Figure1:TECHNOLOGYOPTIONSFORSANITARYNAPKINPRODUCTION

P u l v e r i s a t i o n
C o r e f o r m a t i o n

Domestic mixer Lowcostcapactity atatime 200g Muruganandam/WOMA NModel500gatatime 1HPmotor

Gandhigrammodel1/2 Girugambakkama HPmotorcapacity2 highcapacity,silent kg model.Costeffective

Simplediepress. Leastcostmodel Footpressdie Muruganandammodel

Gandhigram modelmulti napkinpress,(4) handoperated

WOMANNGOHAS Pneumaticdiepress withmultiplenapkin pressed4/6

GIRUGAMBAKKAMMODELSofCOREFORMATION

S E A L I N G

s t e r i l i s a t t i o n

Girugambakkam fabricatedsealing machine.3waysealing

Dryautoclave

WOMANNGOUV STERILISINGMachine

Sterilisingmachine

P a c k i n g

VariousTechnologyoptionsforProductionofSanitaryNapkins.

BasicProductionProcess:BasicallytheproductionofSanitaryNapkinsinvolvethe followingstages.
Figure2:

Theaboveproductionprocessisthesameforalltechnologiesbeitmanualprocessesorinvolving automation.

Step1:Pulverisation:Inthisprocess,thewoodpulpispulverizedusingapulverizingmachineat
high speeds to make it voluminous and thus absorbent. Currently most sanitary napkin production processesusethemajorabsorbentlayerastheWoodPulp.Thisstepisonewheremanualprocesses have not been used. But automation can be carried out in a centralized place where pulverized wood pulp can be safely transported to smaller production units if access to power is a problem in remoteruralareas.SomeofthewoodpulpalsocontainsSuperAbsorbentPolymer(SAP)Gel. Machines used: High end pulverizers are available for large scale volumes. But for a small but efficient unit, an ordinary kitchen mixie (dry grinding machine) can also be used. They are handy, saferandwomenarealreadyaccustomedtoitsuseunlikeheavypulverizers.Anotheradvantageofa mixie is that they can be operated with less power (700 Watt) as opposed to 1HP or 2 HP motor fitted machines which require higher electricity and also a good voltage level. During the process of pulverizing wood pulp, to increase the absorbing capacity of the napkin some times, 1% Super Absorbent Polymer (SAP) is also added. This increases the absorbent capacity of the napkins dramatically.

Step2:CoreFormation:
Once thewoodpulpispulverized,layersofabsorbentmaterialarearrangedandtheabsorbentcore is made. There have been many variations in the formation of the core with most units visited used only wood pulp which is the cheapest option to cut the cost of production. But to increase the comfort levels of the napkin, layers of cotton is also added (Thiruvidanthai Unit, Kancheepuram District, Tamilnadu) along with the wood pulp. Additionally a gel pad is also added as the third layer to have better quality of the napkin. The quantity of the absorbent layers vary according to the qualityofthenapkinpad.Foraregularpad,8gramsofwoodpulpisusediftheonlyabsorbentlayer is only wood pulp. If other layers like cotton pad and gel pad are also used, then the quantity of the layersisadjustedaccordingly..Anoptimum, goodqualityabsorbentlayerismadeof4gms ofWood Pulp,4gramsofcotton,and4gramsofabsorbentgelpad.Howeverforpostmaternitypads(belted pads) higher quantitiesareused(15gramsofwood pulp per pad). Thewood pulp ispackedintothe Coreformingdieusingmanualpressesoracoreformingmachine.Layersofprecutcottonlayer,gel pad are arranged above that. An impermeable layer is placed at the bottom. In some cases the impermeable bottom layer is secured using Super Glue to the above layers (Machinery from Jayashree Industries, Coimbatore: MSSRF Unit, Pondicherry). The layers of Gel pad, impermeable layer are to be cut in the standard sizes. Either they can be cut using a die cut machine or they can becutmanually.

Step3:CoveringLayer:
Once the absorbent layers are formed they need to be covered to secure the layers properly. This is done by inserting the layers into the covering layer which is either stitched or sealed by a Napkin finishing machine where the core layer is sealed using a heat sealing machine. Additional to the outer layer, one unit (Thiruvidanthai Unit, Kancheepuram District, TN) use an extra layer to secure the core layer. This is being done to ensure that the wood pulp and other absorbent layers does not move to the sides of the pad during transporting, handling, sorting etc.. Once the wood pulp moves tothesidesduringhandling,thesanitarynapkinfails.Topreventthis,thecorelayeriscoveredbyan extralayerofnonwovenpermeablelayer.

Step4:AccessoriesFormation
For belt less and Wings model sanitary napkins, once the napkin is formed with the outer layer, to mark the absorbent layer for identification, super glue is applied on the bottom side (with the non permeable layer at the bottom) and a release sheet is affixed as a marker. For belt less napkins, whenthereleasesheetisremoved,thenapkincanbeusedwithasapantyliner.

Step5:Sterilizing
Thefinishednapkinsaresterilizedforremovalofanyharmfulbacteriaorinfectiousgerms.Thereare twomethodsofsterilizing.

1. Autoclaving: In this process, the finished sanitary napkins are loaded into the dry autoclave
(ahotoven).Thenapkinsareheated110degressCelsiusforatimeof20minutes.Ina16x 16sizeautoclave,about100napkinscanbesterilizedatatime. 2. UV Irradiation: In this method, the napkins are kept in a UV chamber and subjected to UV irradiation for about 3 minutes. Though this is a faster method, only few sanitary napkins canbeloadedatatimeasstackingtoomanynapkinswillbeineffective.

Step6:Packaging:
Post sterilization, the napkins are immediately packed in covers. Normal packaging is either 8 napkins or 10 napkins. If the napkins are to be sold per piece, a small packing is done. Polyethylene is used for the packing of finished napkins in order to prevent the napkins from reabsorbing moisture. Single napkins are used in Napkin vending machines where napkins can be vended by dropping a Rs.2 coin into the machine. It has also been found that in rural areas, where women prefer to buy napkins in loose, single napkin packaging is a better option as women may find it unaffordabletobuyapacketof8or10napkinsatatime.

1.

BreakEvenAnalysisofVariousCaseStudies

1.1 Thelowinvestment,bettertechnologyModel.CaseStudyofAkshaya Unit,ThiruvidanthaiVillage,KancheepuramDistrict,Tamilnadu. (InvestmentrequiredRs.88,500)

TheAkshayaSanitaryNapkinProductionUnitislocatedinThiruvidanthaiVillageontheECRRoadto ChennainearKovalaminKancheepuramDistrict,Tamilnadu.Theunitemployssixwomenanda mastertailorwhoalsoworksinaTailoringunitrunbythesameFederation.ThemasterTailorhelps thewomenincuttingthelayersinuniformsize,inhelpingthewomenfortheproductionofthe Wingsmodelofsanitarynapkinswhichtheyhavestartedrecently.Theunitissupplyingsanitary napkinsto13schoolsnearbyandhaveinstallednapkinvendingmachinessponsoredbytheTVS CompanyLtdunderShriCheemaFoundationundertheirCSRinitiative.

FINANCIALANALYSIS

SANITARYNAPKINPROJECTCOST
S.no. Itemofexpense Units Machinedescription Amount Rs.) (in

Fixedcost A.1Weighingscale A.2Pulveriser/mixer/drygrinder

1 1

1g10kg.NationalDigital Any simple model mixer fordrygrinding Dryautoclave16*16 Premier ForHotsealing

3500 2000

A.3Sterilisingmachine A.4Handsealingmachine A.5.ironbox A.6ancillaryinstruments Scissors, trimmers, inch tapes, pattern sheets, hand press machine dies,plasticscales,records,,

1 2 1

13600 2300 600 3000

A.7: Semi Machine

Automatic

Sewing 1

8000

Tables, storage electrification

racks,

10000

TOTAL

Rs.43,000

Withaproductionof1000napkins/day(125packetsof8napkins/pack),followingistheinitial startupquantityofrawmaterialsrequiredforaunit. Initialstartuprawmaterialinvestment S.n o. 1 2 3 4 Itemofexpense Qty Units Rate Amount(inRs.)

Woodpulp50kg Gelpowder3kg Nonwovenblue Nonwovenspunbond

50 3 300 1000

Kg. Kg 300mroll 1000m

Rs.60 Rs.600 8.3 10

Rs.3,000 Rs.1,800 Rs.2,490 Rs.10,000

5 6 7 8 9 10 11

Releasingsheet1ream Gum2kg Cottonrolls50 Gelpad300m Nonwoveninnerwrap LDsheetpacking5kg. PackingPolyethylenecovers

1000 2 50 300 1 5 3125

sheets Kg. Kg. M Kg. Nos.

0.8 140 100 16 1900 195 1

Rs.800 Rs.280 Rs.5,000 Rs.4,800 Rs.1,900 Rs.975 Rs.3,125

TOTAL

Rs.34,170
Roundedoffto:Rs.35000/

RawMaterialCosts/Napkin. VARIABLECOSTS/NAPKIN s.no. HeadofVariablecost Variable Cost/napkin (Rupees) 0.55 0.35 0.1 1

Variablecost 1 Absorbentlayer 2 Coveringmaterial 3 Gum+adhesivesheets

TOTAL.VariableCosts(VC)./napkin

ProductionVolume: Theunitmakesanaverageof1000napkinsday,whichmeansinamonthof25workingdays,the productionis1000x25days=25000napkins.WithavariablecostofRs.1/napkin,therawmaterial costsisRs.25000/month. Monthlyrawmaterialcosts@Rs.1x25000napkins MonthlyAdministgrativeExpenses. Rs.25000

Rent,power,Maintenance Labour:6women@100/day+Parttimesuperviser TotalExpenses/month WORKINGCAPITAL(Rawmaterialcosts+MonthlyAdminexpenses) TOTALINVESTMENTREQUIRED(WORKINGCAPITAL+EQUIPMENT)

Rs.2500 Rs.18000 Rs.20500 Rs.45500 Rs.88,500

ToarriveattheFixedCostspermonth,normalratesofinterest(ROI)appliedis18%.Asaspecial case,lowerROIsarealsoprojectedincasetheMinistryofHealthcomesforwardtosubsidizethis. Thustwoscenariosof7%ROIand5%ROIarecalculated. FixedCosts 18% TotalMonthlyexpenses/month InterestonCapitalEquipmentpermonth InterestonWorkingcapitalpermonth Depreciation@10%/month TotalMonthlyFixedCosts(FC) 20500 645 683 358 22186 12% 20500 430 455 358 21743 ROI 7% 20500 251 265 358 21375 5% 20500 179 190 358 21227

FC/NAPKINS VC/NAPKIN Cost/napkin BreakEvenProductionVolume(BEPV)1

0.89 1.00 1.89 887

0.87 1.00 1.87 870

0.85 1.00 1.85 855

0.85 1.00 1.85 849

Forthequalityoftheproduct,thiswasthebestoftheunitsvisitedasperthestudy. 1 BreakEvenProductionVolumeiscalculatedusingtheformula: BEPV=FixedCosts{Contribution/napkin}whereContributionisdefinedas SalePriceVariablePrice.

1.2 UnitsetupwiththemachineryfromM/s.JayashreeIndustries, Coimbatore.:UnitofMSSwaminathanResearchFoundation, Pondicherry.:(Investmentrequired:Rs.1.55lakhs)

This is a unit set up with the sponsorship of the Dr.MS Swaminathan Research Foundation, in Puducherry.. This unit is located on the VillianurPathukkannu Road, in Puducherry at the village of Olaivaikkal. The unit has 5 women employed by the SHG Federation promoted by MSSRF. The unit has all the machineries installed by M/s. Jayashree Industries, Coimbatore, Tamilnadu. The unit has the following machinery. With the machinery costing about Rs.1.10 lakhs and with an approximate working capital requirement of Rs45000/ the total investment required is around Rs.1.55 lakhs. In thecalculationofprofitanalysiscurrentproductionvolumesonlyaretakenintoaccount.Asperthe machine manufacturers, the daily production capacity is 1440 napkins but the unit was producing a maximum of only 500 napkins / day. One difficulty faced by the women was in the operating of the footoperatedcoreformingmachine.Foreachnapkin,anaverageofthreestampingsarerequiredto formthecorelayer.Forabout1000(or1440asmentionedbythemachinemanufactures),awoman hastostampthemachineaminimumof3000timesperday.Womenfindthisthemostdifficulttask andhenceamuchdecreasedproductionrate.

FinancialAnalysis.
CAPITALEQUPMENT No. 1 2 3 4 5 6 7 8 9 DefiberingM/c CoreformingM/c NapkinFinishingM/c UltraVioletTreatmentUnit Otheraccessories(Storageetc.) WeighingScale(ToWeighWoodPulp) WorkTable PlasticBucketsandTrays,minortoolsetc. Transportofmachinery,erection,electricalworketc. Total Details Qty 1No 1No 1No 1No 1 2 Rs. 20,500 5,800 28,500 10,400 10,000 3500 10000 1000 20,000 109,700 Roundedoffto:Rs.110,000/

 RawMaterials ThemainNewMaterialusedforSanitaryNapkinmanufacturingisthesameastheonedescribedin 5.1. WoodFiber(Pulp) ThermoBondedNonwoven(forOuterlayer) PolyEthyleneFilm(Nonpermeableforbottom). ReleasePaper SuperGlue LLDPE50GSMPackingCover (RAWMATERIALREQUIREMENT)/DAY Liketheearliercasestudy,therawmaterialcost/napkinsistakenasRe.1pernapkin. Production/month@500napkinsday No.ofwomenemployedintheunit Paymenttowomen/Wages4womenx Rs.100/dayx25days. SupervisionCosts Rent,EB,Adminexpenses Totalmonthlyexpenses WorkingCapitalrequirement/month Rawmaterialcosts:12500napkinsxRs.1 MonthlyAdminExpenses TotalWorkingCapitalrequired TotalInvestment Rs.12,500.00 Rs.16,000 Rs.28,500.00 Rs.1,38,500.00 12500 4 10000

Rs.3,000 Rs.3,000 Rs.16,000

Note:Withaminimumof1000napkinsperday,theWorkingCapitalRequirementswillbeRs.45000 aproxandthusTotalInvestmentrequiredwouldbeRs.1.55lakhs.

ROI

FixedCosts
MonthlyAdminExpenses InterestonEquipment

18% Rs.16,000 Rs.1,650.00

12% Rs.16,000 Rs.1,100.00

7% Rs.16,000 Rs.641.67

5% Rs.16,000 Rs.458.33

InterestonWorkingCapital DepreciationonEquipment@10% TotalFixedCosts FC/NAPKINS VC/NAPKIN ProductionCost/napkin BreakEvenProductionVolume/day

Rs.427.50 917 Rs.18,994 Rs.1.52 1.00 2.52 760

Rs.285.00 917 Rs.18,302 Rs.1.46 1.00 2.46 732

Rs.166.25 917 Rs.17,725 Rs.1.42 1.00 2.42 709

Rs.118.75 917 Rs.17,494 Rs.1.40 1.00 2.40 700

OnecanseethattheproductioncostismuchhigherthanthesalepricewhichisRs.2.00.Forthisunit tobreakeven,itshouldproduceaminimumof760napkinsperday.HoweverforlowerROI,thiscan be less as indicated in the table above. The basic problem of this unit is low productivity, inappropriate machinery which is the foot operated core forming machine which the women find it difficult to operate. With a hand operated core forming machine and increased productivity per woman,thisunitcaneasilyreachaproductivityofabout850napkins/day.

1.3 GandhigramModel,Dindigul.(Investment:Rs.2.10lakhs)

Gandhigram Trust is a well established social service institution with a rich commitment for developing people friendly affordable technology with continuous, participatory R&D work with grassrootleveltechnologydissemination.Gandhigramhaddevelopedanappropriatetechnologyfor productionofsanitarynapkinsandtheyhavebeensuccessfulinproducingverygoodqualitysanitary napkins on par or even better than high cost sanitary napkins from leading MNC brands like Whisper, Kotex etc. The details of the unit which is being run by an SHG Federation supported by Gandhigram are given below and a business model of its working has been attempted at. The machinery has been fabricated at the Gandhigram Rural Workshop and this machinery has been successfully installed in many areas in Tamilnadu, Chattisgarh, Uttaranchal etc. The capital investment is about Rs.1.57 lakhs and the working capital requirement of about Rs.55,000/ the total investmentrequiredfortheunitwouldbeaboutRs.2.10lakhs. CAPITALINVESTMENT:MACHINERY. No. 1 Details WoodpulpGrindingmachine/Pulverizerwithmotor. Drumsize:2x1SSDrumwith2mmmetalsheet,Top coverand18GSideCover 2 CoreformingNapkinPressingMachinewithStand 1No (Handoperated:4piecesatatime) 3 4 DieSets:7 DieSets:9 2No 2No 3,000 3,500 25,500 1No 49500 Qty Rs.

Sealingmachine:Impulsesealerwithtimeandheat controller Otheraccessories(Storageetc.) WeighingScale(ToWeighWoodPulp) WorkTable PlasticBucketsandTrays,minortoolsetc. DryautoclaveforSterilizingthepads:16x16 Transport,Installation,Electricalworksetc. Total

1No

17,000

5 6 7 8 9

1 2 1

10,000 3500 10000 1000 13,600 20,000 156,600 Roundedoff:Rs.1,57,000/

RawMaterials:Sincetherawmaterialsarethesame,pleaserefertoearlierunits/sections. No.ofnapkins/day Items RawmaterialCosts:Rs.1.00/napkin LabourCosts@Rs.0.40pernapkin. TotalVariableCosts.

30000 Amount.(Rs.) 30,000.00 12,000.00 Rs.42,000.00 Amount(Rs.) Rs.42,000.00 Rs.10,500 Rs.52,500.00 Rs.2,09,500.00

WorkingCapitalrequirement/month totalVariableCosts@xRs.1.40 MonthlyAdminExpenses TotalWorkingCapitalrequired TotalInvestment(WorkingCapital+EquipmentCosts)

VariableCosts/Napkin SalePrice Contribution/Napkin.

Rs.1.40 Rs.2.00 Rs.0.60

ROI FixedCosts MonthlyAdminExpenses InterestonEquipment InterestonWorkingCapital DepreciationonEquipment@10% TotalFixedCosts FC/NAPKINS VC/NAPKIN ProductionCost/napkin BreakEvenProductionVolume/day

18% Rs.10,500 Rs.2,355.00 Rs.787.50 1308 Rs.14,951 Rs.0.50 1.40 1.90 997

12% Rs.10,500 Rs.1,570.00 Rs.525.00 1308 Rs.13,903 Rs.0.46 1.40 1.86 927

7% Rs.10,500 Rs.915.83 Rs.306.25 1308 Rs.13,030 Rs.0.43 1.40 1.83 869

5% Rs.10,500 Rs.654.17 Rs.218.75 1308 Rs.12,681 Rs.0.42 1.40 1.82 845

GivenaboveisthedetailedProfitanalysisatvariousROIsandvariousproductionvolumes.With theunitproducing1200napkins/daywhichisthecurrentrateofproduction,thefiguresare givenashighlighted. Gandhigrammodelisfoundtobeagoodmodelandwomenfinditeasiertoworkwiththecore formingmachinewhichisahandoperatedmachine.Themachinecanform4napkinsatatimeafter thenapkinsarewrappedinnonwovenfabricandhotpressedatthecentre(insteadstitchingan outerlayerandinsertingthelayerintotheoutcover)tosecurethelayersandthenalsosealedatthe sides.ThewomenalreadygetadecentwagestructureofRs100toRs.120perdayonpieceratebasis attherateofRs.0.40pernapkin.Oneoftheobviousproblemswithusinghighpoweredmachinery wasfelthereasthewomensaidthatlowvoltagewascausingproblemsforthemachineryandthey hadtogetthemachineryrepaired).LiketheMSSRF(JayashriIndustrymodel),herealsotheyuse onlywoodpulpastheabsorbentmaterialwiththeSuperAbsorbentPolymerwhichispremixedin thewoodpulp.Theworkmanshipwasfoundtobegood.Gandhigramhasalreadyinstalledafew machinesoutsideTamilnadu.

1.4 JayashreeIndustries,Coimbatore:HigherInvestmentModel (Investment:Rs2.79lakhs)

Mr.MurugananthamofJayashriIndustries,Coimbatorehavebeensupplyingmachineryforsanitary napkinproductionandisawellknownentrepreneur.Overaperiodoftime,themachineryhave beenimprovedandthismodelanalysedhereisbasedonapneumaticcoreformingmachinewhich canproduce6napkincoresatatime.With6womenwhowouldmake250napkinsperday,the monthlyproductionwouldbe37500napkins.WithaboutRs2.15lakhsforthemachineryand installationandwithonemonthsworkingcapitalrequirementofaboutRs.64,000/thetotal investmentrequiredwouldbeaboutRs2.79lakhs

S.No 1 2 3

Description DefiberationMachine SofttouchsealingMachine BeltnapkinMakingmachineLength sealing. Beltnapkinmakingmachinesidesealing PneumaticCoreformingMachine Aircompressor CoreDies UVTreatUnit VAT12.5% PackingandHandlingcharges InstallationandTrainingFees Transporting,erecting,electricalwiring etc. Otheraccessories(Storageetc.) WeighingScale(ToWeighWoodPulp) WorkTable PlasticBucketsandTrays,minortools etc. Total

Unit 1 1 1

Rate 20,200 28,000 20,500

Total 20,200 28,000 20,500

4 5 6 7 8

1 1 1 2 1

17,500 25,500 18,000 1,875 10,400

17,500 25,500 18,000 3,750 10,400 17,981 2,500 3,000 22,500

1 2

5000

10,000 3500 10000 1000

214,331

Roundedoffto:Rs.2,15,000/ RawMaterials:Sincetherawmaterialsarethesame,pleaserefertoearlierunits/sections. Items RawmaterialCosts:Rs.1.00/napkinx37500napkin/month

Amount(Rs.). 37,500.00 1500

QuantumofProduction:

No.ofwomenemployedintheunit Paymenttowomen(6womenxRs.100x25days) SupervisionCosts Rent,EB,Adminexpenses Totalmonthlyexpenses WORKINGCAPITAL/TOTALINVESTMENTREQUIRED. WorkingCapitalrequirement/month TotalRawMaterialCosts MonthlyAdminExpenses TotalWorkingCapitalrequired TotalInvestment(WorkingCapital+Equipment) ROI

6 15000 Rs.6,000 Rs.5,500 Rs.26,500

Rs.37,500.00 Rs.26,500 Rs.64,000.00 Rs.2,79,000.00

FixedCosts
MonthlyAdminExpenses InterestonEquipment InterestonWorkingCapital DepreciationonEquipment@10% TotalFixedCosts FC/NAPKINS VC/NAPKIN ProductionCost/napkin BreakEvenProductionVolume/day

18% Rs.10,500 Rs.2,355.00 Rs.787.50 1308 Rs.14,951 Rs.0.50 1.40 1.90 997

12% Rs.10,500 Rs.1,570.00 Rs.525.00 1308 Rs.13,903 Rs.0.46 1.40 1.86 927

7% Rs.10,500 Rs.915.83 Rs.306.25 1308 Rs.13,030 Rs.0.43 1.40 1.83 869

5% Rs.10,500 Rs.654.17 Rs.218.75 1308 Rs.12,681 Rs.0.42 1.40 1.82 845

TheabovetableshowstheBreakEvenProductionVolume,ProductionCost/napkinforvarious ROIs. Note:Withtwoshifts,thesameunitcanimproveitsefficiencymuch. Observation: Thepneumaticcoreformingmachineisdefinitelyanimprovementoverthefootoperatedmachine bythesamemachinemanufacturer.Buttheaddedincreaseintheequipmentcostsisconsiderable

sincepneumaticmachinealsorequiresacompressortoworkwith.Thecapitalcostsisgoingup,and alsomachinerymaintenancecostswhichisnotenvisagedhere.Oneoptiontoincreasethe profitabilityoftheunitwouldbetoincreasethenumberofwomenintheunitsothatproduction goesup.Thiscanbedonebyhavingmorespaceforincreasednumberofwomenorelsetohavetwo shiftsofwomenworkinginthesameunit.Withincreasedmachinery,theonlyoptiontohavebetter profitabilityistoincreasethenumberofwomen.

1.5 HighinvestmentNapkinProductionUnit:WomenNGO, Trichy/Pudukottai.(ValueofInvestment:

WomenNGOisrunning7sanitarynapkinproductionunitsinTamilnadu.Thisstudyisbasedon discussionwiththeChairpersonoftheNGOandfromdetailsprovidedbyherthroughatelephonic discussion.Actualequipmentwiseexpenditureswerenotavailableandthustheanalysisisbasedon somegeneralassumption.

Model1:TotalInvestment:Rs.3.15lakhs
QuantumofProduction: No.ofwomenemployedintheunit Paymenttowomen 2800napkinsperday. 12 PieceRateof Rs.0.50/napkin. Rs.5000 Rs.15,200/month+ Rs.5000=Rs.20,200/.

SupervisionCosts MiscellaneousFixedMonthlyExpenses(Rent,Power,othermisc. expenses)+SupervisionCosts

Unlikeothermodels,thepaymentisbasedonproductionofnapkinsperdayandinreality,initial productionvolumeswillbelessinthebeginningandastimegoes,skillwouldimproveandthe productionvolumeswouldgoup.Theabovefigureof2800napkins/dayisthestabilizedaverage productioncapacityoftheunit. Withtheabovedetails,aroughBreakEvenCalculationisarrivedasgivenbelow. Sl.No. 1 2 3 4 5 6 Equipment Pulverizer: PneumaticCoreFormingMachine:6piecesatatime. SealingMachines,Minortools. UVSterilizer VAT@4% ErectionCosts/ElectricalWiringetc. 7000.00 8000.00 Cost 175000.00

Total

Rs.190000.00

VariableCosts No. 1 Items RawmaterialCosts:At2800Napkins/dayx25days: 70000napkinsxRs.1/napkin LabourCosts@Rs.0.50x70000napkins. TotalVariableCosts. Amount. 70,000.00

2 3

35,000.00 Rs.105,000.00

VariableCosts/napkin=Rs.1.50. WorkingCapitalrequirement/month totalVariableCosts@70000napkinsxRs.1.50 MonthlyAdminExpenses TotalWorkingCapitalrequired TOTALINVESTMENTREQUIRED(WorkingCapital+Equipmentcosts) ROI FixedCosts MonthlyAdminExpenses InterestonEquipment InterestonWorkingCapital DepreciationonEquipment@10% TotalFixedCosts FC/NAPKINS VC/NAPKIN ProductionCost/napkin BreakEvenProductionVolume/day 18% Rs.20,200 Rs.2,850.00 Rs.1,878.00 Rs.1,583.33 Rs.26,511 Rs.0.38 1.50 1.88 2121 ROI 7% Rs.20,200 Rs.1,108.33 Rs.730.33 Rs.1,583.33 Rs.23,622 Rs.0.34 1.50 1.84 1890 Rs.1,05,000.00 Rs.20,200 Rs.1,25,200.00 Rs.3,15,200.00 ROI 5% Rs.20,200 Rs.791.67 Rs.521.67 1583.33 Rs.23,097 Rs.0.33 1.50 1.83 1848 12% Rs.20,200 Rs.1,900.00 Rs.1,252.00 1583.33 Rs.24,935 Rs.0.36 1.50 1.86 1995

Withthecurrentproductioncapacityof2800napkins/dayor70000napkins/month,theBEPV, Profit,ProductionCost/napkinetc.givenabove.

Model2:TotalInvestmentofRs.4.75lakhs.
QuantumofProduction:(1000kgofwoodpulp With8gmsofwoodpulp/napkin. No.ofwomenemployedintheunit Paymenttowomen: 5000napkinsperday. 20 PieceRateof Rs.0.50/napkin. Rs.5000 Rs.15,200/month.

SupervisionCosts MiscellaneousFixedMonthlyExpenses(Rent,Power,othermisc. expenses) BreakEvenCalculationisarrivedasgivenbelow. Sl.No. 1 2 3 4 5 6 7 Equipment Pulverizer: PneumaticCoreFormingMachine:6piecesatatime. SealingMachines,Minortools. UVSterilizer VAT@4% ErectionCosts/ElectricalWiringetc. Total

Cost 250000.00

10000.00 8000.00 Rs.268000.00

VariableCosts(IncludinglabourCosts) No. 1 Items RawmaterialCosts:At5000Napkins/dayx25days: 125000napkinsxRs.1/napkin LabourCosts@Rs.0.50x70000napkins. TotalVariableCosts. Amount. 125,000.00

2 3

62,500.00 Rs.187,500.00

VariableCosts/napkin=Rs.1.50. ROI

FixedCosts

18%

12%

7%

5%

MonthlyAdminExpenses InterestonEquipment InterestonWorkingCapital DepreciationonEquipment@10% TotalFixedCosts FC/NAPKINS@5000napkins/day VC/NAPKIN ProductionCost/napkin BreakEvenProductionVolume/day

Rs.20,200 Rs.4,020.00 Rs.3,115.50 Rs.2,233.33 Rs.29,569 Rs.0.24 1.50 1.74 2366

Rs.20,200 Rs.2,680.00 Rs.2,077.00 Rs.2,233.33 Rs.27,190 Rs.0.22 1.50 1.72 2175

Rs.20,200 Rs.1,563.33 Rs.1,211.58 Rs.2,233.33 Rs.25,208 Rs.0.20 1.50 1.70 2017

Rs.20,200 Rs.1,116.67 Rs.865.42 Rs.2,233.33 Rs.24,415 Rs.0.20 1.50 1.70 1953

With the current production volume of 5000 napkins /day, and with different ROI scenarios, the Productioncost,profitetcisgiveninthetableabove.

1.6 HaryanaModel:(TotalInvestment:Rs.57,000)
The NRHM Haryana has set up SHG based sanitary napkin production units which produced the Mukti brand sanitary napkins. This analysis is based on the presentation given by the Haryana team in the Orientation workshop for State NRHM Nodal Officers in Chennai on 2nd & 3rd November 2010.Thismodelisahighlysuccessfuloneandaltogether120unitshavebeensetupwitheachunit employingonly3women. Machinery/EquipmentfortheSanitaryNapkinProductionUnit. Most of the operations carried out are manual processes. This unit uses ready to use wood pulp pads which are cut into the standard sizes. Therefore there is no need for a pulverizer for the unit. Following are the equipment being used in the unit. The machinery procured by this unit is extremely cheaper compared to other units as they have the advantage of having their location very neartomajorequipmentmanufactures. 1. DryOven:Forsterilizingthenapkins. 2. ElectricCutter:Forcuttingthepads,sheets. 3. ElectricCeilingMachine:Forsealingthepads,packs. 4. ElectricIron:Forwingsmodelnapkins. 5. Simple&ZigzagScissor: 6. Big&SmallTables 7. MeasuringTape/Scale 8. Gloves,Masks&Aprons Costofmachinery. Machine/Equipment SealingMachine CuttingMachine Sterilizer/DryAutoclave(14x14) Nos. 2 1 1 Rate 1150 4900 4500 Cost(InRs.) 2300 4900 4500

Electriciron Stand Table Total RawMaterialsandtheircostingpernapkin. Material Quantity

2 1 1

1000 4000 3000

2000 4000 3000 20700

Rate (InRs.)

CostperNapkin

GelPaper WoodPulp MicroDot ReleasingSheet BarrierFilm Glue Envelope Wastage MarketingExpensesetc. Transportation VatTax

Perkg. Perkg. Permtr. Perseat Perkg. Perkg. PerEnvelope

87 88 7.45 4 120 100 0.75 TotalVariableCosts/napkins

0.26 0.26 0.37 0.03 0.03 0.02 0.08 0.02 0.05 0.07 0.05 1.24 Rs.1.25

Roundedoff

The wood pulp sheets are costlier than the wood pulp, but the unit gains by reduction of labour as well as pulverizer. Each unit makes 20,000 pads per month with only 3 women /unit which means with three women, the daily production capacity is 800 napkins per day. Since wages was not specified (other than a margin of Rs.0.65), it is assumed that the women get a minimum wages of Rs.0.50 per napkin. The napkins are sold for Rs.1.90 per napkin. There is a social marketing cost of Rs.0.25 which makes the total cost to be Rs.2.15 out of which NRHM gives a subsidy of Rs.1.0 and the consumer gets the product for Rs.1/napkin. The social marketing cost is not considered here in thefinancialanalysisanditisnotpartoftheproductionexpenses.

DailyProduction Workingdays/month MonthlyProduction(800napkinsx25days) RawMaterialCost/napkin AssumingLabourchargesofRs.0.50/napkin:VariableCost TotalVariableCost/month

800 25 20000 Rs.1.25 Rs.1.75 Rs.35000 VariableCost/napkin:Rs.1.75

FixedCosts. Asperthepresentation,asofdate,therehasnotbeenanyfixedcostsfortheunitsastheunitsare operatingfromcommonplacesorindividualhouses.Butforabusinessplan,itisnecessarytofix someminimalrent,electricitychargesetc.sothatitdoesnotbecomeaburdenforthecommunity oranyindividual.Aminimalprojectionisgivenbelowtakingintoaccountnoexpenditureisincurred atpresent. MonthlyAdministrativeExpenses. S.No 1. 2. Rent Electricity&othermiscellaneouscharges. Total Expenses Value(Rs) 1000 200 1200

WorkingCapitalrequirement/month totalVariableCosts@xRs.1.50 MonthlyAdminExpenses TotalWorkingCapitalrequired TOTALINVESTMENTREQUIRED ROI Rs.35,000.00 Rs.1,200 Rs.36,200.00 Rs.56,900.00

FixedCosts
MonthlyAdminExpenses InterestonEquipment InterestonWorkingCapital

18% Rs.1,200 Rs.310.50 Rs.543.00

12% Rs.1,200 Rs.207.00 Rs.362.00

7% Rs.1,200 Rs.120.75 Rs.211.17

5% Rs.1,200 Rs.86.25 Rs.150.83

DepreciationonEquipment@10% TotalFixedCosts FC/NAPKINS VC/NAPKIN ProductionCost/napkin BreakEvenProductionVolume/day

173 Rs.2,226 Rs.0.11 1.75 1.86 594

173 Rs.1,942 Rs.0.10 1.75 1.85 518

173 Rs.1,704 Rs.0.09 1.75 1.84 455

173 Rs.1,610 Rs.0.08 1.75 1.83 429

TheunitsellsthenapkinatarateofRs.1.90andafterdeductingthevariablecostsofRs.1.75,the unitgetsRs.0.15pernapkintowardsmargin.ThevariousBEPVolumesaregivenabove.Thuswith theabovefigures,theunitneedtoproduceatleast594napkinsperday(ROI:18%)tobreakeven and518,455and429napkins/dayat12%,7%and5%ROIsrespectively.. Theprofitabilityofthisunitcanbeconsiderablyimprovedbyhavingmorewomenworkingina uniteitherinthesameshiftorintwoshiftssothattheburdenofthefixedcostsarereducedper napkinandtherebygivingahigherprofitability.

1.7 Girugambakkam Unit, Chennai: Low Investment mechanized Unit.(Rs.1.88lakhs)

TheGirugambakkamUnitisbeingrunbyMrs.NagalakshmiwhohasbeenextensivelytrainingSHGs inTamilnadu.Sheisaverygoodentrepreneurandhasbeeninnovatingthesanitarynapkin productionprocessesbysimplebuteffectivemachinerywhichweregenderfriendly,lowcostand easytooperate.ThisunitwasstudiedaspartoftheNHSRCOrientationworkshopheldatChennai andtheanalysisisbasedondiscussionwithMrs.Nagalakshmiwhoisrunningtheunit. Machinery/EquipmentusedintheUnit. Machine/Equipment Nos. Rate Cost(In Rs.) 13500 5000 13000

Pulverizer:5Litrecapcity CentralSealingMachine HandoperatedCoreFormingmachinewith dies Sterilizer/DryAutoclave SubTotal SealingMachine

1 1 2

13500 5000 6500

16000

16000 47500

1150

2300

ElectricIron Stand/Tables/StorageSystems/minortools Total ProductionVolumeoftheunit. No.ofwomenworkingintheunit. No.ofnapkinsproducedperdayperwoman Totalnapkinsproducedperdayby10women=10x300 MonthlyProjectedProduction@25days Items RawmaterialCosts:At3000Napkins/dayx25days: 70000napkinsxRs.1/napkin LabourCosts@Rs.0.40x70000napkins. TotalVariableCosts. VC/Napkin SalePrice Contribution WorkingCapitalrequirement/month totalVariableCosts@xRs.1.40 MonthlyAdminExpenses TotalWorkingCapitalrequired TOTALINVESTMENTREQUIRED BREAKEVENPRODUCTIONVOLUMES(BEPV).

500 15000

500 15000 65300

10 300 3000 75000 Amount. 75,000.00

30,000.00 Rs.1,05,000.00 Rs.1.40 Rs.2.00 Rs.0.60 Amount(Rs) Rs.1,05,000.00 Rs.18,000 Rs.1,23,000.00 Rs.1,88,300.00

WithvariousROIscenariosof18%,7%and5%,theBreakEvenProductionVolumesarecalculated. ROI FixedCosts MonthlyAdminExpenses InterestonEquipment 18% Rs.18,000 Rs.979.50 12% Rs.18,000 Rs.653.00 7% Rs.18,000 Rs.380.92 5% Rs.18,000 Rs.272.08

InterestonWorkingCapital DepreciationonEquipment@10% TotalFixedCosts FC/NAPKINS VC/NAPKIN ProductionCost/napkin BreakEvenProductionVolume/day

Rs.1,845.00 544 Rs.21,369 Rs.0.28 1.40 1.68 1425

Rs.1,230.00 544 Rs.20,427 Rs.0.27 1.40 1.67 1362

Rs.717.50 544 Rs.19,643 Rs.0.26 1.40 1.66 1310

Rs.512.50 544 Rs.19,329 Rs.0.26 1.40 1.66 1289

Observation:Thehandoperatedcoreformingmachineisanefficientandcheapalternativetofoot operated,orelectricoperatedpneumaticmachinesThepulverizerMrs.Nagalakshmihasinnovatedis alsoamuchbettertechnicaloptioncomparedtohighend,highHPandRPMmachineswhichare noisyandcumbersometooperate.

1.8 HighInvestmentSanitaryNapkinProductionUnits:Kottakkuppam Village,VillupuramDistrict,Tamilnadu.(ValueofInvestment:Morethan Rs.4.0lakhs).

TwoSanitaryNapkinProductionUnitsStarMagalirMunnetraSangamandPayithammalMagalir MunnetraSangamwerealsoincludedinthestudy.ThesetwoSHGsarepromotedbytheNGO KalvikendraandtheseunitswereinitiatedaspartoftheTsunamiRehabilitationProjectwith grants/loansfromthegovernment.ThetwoSHGsshareacommonworkplacethoughtheir operationsareseparate.TheyhaveinstalledmachinerydesignedbytheNationalInstituteofFashion Technology(NIFT)butmostofthemachineryisnotbeingusedbythewomenforvariousreasons. Mostoftheoperationscarriedoutbythewomenarebymanualmethodsincludingthecore formationofnapkins.Thegroupsareproducingavarietyofmodelsofsanitarynapkinsfrom regular,compactnapkins,postmaternitypadsetc.Theyusethecommon(Tamilnadu)government brandasalsotheirownbrandforbeltedpadsforpostmaternityuse,namedasEasyCarewhich seemstohaveagoodmarketinhospitalsetc.Theyaresupplyingnapkinstovariousmedicalstores, schoolsetc.andhaveavisiblepresenceinthedistrictinsanitarynapkinproduction.Thereareabout 5womeneachfromthetwoSHGswhoregularlycomeandworkinthetwounits.Theunitsalsohire womenoutsidetheirSHGsforproductionandispayingRs.0.60perbeltedpad.Acoordingtothem regularpadsarenotasprofitableasthebeltedpadsastheyareabletoselleachpadforRs.3per piece,whereastheregularpadcanbesoldonlyforRs.2perpiece.Theyalsofeltthatthemargin fromsanitarynapkinproductionandsaleswasmeagerandgovernmentshouldcomeupwithsome subsidyschemetogivesomeextraincomeforwomenwhowork. Though a high investment has been made, since those machines are not being used (except for sealingandsterilizing,othermachinesaresparinglyused),theseunitshavenotbeenincludedinthe detailedbusinessmodelstudy.

Conclusion
1. The Akshaya model had a better quality of the sanitary napkin as they used a judicious mix of various absorbent layers which included cotton pad, wood pulp with added SAP gel powderandalsotheabsorbentgelsheet. 2. In terms of machinery, the best unit was the Girugambakkam unit which had highly innovated machinery which were cheaper, cost and power efficient, less noisy compared to costlierhighHPmotorbasedpulverizers.Theidealmixofmachineryforaunitcanthusbea pulverizer, hand operated core forming machine, central sealing and hand operated sealing machine and dry autoclave. Additionally if the covers also need to be sterilized, a UV Sterilizercouldalsobeadded. 3. Someoftheautomationhasbeenfoundtobenongenderfriendly.Thisisespeciallytruefor the foot operated core forming machine where the production volumes were found to be largelyreducedduetowomenfindingitverydifficulttooperatethesame. 4. In Kottakkuppam, an imported machine of Rs.3.0 lakhs was found which was used only for the diecutting of absorbent layers. They also had expensive machineries for foot operated sealing which were not used. Alternatively simple die cutting machines costing around Rs.15000/canbeusedforuniformcuttingoflayersandshapes. 5. It was also found that the role of machinery in sanitary napkin production though helped drudgery reduction to some extent it escalated the fixed monthly costs of the unit and thus had a negative impact on the profits. The higher the investment, the higher fixed costs and highertheproductioncostofthenapkins. 6. Production volumes mainly depend on the skill of the women, and also the motivational levelsofwomengettinggoodpaymentsfortheprocess. 7. There is a definite need for a supervisory role in the Sanitary Production unit which is quite critical for the unit to succeed. These functions include, sourcing of raw materials and not getting cheated while purchasing the raw material since unless trained and experienced similar looking but cheaper material would be sent by the suppliers. There is also other important elements like inventory control , taking stock of orders and production volumes, minor R&D work for innovative or new products etc. , keeping track of the production rate, quality, packaging etc. Other important issue at a later stage will be the maintenance of the machineryoncethewarrantyperiodisoverandwhenproblemsofthemachinessurface. 8. While promoting sanitary napkin production by women SHGs, utmost care should be given to see that a high degree of hygiene is maintained inside the unit. Wearing of hand gloves, face masks is a must and the training of SHG women and subsequent supervision of productionshouldaddressthisissueasprimeimportant. 9. The best suggested technology for the production of sanitary napkins is a combination of differentabsorbentlayerscontainingwoodpulp,cottonpadandabsorbentgelpad(4grams of wood pulp, 2gms of cotton pad and 2 grams of absorbent gel pad) with multiple covering andheatsealing.Alsotheuseof1%ofSuperAbsorbentPolymerwhilepulverizingthewood pulp (though the wood pulp comes pre mixed with SAP), increases the overall absorbing quality of the sanitary pad. Using only wood pulp tends to increase the irritability, heat etc. and a cotton pad increases the comfort levels considerably. But the use of cotton pads

10.

11.

12.

13.

14.

15. 16.

17.

increases the cost of production and is not practiced by almost all units except the ThiruvidanthaivillageunitinKancheepurakdistrict. Asforruralareaswithproblemsofelectricity,commonfacilitycentrescanbe thoughtoffor centralizedwoodpulppulverization,stitchingofouterlayeretc.afterwhichthematerialcan be distributed to common workplaces where women can form the Core layers, outer covering etc which is the most labour intensive work. The finished napkins can be brought back to the Common Facility Centre where the napkins can be sterilized and packed. In this way,morewomencanbeemployedandlargervolumesofproductioncanbeachieved. It was found that the margin per sanitary napkin was very low. But with proper training, skill enhancement and proper supervision during production, women can be given a minimumwagesofRs.100/day.Theprofitanalysiscalculationhavepointedtothefactthata daily production of about 900 pads for a low investment unit is adequate for break even of the unit, where as for a higher investment unit with automation, the Break even production hastobehigher. The production costs for the sanitary napkins units for various models have been presented. If the government has a buy back arrangement, a minimum cost of Rs.2.25 can befixedsothattheSHGwomenarenotputintoanyformofexploitation. Also it is felt that a insurance scheme can be introduced to all the SHG women who are engaged in sanitary napkin production as there are cheap but meaningful insurance schemes and healthy policies available. Govt of India can make it mandatory that all Sanitary Napkin Production units offer life and health insurance coverage to the women workingintheunits. Taking into account to the fact that quality and uninterrupted power is still a problem in many rural areas, the Girugambakkam Unit, the Akshaya Unit and the Hayrana Unit are the bestoptedunitsforreplication.Ifonewanttohaveminimummachineryforcoreformation, the Girugambakkam core forming machine is the ideal one which does not require electric power. Interestingly the Kottakkuppam Units, though they had extensive machineries designed by the National Institute of Fashion Technology (NIFT) for core formation of the napkin, engage manual labour for core formation and do not use the machinery which they have. Womenprefertoworksittingandtheyfindituncomfortabletoworkwhilestandinglikethe footoperatedmachineryforsealing,napkinformationetc. Incentive schemes for promotion of Menstrual Hygiene along with extensive awareness creation would pave the easy adoption of good MHM measures by women and adolescent girls.HerethesocialmarketingincentiveoftheHaryanaModelisagoodexample. Onealsohastothinkofdistribution/marketingstrategyforthesanitarynapkinsandvending machines are found to be a good option. Models ranging from Rs.6500 to Rs.10,000/ are availableforvendingofSanitarynapkinsbydroppingaRs.2coinintothemachine.