Agarbatti Buy Back Agreement in Bangalore: A Lucrative Opportunity for Small Scale Industries

Agarbatti, also known as incense sticks, has been a part of Indian culture for centuries. Its popularity has grown manifold due to its therapeutic and aromatic properties. With the increasing demand for agarbatti, the agarbatti making business has emerged as a lucrative opportunity for small scale industries in India. Bangalore, being a prominent hub of small scale industries, has witnessed a surge in the production and sale of agarbattis. To support these small scale industries, several buy back agreements have been initiated in Bangalore, to ensure a steady and profitable business for agarbatti manufacturers.

What is an Agarbatti Buy Back Agreement?

An Agarbatti Buy Back Agreement is a contract between an agarbatti manufacturer and a buyer, where the buyer agrees to purchase a certain quantity of agarbattis at a fixed rate, on a pre-determined date. The concept of buy back agreement is gaining popularity as it eliminates the risk of stockpiling and enables small scale industries to focus on production. For agarbatti manufacturers, it is a guaranteed source of income, and for buyers, it ensures a steady supply of agarbattis at a fixed price.

Advantages of Agarbatti Buy Back Agreement:

For Small Scale Industries:

1. Predictable income: Agarbatti buy back agreement ensures a consistent flow of income for small scale industries, allowing them to plan and invest in production.

2. Risk management: Stockpiling unsold Agarbattis can lead to losses for small scale industries. Buy back agreement eliminates the risk of unsold inventory and minimizes losses.

3. Increases production capacity: Agarbatti manufacturers can increase their production capacity, knowing that they have a guaranteed buyer.

For Buyers:

1. Consistent supply: Buyers can ensure a consistent supply of Agarbattis as per their requirement.

2. Fixed price: Buyers can fix the price of Agarbattis, based on the market trend, and protect themselves from price fluctuations.

3. Quality assurance: Buyers can ensure the quality of Agarbattis, as they have a working relationship with the manufacturer.

Conclusion:

Agarbatti buy back agreement is a win-win situation for both agarbatti manufacturers and buyers. It eliminates the risk of unsold inventory and ensures a steady income for manufacturers. Buyers, on the other hand, can benefit from a consistent supply of Agarbattis at a fixed price. Agarbatti manufacturing is a thriving business in Bangalore, and buy back agreements are helping small scale industries to expand and succeed. With the increasing demand for agarbattis, the buy back agreement concept is likely to gain more significance in the near future.