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written by | October 11, 2021

Starting a Sanitary Napkin Manufacturing Business

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Sanitary napkins are worn by women when menstruating and are a personal care product in high demand for hygiene and comfort. Napkin manufacturing is cheap and a lucrative business model since many women use these products. Sanitary pads are purchased because of their moisture absorption capabilities and are better than cotton pads which are homemade and often not up to the mark. Women don't feel comfortable using cotton pads since it can create a risk for infections but sanitary pads fix this issue.

Did you know?

In 2020, the Indian sanitary napkin business was around US $525.1 million (₹40017.34 million).

How to Start Sanitary Pad Business

Here are the different aspects you must keep in mind when starting your business.

Licences and Registration

There are different state government laws associated with registering a sanitary pad business and these requirements will vary from state to state. The list of licences needed are:

1.Registration of Firm

You can start your company as a small or medium-scale business and register it as a proprietorship firm. Any partnership programs will fall under Limited Liability Partnership (LLP) or a Private Limited Company linked to the Registrar of Companies (ROC).

2.BIS Certification

BIS is the body that sets quality benchmarks and standards for companies engaging in the sanitary pad manufacturing process. The BIS Certification is mandatory and you want to apply for the ISI specification as well, which is IS 5405:1980

3.Trade Licence and GST

A trade licence is required from the Municipal Authority and you need a valid import and export licence if you're planning to sell to international clients. You don't need GST registration but if your annual turnover is more than ₹10 lakhs, you will also have to apply. The IEC, referred to as the Import Export Code, is what you want.

4.Trademark Registration

Trademark Registration is important so that your competitors don't steal from you, and it secures your brand and establishes a firm reputation in the industry.

Also Read: Small Scale Business Ideas with Low Investment

Sanitary Napkin Manufacturing - Business Plan

Setting up a sanitary napkin manufacturing plant will give you a good source of income and once your brand starts growing, you won't be having any trouble attracting clients. Focus on your marketing strategy since you want clients to return and repurchase items. Below are some guidelines on how to go about setting up your sanitary napkin business, including formulating a business strategy for maximum profits.

Digital Marketing Strategy

After the COVID-19 pandemic, most businesses have transitioned to online sales models. You must focus on your digital marketing strategy. Make sure to work with a website designer to build a website for your brand and SEO-optimise it. You can sell your sanitary pad business via social media platforms.

Be sure to engage with your audience and ask for feedback when they try out your products. You can accumulate more sales this way and it's much more effective than simply relying on marketing through traditional means. Another strategy is to get women influencers to try out product samples and ask them to give your brand shoutouts on their social media pages.

Area Requirements

When you're selecting the location to set up and install your sanitary pad manufacturing process, here is what you want to keep in mind:

  • Your sanitary pad manufacturing unit must be set up within a 1000 square feet area and you need to make sure there is a regular water supply, electricity, and provisions for sufficient drainage
  • The location must be well-connected to your target market for ease of logistics.
  • Raw materials should always be readily available in your location and you can divide your area based on operation segments such as production, packaging, and storage.
  • Be careful when selecting an appropriate location and make sure you have the authorisation needed from the government. Don't set up your manufacturing unit illegally and ensure you have the necessary permits for operating in that region.

What Are the Raw Materials Needed?

Raw materials are critical since they influence the whole manufacturing process and therefore, you must choose the right materials to manufacture sanitary napkins. Getting in touch with the right suppliers will help you collect high-quality supplies at wholesale rates or cheaper. If you're buying in bulk, you can negotiate and get discounts from them.The key raw materials you need for your business are 

  • Polypropylene back sheet
  • Cellulose pulp
  • Special absorbent polymer
  • Non-woven fabrics
  • Hot melt seal
  • Hot melt positioning seals 

You need to select the right materials according to your budget, so it doesn't negatively impact the production process. Your production output should be based on the demand for sanitary pads in the market.

Other pieces of equipment you will need besides raw materials are:

  • Packaging units
  • Sealing machines
  • UV-treated steriliser
  • Gumming machines
  • A mixer with a pulveriser

Also Read: Top Work from Home Business Ideas for Homemakers

Top Sanitary Napkins Manufacturers in India

The sanitary napkins manufacturing segment has been captured by top players, which means you need to invest in your marketing and production strategies. Offering your clients unique and high-quality products will help your business stand out. If you plan to partner with other major brands, these are the ones to watch out for.

Jayashree Industries

Jayashree Industries make indigenous sanitary pads for women and they have set up manufacturing units across 23 states. They are considered one of the top sanitary napkins manufacturers in India and they use pinewood fibres to make their products.

Niine Private Limited

Niine Private Limited has been on a mission to improve women's health and hygiene in India and change the way sanitary pads are marketed by 2025. They offer a dedicated line of feminine hygiene products such as dry comfort double-perforated sanitary pads and their signature naturally soft range of napkins. All their sanitary pads are available in different sizes, with the largest being XL. 

Many more players in the industry are competitors such as Carmesi, Purganics, and Saathi.

Conclusion

Now that you have the step-by-step process of setting up a sanitary napkin manufacturing unit in India, it's time to get started. Be sure to carefully formulate a business plan according to your budget and choose the right location.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Are eco-friendly sanitary pads available?

Ans:

Yes, many manufacturers are coming together to produce a lineup of biodegradable and eco-friendly sanitary pads for women. These are sold at affordable rates and the term 'green pad' is used for marketing them.

Q: How much profit margin can I expect to make from my sales?

Ans:

You can expect to make a profit margin of 30 to 40% on your total number of sales.

Q: What is the average sale price per sanitary napkin packet?

Ans:

The average selling price should be set to ₹20 per packet. Throughout the manufacturing process, other production costs will be involved, like raw materials, labour wages, salaries, etc.

Q: How much can I expect to earn from my sanitary pad business monthly?

Ans:

You can make anywhere between ₹70,000 to ₹1 lakh per month from your sanitary napkin business. The minimum investment needed to start is ₹15,000 for the smallest project cost.

Q: Are there any loans available for sanitary pad manufacturers in India?

Ans:

Yes, loan schemes are available for upcoming sanitary pad manufacturers in the country. The two most popular schemes are - the Stand-up India Loan scheme and the Pradhan Mantri Employment Generation Scheme.

Q: What is the cost of a semi-automatic sanitary pad machine?

Ans:

A semi-automatic sanitary pad machine will cost you between ₹2 lakhs to ₹5 lakhs

Q: Do I need VAT or GST registration for my sanitary napkin business?

Ans:

There is no need for VAT or GST registration if your sanitary napkin business has an annual turnover of fewer than ₹10 lakhs, and it is best to label your company as a proprietorship firm in such cases.

Q: How many sanitary pads should I aim to manufacture in a day?

Ans:

Your per day production goal should be 1500 napkins daily. No less than that; otherwise, it becomes difficult to distribute and hit sales targets.

Q: How much investment do I need to become a sanitary pad manufacturer in India?

Ans:

If you're a small-scale woman entrepreneur who wants to start a sanitary napkin manufacturing business in India, you will need a minimum investment of ₹1 lakh. It considers labour costs, the cost of buying new equipment, work tables, and other essentials.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.