Sanitary Napkin Manufacturing (SHG / Pad Man Model)

Social Impact Manufacturing

Sanitary Napkin Manufacturing (SHG / Pad Man Model)

Business Ideas

Sanitary Napkin Manufacturing (SHG / Pad Man Model)

Current Detail Project Report

Social Impact Manufacturing

Low

Investment

Payback

5–7 years

Break-even

1.02–1.10 Lakh/month

Gross Margin

45%

Top Subsidy

25% - 35%

Own Contribution

10% - 5%

Location Suitability

Best suited for	Semi-Urban / Rural — near SHG network and rural distribution
State / Region focus	All Maharashtra rural areas. Amravati, Akola, Yavatmal, Wardha (Vidarbha rural — lowest pad penetration).
Nearest raw material hub	Cellulose pulp: importers (China/SE Asia) via Delhi/Mumbai. Non-woven fabric: Gujarat manufacturers.
Nearest MSME cluster	SHG networks, Anganwadi centres, women's cooperative societies

Monthly Revenue

Rs. 6.63 Lakh

Break-even

Rs. 0.71 Lakh = 3,000 pads/day (38% capacity)

Gross Margin

45%

Net Surplus (in Lakh)

Rs. 3.42 Lakh

Payback

5–7 years

* All financial figures are indicative only. Actual results vary based on location and management.

Strengths

62% gross margin — pad cost Rs. 1.50–3, sell at Rs. 3–5
PMEGP 35% + NRLM fund = near-zero investment for women SHGs
Sanitary napkins are GST-EXEMPT since July 2018 — zero GST on sales
Rural penetration is only 30–40% — massive untapped market of 300M+ women

Alert

Brand trust — 'local pad vs. Whisper' perception challenge
Raw material import dependency — cellulose pulp mostly imported from China/SE Asia
Distribution in rural areas is challenging — last-mile reach
Quality consistency — any defect in absorption or leakage destroys trust permanently

Opportunities

Government MHS programme provides guaranteed bulk demand — apply as approved supplier
Biodegradable/compostable pads — growing demand from eco-conscious segment
Pad vending machines in schools, offices, malls — Rs. 5/pad coin-operated
Menstrual cup + cloth pad manufacturing — emerging alternatives, same target market

Threats

National brands launching economy packs at Rs. 3–5/pad (Whisper Basic, Stayfree)
Menstrual cup adoption reducing disposable pad demand in urban areas
Raw material cost volatility — cellulose pulp prices linked to international market
Social stigma around menstruation — some areas resist open selling/promotion

🏛️

PMEGP

25% (Gen) / 35% (Women/SHG)

✓ Women SHG gets MAXIMUM subsidy + MINIMUM own contribution

🏛️

CMEGP

25% / 35%

✓ Maharashtra

🏛️

NRLM (National Rural Livelihoods Mission)

Revolving fund for SHGs

✓ Registered SHG

🏛️

Stand-Up India

MCLR loan

✓ Women — manufacturing

🏛️

Menstrual Hygiene Scheme (MHS)

Government procurement for free distribution

✓ Supply to government Anganwadi/school programme

MSME Udyam

Mandatory • Free

GST Registration

Mandatory (sanitary napkins are GST-exempt since 2018) • Free

Drug License (if making medicated pads)

Only if medicated — regular pads don't need this • Rs. 5,000–15,000

BIS Certification (IS 5405 — optional but recommended)

Optional — builds quality credibility • Rs. 10,000–25,000

Trade License

Mandatory • Rs. 500–2,000

Social Impact Manufacturing