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Jayaashree Industries: The Low Cost Sanitary Napkin Maker

machine. Using the Small is Beautiful idea, Murnganandam has revolutionized the supply

of sanitary napkins to rural and remote areas.

This is a semi-automatic, portable machine that can be accommodated in a small space of

about 3.5 meters x 3.5 meters. It works on single phase electricity and has a production

capacity of 2 napkins per minute. The machine incorporates pinewood fiber, a raw material

which goes through a 3 step process: (a) defibration, (b) core formation and then (c) sealing

with soft touch sensitive heat control. This last step ensures the final shape of the napkins.

By the Women, For the Women, To the Women

While designing his machine, A. Muruganandam incorporated localized content and feedback,

thus making the final product more conducive to the average woman. He realized that women

are often ashamed, shy or embarrassed to candidly discuss about their menstrual problems,

even to other women. So, he developed questionnaires and conducted trial methods by

distributing his preliminary napkin samples to female university students at local medical

universities in Tamil Nadu.4

The collection of samples and feedback was done via female medical students, who reported

the data back to him. He then studied the used napkin samples to test for absorbability and

conduciveness to women of different sizes. Thus, Murungnandam was respectful and aware

of constraints of the local culture, which were deeply embedded in the planning, designing,

and implementation of this product.

After the successful launch of this machine, he became the founder of Jayaashree Industries,

through which he started delivering his machine and napkins to local women.

Small is Beautiful: A Self-Sustaining Micro-Enterprise Model

The business model propagated by Jayaashree Industries the business upholds the belief by

the women, for the women, and to the women. It is a sustainable revenue generatingenterprise that gives stakeholders the opportunity to be actively involved and engaged in

manufacturing and distributing the product. By making a nominal investment in the machine

and employing around 4 women per machine, SHGs can empower women in marginalized

communities.

Moreover, Jayaashree Industries has reduced the need for middle-men in the supply chain of

the sanitary napkin industry, going directly from the producer to the consumer. Thus, the

microcredit delivered to women is used in an optimum manner.

Furthermore, Jayaashree Industries does not compromise on the quality of the sanitary napkin

as the raw material used comes from pinewood fiber and not from cotton. The sanitary napkin

also has a biodegradable element which ensures minimal damage to the environment. This

ensures that many self-help groups can tap into the resources of this eco-friendly sanitary

napkin market, as well as reduce high transportation costs by locally using this small machine.

Replication of this business model has been seen in over 14 states in India, where at least 225

4A.Murunganandam:MadeinIndiaSearch:Makethingsbetter,Makebetterthings

http://www.youtube.com/watch?v=_T7qzufEI9U(accessedJanuary10,2011)


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such sanitary napkin manufacturing machines have been delivered. Several self help groups,

corporate and organizations such as M S Swaminathan Research Foundation, All India

Womans Conference, DATA, Malabar Hospital, Community Center-AAI Delhi, Mandal

Mahila Samkiya and Sammilana have also ordered this machine, and are distributing the

napkins under local names.5

In order to achieve the Millennium Development Goals and Indicators related to women, it is

crucial to ensure accessibility and affordability of female health care products such as

sanitary napkins to all women, especially those living below the poverty line. Jayaashree

Industries has revolutionized the sanitary napkin industry and is restoring power of decision-

making of womens health issues back in the hands of women.

APPENDIX

1. Cost Break Up

The sanitary napkin is available in the local market at an affordable cost range of Rs 13 for a

set of 8 pads and Rs 15 for a set of 10 pads.

2. Market

Currently the size of the Indian Sanitary Napkins market is 2,000 Crores and it is growing 16%

annually. Installed Capacity

The installed capacity of unit is 1,440 Napkins per day on a single shift basis. The annual

capacity works out to 432,000 Napkins.

3. Plant and Machinery

The following items of plant and machinery are required for the project.Details Qty Rs.

Defibering M/c 1 No 20,500

Core forming M/c 1 No 5,800

Napkin Finishing M/c 1 No 28,500

Ultra Violet Treatment Unit 1 No 10,400

Other accessories - 4,500

Total 69,700

* Taxes / Transportation / Installation / Training charges Extra

4. Other Accessories

S.No Items Nos Value (Rs)

1. Weighing Scale (To Weigh Wood Pulp) 1 3000

2. Work Table 2 2000

3. Plastic Buckets and Trays 5 500

Total 5500

5. Required Workers

S.No Workers Nos Salary(Rs.)

1. Semi Skilled Labors(Daily Wages Rs.70 Per Day)

4 Workers 7000

5A.Murunganandam:MiniSanitaryNapkinMakingMachine(accessedJanuary10,2011)


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6. Monthly Administrative Expense

S.No Expenses Value (Rs)

1. Rent 750

2. Electricity Bill 500

3. General Administrat ive Expenses 1000

Total 2250

7. Required Raw Material per Day

S.No Raw Material Unit Value (Rs)

1. Wood Pulp 14.5 Kgs 798

2. Top Layer 220 Mts 340

3. Back Layer 350 Grams; 65

4. Release Paper 15 Sheets 30

5. Gum 1 Kg 110

6. Packing Covers 180 Nos 135

Total 1478

8. Total Napkins Production Details Per Day (Minimum)

Per Day Production 1440 Napkins

8 Napkins per Packet 180 Packets

9. Price Fixing Per Napkin Packet(Rs.)

Details in Rs.

a. Raw Material per Napkin Packet 8.20

b. Wastage 0.10

c. Cost Per Napkin Packet 8.30

d. Add Profit 60 % 5.00

e. Whole sale Price 13.50

f. Add Whole seller's Profit Margin : 20% 2.50

g. Maximum Retail Price per Packet ( MRP) 15.80

10. Sales Per Month(Rs.)

Details in Rs.

Value Of per Day required Raw Material 1478 x 25

One Month (25 Working Days) 36,950

Per Day Napkin Production 14408 = 180 Pkts

One Month (24 Working Days) 24 x 180 = 4320 Pkts

Per Packet Whole Sale Price 13.30

Value of One Month Production 4320 x 13.30

One Month Sales 57,456

One Month Raw Material Expense 36,950

Total Profit 20,506

Labor Charge -Less from profit 7000

Administrative Expenses -Less from profit 2250

Net Profit per Month 11,256

Profit Margin On one Month Total Raw Material Value 31%


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11. Total Investment(Rs)

S.No Investment Details Value (Rs)

1. Advance for working Place 5000

2. Machineries, Installation and training fees 83,450

3. Other Accessories 3500

4. Running Capital for Two Months 86,660

5. SSI Registration and Other Admin Expense 7,000

Total 1,85,610

12. Net Profit per Year(Rs)

Profit per Month = 11,256

Per Year profit 11,256 x 12 = 1,35,072

Interest for total investment @ 14 % = 25,985(A)

Depreciation of Machineries 10% = 8000 (B)

A+B = 33,985

Net Profit Per year; = 135072 - 33,985 = 1,01,087

Profit margin on Total Investment = 55%

Courtesy of Jayaashree Industries

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