Jayaashree Industries: The Low Cost Sanitary Napkin Maker. By Reshma Kamath, Seoul National University

Transcription

1 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, Muruganandam s machine costs approximately Rs. 75,000 to the buyer. 3 This allows small players including Women s Self Help Groups (SHGs) and budding female entrepreneurs to effectively use this low cost, easy-to-use sanitary napkin manufacturing 1 Menstrual Hygiene: A neglected condition for the achievement of several Millennium Development Goals, Oct.2007, Dr. Varina Tjon Ten Hygiene.pdf (accessed January 10, 2011) 2 Nirmal Sanitary Napkin Project. mpg, (accessed January 10, 2011) 3 New Inventions: Jayaashree Industries, A.Murunganandam, (accessed January 10, 2011)

2 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 A.Murunganandam: Made in India Search: Make things better, Make better things (accessed January 10, 2011)

3 such sanitary napkin manufacturing machines have been delivered. Several self help groups, corporate and organizations such as M S Swaminathan Research Foundation, All India Woman s 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 women s 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. Details Qty Rs. Defibering M/c 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) 5. Required Workers 1. Weighing Scale (To Weigh Wood Pulp) Work Table Plastic Buckets and Trays Total 5500 S.No Workers Nos Salary(Rs.) 1. Semi Skilled Labors (Daily Wages Rs.70 Per Day) 4 Workers A.Murunganandam: Mini Sanitary Napkin Making Machine (accessed January 10, 2011)

4 6. Monthly Administrative Expense S.No Expenses Value (Rs) 1. Rent Electricity Bill General Administrative Expenses 1000 Total Required Raw Material per Day S.No Raw Material Unit Value (Rs) 1. Wood Pulp 14.5 Kgs Top Layer 220 Mts Back Layer 350 Grams; Release Paper 15 Sheets Gum 1 Kg Packing Covers 180 Nos 135 Total 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.) 10. Sales Per Month(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 f. Add Whole seller's Profit Margin : 20% 2.50 g. Maximum Retail Price per Packet ( MRP) Details in Rs. Value Of per Day required Raw Material 1478 x 25 One Month (25 Working Days) 36,950 Per Day Napkin Production = 180 Pkts One Month (24 Working Days) 24 x 180 = 4320 Pkts Per Packet Whole Sale Price Value of One Month Production 4320 x 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%

5 11. Total Investment(Rs) S.No Investment Details Value (Rs) 1. Advance for working Place Machineries, Installation and training fees 83, Other Accessories Running Capital for Two Months 86, SSI Registration and Other Admin Expense 7,000 Total 1,85, Net Profit per Year(Rs) Profit per Month = 11,256 Per Year profit 11,256 x 12 = 1,35,072 Interest for total 14 % = 25,985(A) Depreciation of Machineries 10% = 8000 (B) A+B = 33,985 Net Profit Per year; = ,985 = 1,01,087 Profit margin on Total Investment = 55% Courtesy of Jayaashree Industries