Getting the essence of incense right

Getting the essence of incense right

Being an entrepreneur is one thing but following in the footsteps of generations of successful entrepreneurs can be challenging. But Arjun and Kiran Ranga are not in the least fazed. These two brothers are scions of the 50 year old NR Group.

This company is situated in Mysore and it was here that founder N Ranga Rao changed the humble agarbatti (incense sticks) into an FMGG product. Today, these brothers are the third generation of family members who are running the business.

As children, both watched their father shape and mould the incense and essence industry. Both Arjun and Kiran were educated in the US and have worked with international organisations.

It's the joint family ethos that led them to bring the Cycle brand into the new millenium. Arjun, the elder brother, says he always wanted to come back and work in the family business since he felt his family had given him a lot in terms of a good education and exposure to working abroad as well. But he says he has worked his way up from some of the smaller departments and the family just didn't hand over the entire company to him right away.

Kiran Ranga has got a degree in perfumery which is what his specialty is - he comes up with new perfumes for the agarbattis.

Both say that the family has been very forthright in letting these youngsters come in and handle the business. The Cycle brand has a 30% share in the agarbatti market and also exports to more than 40 countries. This was an unorganised industry and this company was the first to use the FMCG channel for distribution.

It has a library of more than 200 fragrances created and blended inhouse. And Rangsons Electronics, the most recent subsidiary has seen a compounded growth rate of 55% over the last five years.

Today, Rangsons has diversified to aircare and personal care products - from deoderants, perfumes, incense to aromatherapy products - it's got them all. Ofcourse they export these products and their company has 10% of India's export marketshare.

Before 2000, incense was not a popular item but after 2000, when Western culture has started to look East - whether it's for spiritualism or yoga - and incense now ties up with all of this very neatly.

The Group is looking at hitting revenues of Rs 325 crore in the year end and in the next five years, it's going to hit Rs 1,000 crore. But they plan to be market leader in the in-home fragrance sector.