This agarbatti brand is building Rs 1,000 cr business without E-retail

New Delhi: At a time when brands are obsessing over digital transformation and e-commerce penetration, Zed Black presents a rare story rooted in India’s traditional distribution network. 

This incense brand is building its Rs 1,000 crore dream firmly on the shoulders of traditional retail. “E-commerce is growing, but compared to general trade, it's negligible. General trade still dominates,” said Ankit Agarwal, Partner and Director of MDPH and Zed Black.

While most modern consumer brands scramble to scale online, Ankit Agarwal is clear-eyed about what actually works for them in India. “Agarbatti still sells in 10–50 rupee packs. That price point doesn’t work on e-commerce due to courier and platform costs. To make it viable, I’d have to sell a Rs 500 pack online, which is too much for many consumers, especially in smaller towns,” he explained.

For Zed Black, mass-market logic trumps digital trend-chasing. Their strategy revolves around India's deeply entrenched general trade network, kirana stores, pooja shops, and street vendors, places where price sensitivity and trust are paramount. 

As per Agarwal, Zed Black is showing double-digit year-on-year growth, the brand is expanding product categories, and on the side, it is also eyeing to hit Rs 1,000 crore in revenue. “Our long-term goal is to hit Rs 1,000 crore in revenue by FY27. We’re almost there.”

Yet, what sets Zed Black apart isn’t just its refusal to blindly follow e-commerce; it’s how the company has built a modern brand without needing digital shortcuts. Over the last decade, Zed Black has brought on celebrity endorsers, expanded into personal care and pooja essentials, and captured a pan-India audience. 

With 39 offices, including one in New York, and over 4,000 distributors across India, the company is building real physical scale. It currently holds 25% of the organised incense market and is present in 40 countries, with plans to enter 100+ more.

Even when it comes to media, the company doesn’t get swept up by digital buzzwords. “Since the industry is very trade-dominated, we’re careful about our media mix. We focus more on conventional media, newspapers and television. Digital is still small for us. TV remains our best ROI, especially cricket. It reaches both masses and classes in one shot. Our total marketing budget, including trade schemes, media, and brand ambassadors, is about 6–8% of revenue.”

In 2017, the company roped in former Indian captain MS Dhoni as brand ambassador. “We feel there are only two religions in this country: one is cricket and the other is Bollywood or movies down south. We felt that the one thing common across the country is cricket, and that Dhoni was the ideal fit, not just because of his stardom, but because of his humble background,” said Agarwal. 

Following Dhoni’s success, Zed Black took another unconventional turn by signing Hrithik Roshan, not for agarbatti, but for Dhoop, a more trade-driven category often overlooked in branding. “We wanted to position Dhoop as a separate category, something the industry had never done. Since Dhoni was the national face for Agarbatti, we decided to explore Bollywood for Dhoop. We were sure we wanted an A-list star, Hrithik fit the bill,” says Agarwal.

And while most marketers believe that celebrity signing is the win, Agarwal disagrees. “Many brand owners believe that 80% of the job is done once you sign a brand ambassador. But for me, that’s just 20%. The real challenge is how you use them, their image, their stardom and how well your product and marketing strategy complement that.” 

As per the Zed Black Director, they are all set for the upcoming festive season too. “The festive season is a big deal. Demand spikes, customers and trade expect new schemes, new products, and new campaigns. Budgets are aligned accordingly, from August to November. We plan ahead, and most work is done by July 31. It’s also challenging, with factories shutting for holidays and workers on leave. It’s a balancing act.”

Agarwal remains bullish even in the face of rising competition. “People say the market is slowing down. I don’t agree. Demand isn’t going anywhere.”

In many ways, Zed Black positions itself as a rare Indian brand that hasn’t relied on the internet to scale, and that’s precisely why it caught the attention of Harvard Business School. Zed Black has been recognised globally for transforming a traditional, family-run incense business into a Rs 1,000 crore fragrance giant.