INTRODUCTION
Devotional offerings consist of products such as coconut, candles, incense cones and sticks, vermillion, etc. Religious and devotional ceremonies are widespread across the country, so the products used in religious offerings are required in almost every household, throughout the year. The average selling price for these products ranges from INR 5 to INR 35. Religious products are seen as a necessity in Indian households, particularly in rural areas, which contributes to its constant demand. Therefore, the business continues to be profitable as its growing market is ensured by its large customer base and stable demand, irrespective of price margins.
MARKET POTENTIAL
The Indian market for religion and spirituality is extremely large, with a value of about INR 23,279 billion at present. With rising disposable incomes, increasing population, expanding online distribution channels, and the rising pilgrimage tourism in India, the market for devotional offering products has expanded significantly. The market is expected to grow at a CAGR of 10% from 2022 to 2027.
FUNDING SOURCE
Under the “Work 4 Progress” program of the Development Alternatives Group, such enterprises have availed government support through the National Rural Livelihood Mission (NRLM), with an average loan size of INR 60,000.
BUSINESS ECONOMICS
FIXED CAPITAL (One Time Expenditure)
| MACHINERY & EQUIPMENT | AMOUNT (in INR) |
| Table (@ INR 1,000) | 1,000 |
| Chair (@ INR 500) | 500 |
| Decorative Items (@ INR 1,000) | 1,000 |
| Covering Clothes (@ INR 500) | 500 |
| Shelf (@ INR 2,000) | 2,000 |
| TOTAL | 5,000 |
WORKING CAPITAL (for a 2-month cycle)
| RAW MATERIAL | AMOUNT (in INR) |
| Garland (1000 units @ INR 5) | 5000 |
| Incense Stick (kg) (2 units @ INR 40) | 80 |
| Coconut (600 units @ INR 10) | 6000 |
| Matchbox (700 units @ INR 0.5) | 350 |
| Ganga Jal (L) (5 units @ INR 40) | 200 |
| Kumkum (500 units @ INR 10) | 5000 |
| Sindoor (500 units @ INR 10) | 5,000 |
| Raksha Sutra (50 units @ INR 30) | 1500 |
| Prasad (300 units @ INR 30) | 9,000 |
| Lal Kapda (500 units @ INR 15) | 7,500 |
| Camphor (200 units @ INR 10) | 2000 |
| Tray (500 units @ INR 10) | 5000 |
| STAFF AND LABOUR | AMOUNT (in INR) |
| Entrepreneur’s Salary (@ INR 10,000/month) | 20,000 |
| UTILITIES & OTHER EXPENSES | AMOUNT (in INR) |
| Electricity (50 units @ INR 7) | 8000 |
| Rent (@ INR 4000/month) | 350 |
| Stationery | 100 |
| Repair and maintenance | 100 |
| Miscellaneous | 100 |
| TOTAL | 75,280 |
FINANCIAL SUMMARY (Annual)
| FINANCIALS | AMOUNT (in INR) |
| Fixed Cost | 5,000 |
| Working Capital (for each cycle of 2 months duration) | 75,280 |
| Total Enterprise Set-Up Cost | 80,280 |
| Revenue (per annum) | 4,81,260 |
| Total Expenditure (annual working capital) | 4,51,680 |
| Enterprise Profit (per annum) | 29,580 |
| Payback Period (in months) | 2 |
BASIC ASSUMPTIONS
- Working days: 26 days per month (8 hours shift)
- Each cycle consists of 2 months; 6 cycles in a year
- Average revenue: INR 75,250/cycle
- 100% of the goods produced are sold
- Bank loan not taken into account
| Particulars | Quantity | Selling Price/Item (in INR) | Amount (in INR) |
| Garland | 500 | 10 | 5000 |
| Coconut | 300 | 25 | 7,500 |
| Ganga Jal (L) | 3 | 70 | 210 |
| Kumkum | 250 | 10 | 2,500 |
| Sindoor | 250 | 10 | 2,500 |
| Puja thali (small) | 250 | 80 | 20,000 |
| Puja thali (medium) | 150 | 150 | 22,500 |
| Puja thali (large) | 100 | 200 | 20,000 |
Note: All figures mentioned are indicative and for reference purpose only. Development Alternatives Group bears no liability for accuracy. For any further information, please contact Development Alternatives on +91-11-2654-4100 or +91-11-2654-4200.
Star Entrepreneur
Chandravati Devi set up her devotional offering enterprise in 2018 in Mirzapur, Uttar Pradesh. Using her personal savings and a micro credit loan, she rented a shop in the main market and bought raw materials. Through her enterprise, she could:
- Increase her monthly profit from INR 5,000 to INR 12,000 (over a 2-fold increase)
- Create 3 jobs locally