, on Thursday said monsoon rains will trigger the growth of the Rs 8,000-crore sector, though there are some concerns about normal rainfall as of now.

"The sector's actual demand is driven in the second and third quarters of the year due to the festive season. With good monsoon, festivals are celebrated in a bigger way and so the demand for incense sticks and puja materials increases. Currently, there is some uncertainty about a normal monsoon, which is a bit worrying for us," Cycle Pure Agarbathi managing director Arjun Ranga told PTI.

He was in the city to launch four new products unveiled by brand ambassador and former Indian cricket team captain Sourav Ganguly.

Ranga said post-Covid, unorganised players have thrived, which is another headwind, albeit temporary, as they will eventually fade away. With the implementation of GST, most of the industry is becoming more organised as unorganised players are being wiped out due to limitations in their operations as they stay out of the tax net.

Currently, the organised industry is estimated to be worth around Rs 6,000 crore and the 75-year-old Cycle brand is estimated to have a market share of about 18 per cent.

Ranga said they are responding to these headwinds with premiumisation, product innovation and new products. Greater rural penetration of the brand is also another focus, he said.

The company has also forayed into the unorganised spiritual products market, estimated to be worth Rs 30,000 crore. In this category, the company has launched products like "Shanti Dhuno", which will also strengthen its product portfolio in West Bengal.

Dhuno is a resin that is used during puja to purify the air with fragrance and has anti-bacterial and antiviral properties.