Welcome to New Inventions - Jayaashree Industries

Receiving the Best Innovation Award from The President of India - Smt. Pratibha Patil in New Delhi

In our country where population is touching 100 crores, the value of sanitary napkins used by women exceeds 1000 crores annually and it is increasing year after year. In India manufacturing of these sanitary napkins is in the hands of very few companies, mostly controlled by multi-nationals. The set of machines used are very expensive, the price of each set running in to crores. Most of the raw materials used are also imported. Even for middle class women, napkins sold in the market are becoming expensive. A BOON TO THE WOMEN SELF HELP GROUPS While the concept of Ladies Self Help Groups (SHGs) has taken a firm root in our country, it has been observed that hard work is necessary especially in marketing. Failures of SHGs in some areas have also come to light. For the SHGs, this new invention should be of great help run a successful business, since:

The investment is nominal The product price will be affordable The consumer market is huge and is continuously expanding

Quality sanitary napkins at affordable will also find a market among rural and lower middle class women who can discard their traditional method of using unhygienic cloth and switchover to these.

The invention and the Idea.

National award wining New Invention Mini sanitary Napkin making Machine: Idea in more depth: After taking four years painful research, A.Muruganantham (46) has designed, created, tested and implemented a sanitary napkin-making machine that operates on a small scale. Contrary to a largescale production model which requires Rs.3.5 Crores as initial investment,Murugananthams sanitary napkinmaking machine can be made available to a buyer for approximately Rs.75,000. This allows smaller players to adopt the business model propagated by him, and thus generates more employment and wealth in the most neglected sections of society.

More specifically, an empowerment forum such as a Self Help Group or a womens group can invest in a sanitary napkin-making unit to create a business that employs up to ten women. The new invention is capable to make 120 napkins per hour

This new invention mini sanitary napkin making machine awarded the best innovation national award by President of India Prathiba Patil on 18th Nov,09 at New Delhi.

About Jayaashree Industries

Mr. Muruganandam Founder of Jayaashree Industries had to discontinue education after SSLC because of family problems and got employed as a helper in a welding workshop. With a clear vision to think forward and analyse ground realities, Mr. Muruganandam Arunachalam found that many women in rural areas still use clothes for their menstural periods which is highly unhygenic. He also understood that the cost with which the multinationals sell their napkins, is keeping the rural women away and a solution for this has to be found. Those who know less about this napkin industry is that the whole market is virtually controlled by two companies, Procter and Gamble (makers of Whisper) and Johnson and Johnson (makers of Stayfree and Carefree). Finding that branded napkins by multi-national companies were very costly he decided to

design a sanitary napkin making machine which can produce napkins at low cost. After a four-year study, Mr. Muruganandam succeeded in designing a machine for Rs. 65,000 as against the machines now being used costing Rs. 3.5 crores. Though initial response to his product was very poor, Mr. Muruganandam with the help of wife started selling napkins to women nearby. The semi-automatic machine requires only a single phase power supply. In a very short span time, the product has been a success and has been delivered to more than 100 units in many states. Murugananthams model:

Builds a viable and sustainable enterprise that can be run efficiently by the stakeholders at the grassroots. Delivers an essential commodity the sanitary napkin to poor women at affordable rates without compromising on the raw material used (which is not the unviable cotton) or quality of the product as compared to the multinationals. This is an extremely crucial development and can be viewed as a breakthrough in positive social engineering. Reduces the players involved in the supply chain the third person to handle the product (from its inception) is the consumer. Thereby makes optimal use of the micro-credit generated by a community.

The technology used is simple and non-chemical. In fact, the machine uses purely mechanical processes such as grinding and de-fibration, pressing and sealing to convert the raw material high-quality pine wood pulp into a napkin. Overall, the sanitary napkin-making machine is Murugananthams first attempt at harnessing technology for the benefit of the underprivileged. Once the organization achieves its current goals to expand and propagate its invention, it would refocus to its core competency inventing the Next Big Thing. One sentence best describes About the idea? Sanitary napkins produced in a Small is Beautiful model can deliver livelihood, hygiene and dignity to poor women, and help them strengthen society. What problem or issue does the idea address?

Millions of women around the world cannot afford sanitary napkins, mainly because theyre manufactured using expensive machinery and thus priced at a premium. Such women resort to an older and cheaper alternative a piece of cloth or rag. This is an unhygienic alternative and can cause vaginal infections, skin irritations and embarrassing stains in public. But by reducing the unit price of a napkin,

Murugananthams model enables women to switch over to napkins dignity must never be unaffordable.

A light-weight and voluminous product like the sanitary napkin introduces high transportation cost. This model allows local production and thus solves the problem. Murugananthams model addresses the issue of rampant unemployment amongst the poor in rural, urban and semi-urban areas of all developing nations. 4)Overall, Murugananthams model offers livelihood, hygiene, dignity and empowerment to women all over the world. And it does so using a sustainable business framework.

Muruganantham has obtained a patent for his innovation Over 225 such machines have been delivered which are now functioning in 14 states of India also he is getting enquiry by various countries like Nigeria, Ethiopia, Kenya Uganda, Nepal and Bangladesh, but he does not want to make it a commercial affair though only the technology would be passed on to them.

Product - Overview

While the concept of Ladies Self Help Groups (SHGs) has taken a firm root in our country, it has been observed that hard work is necessary especially in marketing. Failures of SHGs in some areas have also come to light. For the SHGs, this new invention should be of great help run a successful business, since:

The investment is nominal The product price will be affordable The consumer market is huge and is continuously expanding

Quality sanitary napkins at affordable will also find a market among rural and lower middle class women who can discard their traditional method of using unhygienic cloth and switchover to these. The SHGs, making these napkins will then have a repetitive market in their own areas which will enable them to expand their business enabling an upliftment in their lives. This concept of self-development can spread to all the 800 districts in the country where Ladies SGHs can be formed for making and selling these sanitary napkins enabling a mass scale upliftment of women in the country. State Governments can also offer encouragement by permitting the sale of these inexpensive quality sanitary napkins in the ration shops, considering the hygienic aspect of women.

Machine Information

The low cost mini sanitary napkin manufacturing machine, a revolutionary concept among the high cost complicated machines now in use, will be of immense benefit to ladies SHGs and aspiring women entrepreneurs. In this machine, wood fiber (raw material) is defibrated, core formed and sealed with soft touch sensitive heat control, giving the final shape of the napkins. The machine requires single phase electricity for 1HP drive, can be accommodated in a space of 3.5 meters X 3.5 meters and will produce 2 napkins per minute. The sanitary napkins made out of this machine were distributed on trial basis among women who are used to other expensive napkins available in the market. The feed back from them has been extremely satisfactory, many of them expressing the opinion that they did not find any difference. This machine costs only Rs. 75,000 (Taxes and Installation Expenses extra). Banks and financial lending institutions will find it easier to finance this cottage industry.

Benefits BENEFIT TO WOMEN

Paves way of hygienic way of living. Improved health Provides means of income.

BENEFITS TO SOCIETY

Upliftment in way of life epically for poor and rural women. Better health - Better care for children. Quality product at affordable price. More and more entrepreneurs, a stronger economy.

Project Overview Market Currently the size of the Indian Sanitary Napkins market is 2,000 crores it is growing 16% annually.

There is a large Female Group even they aware of the napkins due to affordability (cost of MNC napkins) they are not using napkins, by reaching the particular Female group with

suitable pricing, the napkins can be branded very quickly in local Market. Installed Capacity The installed capacity of unit is 1,440 Napkins per day on single shifts basis. The annual capacity works out to 4,32,000 Napkins. Plant and Machinery The following items of plant and machinery are required for the project. Details Defibering M/c Core forming M/c Napkin Finishing M/c Ultra Violet Treatment Unit Other accessories Total Qty 1 No 1 No 1 No 1 No Rs. 20,500 5,800 28,500 10,400 4,500 69,700

* Taxes / Transportation / Installation / Training charges Extra Raw Materials The main New Material used for Sanitary Napkin manufacturing is

Wood Fiber Thermo Bonded Non woven Poly Ethylene Film Release Paper Glue LLDPE 50 GSM - Packing Cover

4. Other Accessories S.No 1. 2. 3. Items Weighing Scale (To Weigh Wood Pulp) Work Table Plastic Buckets and Trays Nos 1 2 5 Total 5. Required Workers S.No Workers Nos Salary(Rs.) Value (Rs) 3000 2000 500 5500

1.

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

4 Workers

7000

6. Monthly Administrative Expense S.No 1. 2. 3. Rent Electricity Bill General Administrative Expenses Total Expenses Value (Rs) 750 500 1000 2250

7. Required Raw Material per Day S.No 1. 2. 3. 4. 5. 6. Raw Material Wood Pulp Top Layer Back Layer Release Paper Gum Packing Covers Total 8. Total Napkins Production Details Per Day (Minimum) Per Day Production 8 Napkins per Packet 1440 Napkins 180 Packets Unit 14.5 Kgs 220 Mts 350 Grams; 15 Sheets 1 Kg 180 Nos Value (Rs) 798 340 65 30 110 135 1478

9. Price Fixing Per Napkin Packet(Rs.) Details a. Raw Material per Napkin Packet b. Wastage c. Cost Per Napkin Packet d. Add Our Profit 60 % e. Whole sale Price f. Add Whole seller's Profit Margin : 20% g. Maximum Retail Price per Packet ( MRP) 10. Sales Per Month(Rs.) Details Value Of per Day required Raw Material One Month (25 Working Days) Per Day Napkin Production One Month (24 Working Days) Per Packet Whole Sale Price Value of One Month Production One Month Sales One Month Raw Material Expense Total Profit Labor Charge - Less from profit Administrative Expenses - Less from profit Net Profit per Month in Rs. 1478 x 25 36,950 14408 = 180 Pkts 24 x 180 = 4320 Pkts 13.30 4320 x 13.30 57,456 36,950 20,506 7000 2250 11,256 in Rs. 8.20 0.10 8.30 5.00 13.50 2.50 15.80

Profit Margin On one Month Total Raw Material 31% Value

11. Total Investment(Rs) S.No 1. 2. 3. 4. 5. Investment Details Advance for working Place Machineries, Installation and training fees Other Accessories Running Capital for Two Months SSI Registration and Other Admin Expense Total Value (Rs) 5000 83,450 3500 86,660 7,000 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%

How Profitable is this? COST BREAK UP

(To Manufacture 8 Napkins inclusive of Packing) Material Core Material Top Layer Barrier Film Release Paper Gum Packing Total Rate/Kg (Rs.) 51 280 180 Consumption 72 Gms 7 Gms 2 Gms Total 3.70 2.00 0.35 0.20 0.30 0.60 7.15

Add wastage + Labour + Power etc round off to Rs.10.00 Total cost for 25 days production 25 x 120 Packets 3000 Packets x 10

= Rs.30,000.00

IF The Selling Price Is Rs.12.50 Per Packet Total Sales is Profit = Rs.37,500.00 = Rs. 7,500.00

IF The Selling Price Is Rs.15 Per Packet Total Sales is Profit = Rs.45000.00 = Rs. 15000.00