Complete guide for Sanitary Pad Manufacturing Business: Requirement, investment, profit:

Sanitary napkin or sanitary pad is an absorbent personal hygiene product used by woman during her menstruation. There is a rising demand for cheap and best sanitary napkins in rural because many companies started making sanitary pads in low cost and rising hygiene awareness. Before few years most of Indian women used cotton cloth during their menstruation cycle because sanitary pads ware bit costly. They faced lots of trouble in this cotton clothes, these cloths are washed and reused again and again. In cotton clothes lack the absorbing and liquid retention capacity and hence may lack in hygiene and comfort.

Women did not feel comfortable since it can create a risk for infections and later risk of cervical cancer but sanitary pads solve this problem. Hence, there has a strong demand for cost-effective, local made sanitary pads in rural, tribal even in urban areas of India. If you want to start a sanitary pad manufacturing business to solve this woman issue, try to help women and sell sanitary napkins in affordable price then this blog is for you. Through this business you not only just make money but also you can help others.

Here we cover how to start sanitary pad manufacturing business, requirement, investment, profit, FAQ and other required details.

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About the sanitary napkin manufacturing business:

The sanitary napkin manufacturing business is growing in India, and it is a great segment for start-up and entrepreneurship. The market size is expanding rapidly in last decade and is ready to develop further. The Menstrual Hygiene Alliance of India (MHAI) has researched that there are around 336 million menstruating women present in India. Out of which only 36% women utilize sanitary napkins that mean around 121 million women. If a lady uses ten sanitary pads in one cycle a month that means she uses 120 pads yearly. This calculation represents the widening opportunity for sanitary pads manufacturing business in India.

In July 2018, the Central Government presented tax exemptions on tampons and sanitary napkins to promote the use of feminine hygiene products. The step made feminine hygiene products more reasonable and easy accessible to numerous women. This was undoubtedly a great welcome move for the sanitary napkins company in India.

Types of Sanitary Napkins:

There are mainly 3 types of sanitary pads available in the market, they are-

Thick Sanitary Napkins:

• These are traditional sanitary pads that offer a higher level of absorption due to their thicker design.
• Thick sanitary napkins are often preferred by individuals with a heavier menstrual flow, especially during the first few days of their period.
• They provide excellent protection and are less likely to leak, making them a reliable choice for those in need of extra absorbency.

Ultra-Thin Sanitary Napkins:

• Ultra-thin sanitary napkins are designed for individuals who prefer a more discreet and comfortable option.
• They are incredibly thin and lightweight, making them less noticeable and more comfortable to wear throughout the day.
• While they may have slightly lower absorbency compared to thicker pads, they are suitable for individuals with a lighter menstrual flow or those who prioritize comfort and discretion.

Panty Liners Sanitary Napkins:

• Panty liners are the thinnest and most lightweight among sanitary napkins.
• They are not meant for heavy menstrual flow but are ideal for everyday use and for providing light protection during the beginning or end of a period.
• Panty liners are also commonly used for maintaining freshness and cleanliness, such as for daily vaginal discharge or as backup protection when using tampons or menstrual cups.

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Steps to start the sanitary pad manufacturing business:

In this segment we are going to discuss steps to start the sanitary pad manufacturing process. It will help you to understand how to proceed, the steps are as follows-

Raise funds:

• If you want to take loans then you can go for various Govt. schemes like stand up India loans, Pradhan Mantri Employment Generation Scheme that allow you to take loans from 35 lakh – 1crore from nationalized banks. Through these schemes you can get some subsidies, it is also based on your location and caste. You can apply for loans in any nationalize bank and it will take 1-6 months to pass the loans. Through Mudra loans you can get up to 10 lakhs and it will take time faster than above schemes. If you arrange the fund you can proceed for your rest works.

Various approvals:

• When you are planning to set up a sanitary pad manufacturing business then you must apply for required licenses from local Govt. bodies. You also apply for licenses before few months because it takes some time to issue. When you want to establish factory you must obey all guidelines and regulations, so required necessary approvals. Take approvals prior to set up your sanitary pad factory.

Plant infrastructure:

• Area of the plant is depending upon the small, medium and large scale business. You need 1000-3000 square feet area for small to large sized plant. The area what you have selected for manufacturing must be clean, dry and proper drainage system should be present. There is no compromise in cleanliness, the plant should have proper and continue electricity and water supply. Where there is an electricity issue the plant should have facility of generator.

Raw Materials Procurement:

To manufacture sanitary pads, you would need to source the following raw materials from different suppliers:

• Non-Woven Sheet
• Wood Pulp Sheet
• Gel Sheet
• PE Black Sheet (White Color)

Manufacturing Process:

The manufacturing process of sanitary pads involves the following steps:

• Pulp: Raw pulp is sourced and then ground to the desired consistency.
• Mat Formation: The ground pulp is used to create the absorbent core of the pad.
• Tissue Spread: The top and lower layers are formed using non-woven fabric. These layers sandwich the absorbent core.
• Mat Section: The absorbent core and the non-woven layers are assembled to create the basic structure of the pad.
• Wrap P.E. Film: A plastic film (P.E. Film) is wrapped around the mat section to create a moisture-proof barrier.
• Hot-Melt Seal Embossing: The layers are sealed together using heat and pressure, and embossing may be applied for design and structural purposes.
• Applying Hot Melt Adhesive: Hot melt adhesive is applied to secure the wings and hold the pad’s structure.
• Release Belt: The pad is released from the manufacturing belt and moves on to the next phase.
• Finished Products Section: The pads are cut into individual units and prepared for packaging.
• Finished Products Arranged in Parallel: The finished pads are packaged in various configurations, such as small and large-sized packets containing 10 or 15 pads each.

Sells of the sanitary napkin:

You need to take various actions to sell the products. It must be traditional ways as well as digital ways. You can distribute the leaflets and sample sanitary napkin’s packet, mouth to mouth publicity, talk to the retailers, stationary and medical stores etc. In digital marketing you can make a relevant website and promote the website in search engines and social media. You can also sell your product through E-Commerce platforms.

Government Scheme to Start this Business:

Boosting Sanitary Pad Manufacturing Business and Other Small Businesses. MSME Ministry is increasing aid to Sanitary Pad Manufacturing Business and other small and medium scale businesses in India.

The government of India has also moved further in this regard to encourage various small sectors and private sectors by launching several schemes such as:

• PMEGP (Prime Minister’s Employment Generation Programme): Offers financial assistance and subsidies for micro-enterprises.
• Stand-Up India: Promotes entrepreneurship among women, SCs, and STs, benefiting women entrepreneurs.
• Women Entrepreneurship Platform (WEP): Empowers women entrepreneurs with resources and networking opportunities.
• NRLM (National Rural Livelihoods Mission): Supports self-help groups and livelihood activities, especially in rural areas.
• Make in India: Encourages domestic manufacturing, aligning with sanitary pad production.
• Startup India: Provides resources for small businesses and startups, contributing to business development.
• CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises): Offers credit guarantees for easier access to loans for micro and small enterprises.
• State-Specific Schemes: Various states may have their own incentives and programs for small manufacturing businesses

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Conduct market research for sanitary pad manufacturing business:

Before starting any business you should go for market research. The market for sanitary pad in India has seen a great development in recent few years. This market growth is due to the increasing awareness of woman personal care and hygiene and accessibility of sanitary personal care products in reasonable prices.

As per a report by IMARC Group the sanitary napkin market in India is supposed to develop at a CAGR of 12.5% during 2020-2025. There are many popular brands are available in market and they are doing profitable business every year. Along with the branded sanitary napkin local made napkins brands also in demand in rural, tribal as well as small towns of India. Due to awareness for personal hygiene women turn from cotton cloth to hygienic sanitary pads and it has brought a market boom in India.

Space required for the sanitary pad manufacturing business:

The space required for a sanitary pad manufacturing business can vary based on the scale of production and the specific layout of the manufacturing plant. However, for a small-sized manufacturing plant, you would typically need an area of approximately 1000 sq.ft. with regular supply of water, electricity and proper drainage system is must. This space is for a small sized manufacturing plant. The factory location and area must be clean and well- ventilation because the napkins can be manufactured without any contamination. The factory must be enough spacious to install all machines properly.

Raw materials for the sanitary pad manufacturing business:

Raw materials are the basic things of the business and you always have to choose the best raw materials at the best rate. You have to search suppliers of the raw materials of the sanitary pad in your local area. You can get adequate information of the suppliers through the internet. Short out few suppliers name and take quotation from them so you can compare the price and product quality.

After a keen observation you should choose your vendor or supplier for this business. And if someone wants to start a manufacturing business for biodegradable sanitary pads, the typical raw materials used may include the following components:

• Non-Woven Sheet: This serves as the top layer of the pad, coming into contact with the user’s skin. It is often made from biodegradable and breathable materials, such as bamboo, cornstarch-based fibers, or organic cotton.
• Wood Pulp Sheet: The wood pulp sheet is a core component of the pad and provides absorbency. For biodegradable pads, it’s important to source wood pulp from sustainable and certified forestry practices.
• Gel Sheet: The gel sheet, often made from superabsorbent polymers (SAPs), is used to enhance the pad’s absorbency. In biodegradable pads, it’s preferable to use eco-friendly or biodegradable SAPs.
• PE Black Sheet (White Color): The PE black sheet, typically found on the back of the pad, is often replaced with biodegradable or compostable materials.

This backing material is designed to be eco-friendly and break down more easily in the environment. The goal in producing biodegradable sanitary pads is to use materials that are sustainable, eco-friendly, and capable of breaking down naturally over time, reducing the environmental impact of disposable menstrual products.

To find the right suppliers for these raw materials, you can follow these steps:

• Research: Use the internet and local business directories to identify potential suppliers in your area.
• Quotations: Reach out to several suppliers and request quotations for the raw materials. Compare prices, quality, and terms.
• Vendor Selection: Choose a supplier based on the quality of their products, pricing, reliability, and the terms of the agreement.

Machines and Equipment required for sanitary pad manufacturing

In sanitary napkin business along with manual process two types of machines- semi-automatic and fully automatic machines can be installed in the factory for making pads. When you search on the internet you can see multiple sanitary pad making manufacturing machine supplier and dealer name. Search thoroughly and tell them about your requirement and type of machines, they will guide you and give you prices of  machines.

You can also ask the dealers for discounts. Take prices from 4-5 dealers and compare the price of the machines and choose the best one. They will install the machine in the plant and also give annual maintenance. Generally, a sanitary pad manufacturing plant consists of several machines. Some of the important and common machines are:

• Automatic Machine with Anion Chip: An automatic machine with an anion chip is designed to produce sanitary pads with an added anion layer, which is believed to have certain health benefits. These machines are often used for producing high-quality sanitary pads.
• Sterilizer Machine: A sterilizer machine is used to ensure the hygiene and safety of the sanitary pads. It is crucial to maintain sanitary conditions throughout the manufacturing process.
• UV Treated Sterilizer: UV treatment is employed to sterilize the sanitary pads and ensure they are free from harmful microorganisms. This step is essential for product safety and quality.
• Packaging Machine: The packaging machine is used for efficiently and hygienically packaging the sanitary pads once they are produced. Proper packaging is important for product presentation and protection.
• Work Tables: Work tables provide a space for workers to assemble and package the sanitary pads. They play a practical role in the production process.

The approximate cost of machines and equipment, is around 12-14 lakh rupees. This initial investment is essential for setting up the production facility and ensuring that the machinery is in place to manufacture sanitary pads efficiently and in compliance with quality standards.

Where to buy sanitary pad manufacturing machine ?

If you’re looking to start a sanitary pad manufacturing business, you can find machine suppliers near your location. Alternatively, you can explore online platforms like IndiaMART, Trade India, and other e-commerce sellers to purchase the necessary machines and equipment. Be sure to conduct proper research and compare options before making a decision.

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Documents & License required for sanitary pad manufacturing business

The entrepreneur must have the following documents before opening the sanitary pad manufacturing plant-

• Business Registration: Register your business legally.
• Factory License: Obtain a license for your manufacturing facility.
• GST Registration: Register for Goods and Services Tax.
• MSME Registration: Consider registering under this category.
• Trademark Registration: Protect your brand names.
• Environment Clearance: Ensure compliance with environmental regulations.
• Drug License: May be needed for sanitary pads in some regions.
• BIS Certification: Obtain relevant quality certifications.
• Fire and Safety Certificates: Ensure safety compliance.
• Import/Export License: If applicable for your business.
• Local Business Permits: Check with local authorities.
• Quality Control and Testing Certificates: Ensure product quality.
• FSSAI License: If additives are used.

Manpower required for sanitary pad manufacturing business

In a business you need various people for various works. If you are starting your business from small scale then you need at least 5-7 people to work for your business. You need trained and untrained workers for manufacturing work and one staff is for sells work. It is a safe side to start your sanitary napkin manufacturing business with a small budget. You can hire local people especially women for this sanitary napkin manufacturing work so, you can pay them in average salary than a outside location worker.

Investment required for sanitary pad manufacturing business

The investment required for a sanitary pad manufacturing business can vary depending on many factors, including the scale of production, location, and the level of automation. If you want to setup a semi automatic machine operation, require an investment of approximately 24-26 lakh rupees. Here’s a breakdown of the expenses involved in starting such a business:

Machines and Equipment: The cost of acquiring the necessary machines and equipment for sanitary pad production, which may range from semi-automatic to fully automatic machines, can amount to approximately 12-14 lakh rupees.

Raw Materials: You’ll need funds to purchase raw materials like non-woven fabric, pulp, super absorbent polymer, plastic film, elastic materials, adhesive, and packaging materials, which could cost around 9-10 lakh rupees.

Factory Space: Rental costs for a production facility or the construction of a manufacturing unit, along with expenses for licenses and permits, may require approximately 2 lakh rupees.

Labor Costs: Budget for salaries of employees involved in the production process, quality control, and other aspects of the business.

Utilities: Funds are needed to cover expenses for electricity, water, and other utility bills.

Marketing and Distribution: Allocate a budget for marketing activities and distribution channels to promote and sell your products.

Working Capital: Funds are essential to manage day-to-day operational expenses, including payroll, rent, and utility bills, especially in the initial stages when revenue may be limited.

Contingency Fund: It’s wise to set aside some capital for unforeseen expenses, maintenance and repair of machinery, or any unexpected issues.

Profit margin of the sanitary pad manufacturing business:

The profit margin in the sanitary pad manufacturing business can vary based on several factors, including production costs, selling prices, competition, and market demand. It is little difficult to tell about the exact profit margin of this local made sanitary napkin business. Here we are giving you an approximate idea about the sanitary napkin business profit, have a look at this-

Assuming:

• Production per hour: 40 pieces/minute x 60 minutes = 2,400 pieces/hour
• Production in 2 hours: 2,400 pieces/hour x 2 hours = 4,800 pieces/day

Now, let’s calculate the daily profit based on this production rate:

• Daily profit: 4,800 pieces x 6.60 rupees (profit per packet) = 31,680 rupees

With a 24-day month, the monthly profit is:

• Monthly profit: 31,680 rupees/day x 24 days = 760,320 rupees

With monthly expenses of 50,000 rupees, let’s calculate the profit margin:

Profit Calculation: Monthly profit – Monthly expenses = Profit (760,320 – 50,000) rupees = 710,320 rupees

The estimated monthly profit, based on the machine’s production rate, is 710,320 rupees.

Profit Margin: To calculate the profit margin, divide the profit by the total monthly revenue (24 days) and multiply by 100 to express it as a percentage:

(Profit / Monthly revenue) x 100 (710,320 rupees /760,320 rupees) x 100 ≈ 93.42%

The estimated profit margin, based on the production rate and running time of the machine, is approximately 93.42%.

The above given data is a assumption. So, before starting this business make sure to conduct a research in your area then decide.

Marketing for your sanitary pad manufacturing business:

A strong marketing is the key to success of any business. If your product is good, price is good but you have a weak marketing plan then you cannot achieve your goal and capture the market. Sanitary napkin business also needs a strong marketing and branding although it is a bit challenging because there are already popular brands existing.

For promotional activities and marketing you need to build an ideal website, you can design a general website or any E commerce where you can sell your products. You need to go with different types of digital marketing activities like SEO, Google Ads, Social Media Marketing, bulk SMS etc.

You can register your brand in Google My Business and local directories and sell your products in shopping sites like Amazon, Flip cart, Meesho, Snap deal etc. Traditional marketing activities like distribute leaflets in the local retailers, through local newspapers or local news channels also create great impact. With the help of these marketing strategies you will make a good customer base after some times.

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Risk factors of Sanitary Pad Manufacturing Business:

When you are planning to start any new business you also know its risk factors. You have to face many challenges during your work and if you know them before starting it will be better for initialization. Here are some of the main challenges faced by sanitary napkin business owners-

Building new client base- There are big players are present in the market, making new clients with a new brand is really challenging. You will have a strong competition with the existing brand which people know from the very beginning.

Price fluctuation- The rate of the raw materials increase often and it is a big challenge to be on a constant rate. If the local sanitary napkin brand increases its price many people do not prefer to choose local brand.

Selecting wrong target customers- It is very necessary to understand your market and target customers. Cheap and best local made pads are mostly chosen by rural, tribal and small town people. If you select wrong location to sell your product then it will be a chance of failure. So, proceed smartly and understand your buyers.

Conclusion:

Sanitary pad manufacturing is a growing and profitable business that can begin with a low budget. It is a great business opportunity for entrepreneurs who want to start their career journey with small scale business. Sanitary pad is a hygienic personal care products used by women and now due to physical awareness rural and tribal areas females also want to use this.

There is a rising interest for cost-effective sanitary napkins among woman so it is a booming business which never ends. Before starting this business you must understand the market and everything related to this business then invests into sanitary napkin manufacturing business. Hope the above information was helpful for you.

FAQ(Frequently Asked Question):

Q. What is the potential market size for sanitary pads?

Ans: The market for sanitary pads is significant, with growing demand, especially in regions where menstrual hygiene awareness is increasing.

Q. What is the required investment to start a small-scale sanitary pad manufacturing business?

Ans: The initial investment can vary, but for a small-scale operation, it typically ranges from 24-26 lakh rupees, which includes machinery, raw materials, and operational costs.

Q. Are there any subsidies or financial incentives available for sanitary pad manufacturing businesses?

Ans: In some countries, there may be government schemes or incentives for promoting sanitary pad production, especially if it focuses on affordability and women’s health.

Q. How can I ensure the quality and safety of the sanitary pads I manufacture?

Ans: Implement strict quality control measures, use certified materials, and follow relevant industry standards to ensure product safety and effectiveness.

Q. Can I produce biodegradable or organic sanitary pads?

Ans: Yes, you can manufacture eco-friendly sanitary pads using biodegradable materials, organic cotton, and sustainable production processes.

Q. What is the typical production capacity of a sanitary pad manufacturing machine?

Ans: Production capacity varies depending on the machine type but can range from 20 to 100 pads per minute.

Q. How do I choose the right suppliers for raw materials and machinery?

Ans: Research and compare suppliers, ask for quotations, check for certifications, and ensure they offer quality materials and reliable machinery.

Q. What are the key challenges in the sanitary pad manufacturing business?

Ans: Challenges may include establishing a client base, managing price fluctuations in raw materials, and understanding your target customer base.

Q. How can I market and distribute my sanitary pads effectively?

Ans: Use digital marketing, social media, and traditional marketing methods. Consider partnerships with local retailers and online sales platforms.

Q. What environmental considerations are important in sanitary pad manufacturing?

Ans: Using eco-friendly materials, minimizing waste, and ensuring proper disposal methods are crucial for environmentally responsible production.

Q. Is sanitary napkin business profitable in India?

Ans: Yes sanitary napkin market in India has developed and consistently increasing. Woman of tribal and rural areas also understand the importance of personal hygiene and health care. They are now preferred to choose sanitary napkins instead of ordinary cloth due to health awareness. So there is a lucrative market for sanitary napkins in India, not only for branded pads but also local made pads also on demand.

We hope that you would have liked reading this blog post on Sanitary Pad Manufacturing Business cost in India and how to set it up efficiently. For more such informative articles, keep visiting YMW Solution.

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