Jayaashree Industries: The Low Cost Sanitary Napkin Maker

By Reshma Kamath, Seoul National University

Throughout the centuries, a plethora of cultural and social taboos have been associated with
menstruating girls and women, as well as menstrual health. In many parts of the world,
women are still not allowed to leave the confines of their homes while menstruating. Deemed
impure and unclean, they are not allowed to venture freely outside their homes.1 Thus,
girls and women are deprived of opportunities in schools, workplaces, and social settings.
In addition, this lack of control over their lives puts women at loss when it comes to gaining
information on cost-effective, affordable menstrual health products. Such women often resort
to horrific means such as repeatedly using the same unsterilized cloth during menstruation,
and using gunny bags or even plastic, instead of sanitary napkins. Due to these unhygienic
preventative methods, women are prey to a host of illnesses and fatalities. For example, out
of every 10,000 women in India, 2000 women die during childbirth due to unhygienic
menstrual practices.2
Although, there is a well-developed sanitary napkin industry in India, with major players
such as Proctor & Gamble, and Johnsons & Johnsons, these sanitary napkins are often
unaffordable to the millions of Indian women living in low-income and under-privileged
communities. This is primarily due to the cost of the sanitary napkins resulting from the use
of expensive machinery and huge profit margins by these brand name companies. Therefore,
this paper focuses on a cost-effective sanitary napkin manufacturing machine through which
women can produce and market bio-degradable sanitary napkins locally.
Founder of the Low Cost Napkin Maker: A High School Dropout
Mr. Muruganandam Arunachalam, a 47 year old high school dropout and founder of
Jayaashree Industries, has proven that hygiene begins at home. After confronting his wife,
who used a dirty rag during her menstrual period, he invested four painstaking years into
developing a new sanitary napkin manufacturing machine. For this innovative device, he was
awarded the National Innovation Foundation's 'Fifth National Grassroots Technological
Innovations and Traditional Knowledge Award by Indian President Shrimati Pratibha Patil 3
The Machine
On average, a large scale production model costs Rs. 3.5 Crores for an initial investment,
however, Muruganandams machine costs approximately Rs. 75,000 to the buyer. 3 This
allows small players including Womens Self Help Groups (SHGs) and budding female
entrepreneurs to effectively use this low cost, easy-to-use sanitary napkin manufacturing
1

MenstrualHygiene:AneglectedconditionfortheachievementofseveralMillenniumDevelopmentGoals,
Oct.2007,Dr.VarinaTjonTenhttp://www.eepa.be/wcm/dmdocuments/BGpaper_MenstrualHygiene.pdf
(accessedJanuary10,2011)
2

NirmalSanitaryNapkinProject.mpg,2011http://www.youtube.com/watch?v=lP8CdeRIt_Q(accessedJanuary10,
2011)
3

NewInventions:JayaashreeIndustries,A.Murunganandam,http://www.newinventions.in/(accessedJanuary10,
2011)

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 generating
enterprise 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

A.Murunganandam:MadeinIndiaSearch:Makethingsbetter,Makebetterthings
http://www.youtube.com/watch?v=_T7qzufEI9U(accessedJanuary10,2011)

Jayaashree Industries: The Low Cost Sanitary Napkin Maker

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 decisionmaking 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.
Qty

Rs.

Defibering M/c

Details

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)

3000

2.

Work Table

2000

3.

Plastic Buckets and Trays

500

Total

5500

5. Required Workers
S.No
1.

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

Nos
4 Workers

A.Murunganandam:MiniSanitaryNapkinMakingMachine(accessedJanuary10,2011)

Salary(Rs.)
7000

Jayaashree Industries: The Low Cost Sanitary Napkin Maker

6. Monthly Administrative Expense

S.No

Expenses

Value (Rs)

1.

Rent

2.

Electricity Bill

750

3.

General Administrative Expenses

1000

Total

2250

500

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

5.

Gum

6.

Packing Covers

15 Sheets

30

1 Kg

110

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%

Jayaashree Industries: The Low Cost Sanitary Napkin Maker

11. Total Investment(Rs)

S.No

Investment Details

1.

Advance for working Place

2.

Machineries, Installation and training fees

3.

Other Accessories

4.

Running Capital for Two Months

5.

SSI Registration and Other Admin Expense

Total

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

Value (Rs)
5000
83,450
3500
86,660
7,000
1,85,610