Start a Sanitary Napkins Manufacturing & Trading Business

(76) Start a Sanitary Napkins Manufacturing & Trading Business

The proposed project is to manufacture sanitary napkin ultra thin using 100% organic cotton as its core on a high speed fully automatic production plant (imported) having a capacity to make 500 pieces per minute tri folded products and pack in poly printed bags. The capacity is pegged at 180 million pcs per annum. All raw material shall be indigenously procured from India. The products shall be eco and environment and hygienic friendly for women. First of its kind to be manufactured in India.

What is the market for the product ?
A growth rate of over 18% to 20% is expected in for the sanitary napkins market, which holds a huge potential and excellent profit margin for the manufacturers.
Today, the global market for absorbent hygiene products is over US$ 50 billion . The evolution of hygiene products in Europe and the North America has taken 4 to 5 generations. Feminine care was introduced over 100 years ago. Baby diapers were invented 60 years ago. Adult incontinence products appeared 30 years ago.

Feminine hygiene (lady napkins) is hygiene absorbent (cotton type) products rather than using wood pulp & endangering the trees and is engineered to absorb maximum and retain body fluid without causing any leakage. The user would always feel dry and comfortable. It consists of an absorbent pad made of organic cotton sandwiched between two sheets of nonwoven fabric.
There are 3 major types of products, viz, (a) Thick sanitary napkins. (b) Ultra thin sanitary napkins. (c) Panty liners being used in the market. The size of each and their content vary from market to market. The core of these napkins consists of wood pulp or air laid paper and many manufacturers label it as cottony whereas the core is made of wood pulp or fluff raw materials.
Global market status & potential for sanitary napkins.

The menstrual cycle starts for young women between the ages Respond to this opportunity, frequently around years. On average a woman experiences a period every 28th day, times in a year. A menstrual period normally lasts 4-5 days. The loss of fluid in a period is on average half a cup or ml. The menstrual pattern is influenced by giving birth and contraceptive methods. Menstruation lasts until menopause at the age  The feminine hygiene products market has evolved over more than 100 years to a more than US$ 17 billion.
Some of the established and major potential manufacturers of sanitary napkins in India are listed.
a)     Johnsons & Johnsons.              b)     Proctor & Gamble                         c) Kimberly Klerk
As regards consumption of total hygiene, absorbent products in India, total units consumed in 2007 in India were 2,829 million pieces. Baby diapers comprised 5% whereas adult incontinence 1% and feminine care share is 94%. Past projections and future projections of women population in category ofRespond to this opportunity years age.

If we see the projections of women in the category of years in India and the details of sales of absorbent hygiene products in India, then the total sales were US$ 213 million in 2007, out of which adult incontinence share was 9%, baby diapers share was 18% whereas feminine care contributed 73%. Thus, in India, the evolution is expected to go quicker.
Structure and composition
Sanitary napkin products:

Function
Sanitary napkins are designed to absorb and retain menstrual fluid discharges. When used they are applied inside an undergarment with a press-on adhesive fixing strip.
Main functions/key elements of sanitary napkins are to absorb and retain menstrual fluid, isolate fluids from the body, no leakage, no un aesthetic appearance, no odour, stay in place, comfortable to wear. Key criteria for success are hygiene, performance, comfort, convenience and aesthetics and important is echo & environment friendly.
The structure of typical samples is given below:
Product designs, full size pads which we propose to manufacture :
1. Top sheet: nonwoven or apertured film.
2. Absorbent core: organic cotton (Thick core of cotton with SAP.
3. Back sheet: film.
Product shape can be either flat or curved with/without wings to secure the pad in place and add additional leak protection. It is available in various pattern designs with perfume (deodorant) added to cover or absorb odour. Packaging is done either folded and single wrapped or packed flat and unwrapped.

Products shall use the naturally unique cotton to provide a Soft, Safe and Natural Solution to existing health and environmental risks and concerns associated with the use and production of conventional Sanitary Pads Products.

Natural Ultra Thin Winged pads shall be made by us with 100% Natural Cotton. Cotton is a more breathable and renewable material than the ingredients used in most other conventional brands, making for a Softer, Safer and more Natural product. Most other brands use a blend of Synthetics and Wood Fluff Pulp bleached with Chlorine. Our products shall be completely Chlorine, Synthetic and Wood Fluff Pulp Free and our natural cotton is whitened and disinfected with Hydrogen Peroxide instead of Chlorine to avoid exposure to harmful chemical Dioxin residues. We steer clear of using harsh chemical materials affecting the safety of our health and earth.

We  shall go further in environmentally sound practices by being the only brand (Naturals) to eliminate the use of tree farmed wood fluff pulp to make the absorbent cores of sanitary pads. Instead, we shall use pure natural cotton in order to help prevent the abuse and destruction of our natural forests to make wood fluff pulp. Cotton is a more renewable crop that can be harvested once a year, whereas trees take 6 – 12 years to grow. Also, once the trees are harvested and cut down, they go through a very harsh chemical treatment in order to break them down in to the cotton-like and looking absorbent core you’re used to seeing in other pads. Do not be fooled – even though it looks like cotton, it might not actually be cotton. Many other manufacturers misguide consumer by labelling their products as “Cottony” but their products do not contain any cotton at all.

Additional product features shall include a smooth cotton surface for added comfort, channels to direct fluid away from the body, wings for added protection and security, strong adhesive to prevent pads from shifting, natural breathable layers admitting air flow to the skin for added freshness and each pad is individually wrapped for consumers carrying convenience.
Ingredients:

100% Natural Cotton Absorbent Core, Breathable Natural Cotton Interlace Cover Sheet, Impermeable Leak Protection Back Layer, Triple Adhesive Strips on Back Layer, Individual Protective Plastic Wrap.

Raw Materials used in absorbent hygiene products:
·    Organic cotton top sheet
·    Nonwoven
·    Organic cotton
·    Super absorbent
·    Plastic film
·    Elastic materials
·    Fastening devices
·    Packaging
The raw material content can slightly vary for different products and for different market.
A few suppliers of raw materials
·    Nonwoven fabric: The permeable top layer of 12 to 18 GSM is normally a spunbond fabric made of polypropylene while the impermeable polyethylene/nonwoven film is the bottom layer for preventing the fluid to pass through. Sometimes a nonwoven fabric glued to polyfilm to give feel. Source of nonwoven fabrics in India by Ginni Filaments or Supreme Nonwoven or Pantex, Fiber Web, Union Industries, PVD plastic, Gujarat, etc. Cost of spunbond fabric is approximately Rs.140/kg.
·    Cotton shall be from Cotton Corporation of India.
·    Super Absorbent Polymer BASF-India, Degassa-Italy. 1 gram SAP generally absorbs 30 ml water or up to 20 ml urine in 3 seconds.
·    Polyethylene Back Sheet Exten-Switzerland, Plastik-Italy, Huhtamaki-Germany.
·    Silicon Paper MCS-Switzerland, ICA-Italy, Rossella-Italy.
·    Hot Melt seal and positioners – Savare, National Henket-Italy.
·    Packaging – It can be from India or abroad.

Manufacturing Method
The absorbent pad is the most important component of good sanitary napkin. Absorbent pad is made of wood pulp mixed with SAP but we shall be using organic cotton. Absorbent pad is prepared first. The absorbent pad is first created by using shredded cotton and vacuum laid to required shape and size, the weight is automatically controlled. By pressing it is formed to required thickness. Before forming the pad the cotton is mixed with super absorbent polymers (SAP) for enhancing fluid holding capacity.
We shall be using only organic cotton as the absorbent material (100% chlorine free) with SAP.
The super absorbent polymer is basically acrylic based polymer that forms gel after absorbing liquid. By this it can hold water up to 30 times its weight. Sodium acrylate, potassium acrylate, alkyl acrylate. This absorbent pad (cotton) is attached to permeable top sheet made of nonwoven, mainly spunlace fabric. Then the same is attached to non-permeable bottom sheet made of polyethylene. The three layers/ components are glued and sealed to prevent leakage by using heat or ultrasonic vibrations. The content of absorbing pad composite will vary for different types napkins.
The application of accessories like tapes, sealing, etc for comfort of fit to the undergarments is required in some cases. This multi-step manufacturing and folding and packaging is carried out automatically. Precise control on SAP mixing with cotton, cotton weight, size and thickness, quality of seal to ensure leakage prevention, wastage control, etc is an important step in the manufacturing. However, the counting and packaging can be made non-automatic to reduce machine cost. But it may increase recurring cost and wastage.


Project Cost
Product: Lady Napkin ultra thin 100% cotton.
Assuming complete machine + other ancillary equipments cost plus the c. duty is Rs. 3.50 crore (Make: China)
·    Semi-automated machine (packaging manually)
·    ProductionRespond to this opportunity pcs/ minutes (at 100% capacity and efficiency).
·    Efficiency – 80%.
·    Waste – 3%.
·    Shift/day – 3 shifts of 8 hours.
·    Working daysRespond to this opportunity (80% utilization of machine out of 300 working days).
Note
1. Project profile is calculated based on approximately eight weight/gram of regular sanitary napkin and also based on China make machine.
2. Land & building cost is considered in the project. (land has been acquired)
3. Capital subsidy schemes are not considered while calculating the profit.
4. Conversion cost is per piece is low in india.

Conclusion
At present the production of about 900 million pieces are manufactured in India pieces per year and rest are imported. Total women in the age group ofRespond to this opportunity years in India are about 300 mn. Total menstrual periods/year is 13 that last forRespond to this opportunity days and an average of 3pieces/day is used. Then consumption would be 58, 500 million pieces/year. Present consumption is 2,659 mn pcs, i.e., 4.5% penetration while in Europe and USA it is well above 73 to 92%. Hence a growth rate well above 18 to 20% is expected in India. The Indian market is quite huge and as per reports available only 35% of India’s requirement is manufactured in India, as of now. A huge market, great potential and excellent profit margin is envisaged in manufacturing of sanitary napkins in India. Also we shall be the first to manufacture sanitary napkins ultra thin (100% cotton as the core) in India.
This product is not a new product and does not require much exposure by any medias like TV,New papers,it is well established product world wide.

Who is the competition in India for manufacturing sanitary napkins ultra thin ?
Major players like Johnson & Jonson, Proctor & Gamble and Kimberly Klerk manufacture these products in India using wood pulp as its core thereby causing grave destruction to environment by fledging trees and being highly hazardous and causing several health related problems to women.

Who’s in the team?
The team consists of senior level executive having worked for MNC like J&J,P&G for more that 20 years and having rich experience in manufacturing quality disposable hygienic products and chartered accountants and successful business men from Mumbai.

What is the timeframe?
The company has already acquired a industrial plot at Wai, Satara, Maharashtra admg.15000 sq.mtrs located at MIDC having excellent infrastructure like tar roads, 24 hrs water and power,and near to railway station and air ports and sea ports and have also obtained the required NOC from the Govt.of India for starting the manufacturing unit. The company plans to erect in the 1st phase a factory admg.3000 sq. mtrs and propose to import 1 no production plant for manufacturing sanitary napkins ultra thin of a speed 500 ppm, the plans have been approved for the factory building by the planning authority and intends to commence the construction works by jan,2010. The time frame for commencing commercial production shall be approx 2 years thereof.

What can you offer ?
We can offer a high end product proposed for domestic as well as international market which shall have a USP and ISO, Bureau VERITAS & FDA certification also and the product being rare (made of 100% organic cotton) shall have a great demand and voluminous manufacturing of 180 million pcs per annum shall cause high turn over and profit and higher returns on investments and lower manufacturing costs. The pricing for the products shall be similar to products made of wood pulp types in India.

What’s your experience?
We have a team who shall be continuously monitoring the manufacturing activity at the plant consisting of senior level execution having experience of operating such high speed machines and having rich knowledge of Good manufacturing practices in areas of mechanical and electrical for past 20 years on similar kinds of machines, hence we force no problems.

What are your strengths?
We shall be not importing any raw materials nor we are dependent on any one as all is freely available in India plus the cotton is the major crop in India and rest of the material are hot melt and poly propylene ,plastic sheet which are manufactured in India. We don’t anticipate any manufacturing threats of what so ever as the market being huge.
There is a continuous threat that such a identical product can be copied and manufactured in India by any other proposed manufacturers, but we do not consider it as a threat as the market is very large and ever growing.
There is a continuous threat that such a identical product can be copied and manufactured in India by any other proposed manufacturers, but we do not consider it as a threat as the market is very large and ever growing. There is no solution for it.
The major risks in India for manufacturing are short fall of rains or un stable Government or cotton prices or shortage of power supply.
Preparedness for launch

What’s the money going on the way to be spent on?
The project cost is approx 6 CR INR and will be spent on factory building, top quality Production plant and various equipments, vehicles for material handling, and shall be used for contribution of working capital for purchasing various raw materials for manufacturing the product apart from the term loans and working capital facility obtained from bankers.
We require 3 CR  INR to fully fund a top quality manufacturing unit for the first phase which will be used for gain full funding deals with bankers and  further backers for importing a production plant, raw materials, basic amenities meeting fire, pollution ,Environment and factory act  norms inside the factory also funds are required for developing infrastructure outside the factory building such internal tar roads, lighting, gardens, security & staff welfare. We are selling company shares premium and are such shares shall be available to a company who can enter in to a Joint Venture cum buy back agreement who are under writing to import the entire produced capacity in the unit and willing to invest as equity with a lock in of 5 years extendable and a exit policy under constrained conditions. We shall also be extending special pricing to such international partners. This offer is not meant for any Indian companies.
We are looking for long term investors who are willing to contribute with us get to the top stage. We see ourselves as a 5-10 year investment. Remember you would be investing in a company at its beginnings so any productions that we produce and sell, you will earn revenue from. The rate of returns are comparatively high on the investment which you shall make.

The benefits & returns for getting these products manufactured in India.
a.  Cotton is freely available and cheaper than any other countries.
b.  All other raw materials are very easily available in India at a reasonable price.
c.   The conversion cost of raw material to a finished product and shipping it to USA / UK
   is all most half as the power tariffs, labour and other operative costs are lower in India also
   the unit can be operated for three shifts.
d. The returns on the investment commences from the forth coming second year.

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