What is a sanitary napkin project report?
A sanitary napkin project report is a detailed project report (DPR) for a unit that turns fluff pulp, super absorbent polymer (SAP), nonwoven top sheet and PE back sheet into disposable pads. It sets out the process, machines, BIS testing, raw materials, project cost, means of finance, five-year projections, DSCR and break-even a lender checks.
First-time entrepreneurs, self-help groups and existing hygiene brands use it to size the plant and apply for a loan or PMEGP subsidy; banks use it to judge whether the unit can repay.
Also known as: sanitary pad making project report, sanitary napkin business plan, DPR for sanitary napkin manufacturing, sanitary pad manufacturing plant report.
What a bank checks in a sanitary napkin project report
A project report on sanitary napkin manufacturing is judged on thin margins per pad, so lenders look hard at material cost, packing and the cash cycle. These are the values in our sample report and why each one matters.
Fluff pulp and SAP drive this figure. Banks compare it with current supplier quotes, because a low share usually means the selling price is too optimistic.
Individual wrappers, polybags and cartons cost more than power in a pad unit. Reports that lump packing into raw material often understate it.
The debt service coverage ratio (DSCR) is profit available for loan payments divided by those payments. Year 2 is the tightest, when full instalments start before sales mature.
Distributors and institutional buyers pay late. Trade receivables are the biggest current asset in the sample, so debtor days set the size of the cash credit limit.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, suppliers and buyers.
Sanitary napkin manufacturing plant cost in India
Cost depends mostly on how automated the line is. Manual and semi-automatic machines make a few thousand pads a day; a fully automatic machine makes the whole pad in one line. The automatic tier below is the plant in our sample report; the other two are indicative ranges.
Micro unit
₹3–10 lakh
About 1,000–3,000 pads per day, manual or semi-automatic machines
- Machines and dies₹1–5 lakh
- Room or shed (often rented)₹0.5–2 lakh
- Working capital margin₹1–3 lakh
Self-help groups and first units; Mudra or PMEGP
Semi-automatic unit
₹40–90 lakh
About 10,000–25,000 pads per day
- Machines₹20–45 lakh
- Shed and fit-out₹10–25 lakh
- Working capital margin₹5–15 lakh
PMEGP up to ₹50 lakh, or MSME term loan
Fully automatic plant
₹247 lakh
89,000 pads per day, 2,67,00,000 pads per year
- Plant and machinery₹122.90 lakh
- Land and building₹77.38 lakh
- Working capital margin₹18.18 lakh
Term loan ₹185.14 lakh (75%), promoter ₹61.71 lakh
Micro and semi-automatic ranges are indicative and exclude land. Costs vary with machine make, speed and location.
Sanitary napkin manufacturing process, step by step
On an automatic machine all of these steps run in one continuous line. In a small unit each step is a separate machine and the pad moves by hand between them.
- Defibration
Fluff pulp from rolls or sheets is fed into a hammer-mill defibrator that opens it into loose, soft fibre.
- Core forming with SAP
Fibre is drawn by vacuum onto a forming drum, SAP granules are dosed into it and the core is wrapped in tissue.
- Compression and embossing
The core is pressed to the target thickness and embossed with channels so it holds its shape and spreads fluid.
- Lamination
The nonwoven top sheet and PE back sheet are bonded around the core with hot-melt adhesive, and positioning glue and release paper go on the back.
- Cutting and folding
A rotary die cuts the pad and wings to shape; the pad is folded and sealed in its individual wrapper.
- UV sterilisation
Wrapped pads pass through a UV tunnel to cut microbial load, which the BIS hygiene test checks later.
- Testing and packing
Samples from each batch are tested for size, pH and absorption under pressure, then pads are counted into packs and cartons.
Raw materials for sanitary pad making
Fluff pulp and SAP make up 55% of raw material cost in our sample. Both are often imported, so their price moves with the rupee and with freight. Top sheet, back sheet, adhesive and release paper are bought as rolls cut to the machine's width.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Fluff pulp | 35% | 87.73 |
| Super absorbent polymer (SAP) | 20% | 50.13 |
| Nonwoven top sheet | 15% | 37.60 |
| Release paper and hot-melt adhesive | 12% | 30.08 |
| PE back sheet | 10% | 25.06 |
| Tissue paper | 8% | 20.05 |
| Total | 100% | 250.65 |
Packing material (wrappers, polybags, cartons) is costed separately in the sample at 8.3% of sales.
Sanitary napkin making machine and plant equipment
The automatic napkin machine is 62% of plant and machinery cost in our sample. Its real output depends on efficiency and changeovers between sizes, not only its rated speed.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Automatic sanitary napkin making machine | Forms the core, laminates, cuts, folds and wraps each pad | 76.20 |
| Packing and sealing machine | Counts pads into packs and seals them | 14.75 |
| Pulp defibrator | Opens pulp sheets into fluff | 9.83 |
| UV sterilisation unit | Reduces microbial load on wrapped pads | 7.38 |
| Air compressor | Runs the machine's pneumatic controls | 7.37 |
| Quality testing equipment | pH, size and absorption tests for BIS | 7.37 |
| Total plant and machinery | 122.90 | |
Costs are the sample report's estimates for an 89,000 pads per day plant. Get current quotations before you finalise.
Who buys sanitary napkins from a new unit?
National brands own the premium shelf, so a new unit rarely starts by fighting them in retail. Most new plants sell regular and XL pads to regional distributors, make private-label packs for pharmacies, retail chains and online sellers, or supply institutions.
Government supply sets a floor on price. Jan Aushadhi Kendras sell Suvidha pads at ₹1 per pad, and over 100 crore pads had been sold through them by 31 January 2026, according to PIB. Separately, the Health Ministry runs a menstrual hygiene scheme for girls aged 10 to 19 that includes access to sanitary napkins.
- Pharmacy and FMCG distributors in tier 2 and 3 towns
- Private-label brands, retail chains and online sellers
- State health and school menstrual hygiene programmes
- Self-help groups and NGOs that run local sales
- Hospitals and maternity homes buying maternity pads
Where a new unit wins: contract manufacturing. Many hygiene brands that sell online do not own a plant. A BIS-licensed unit that can run their sizes and packs can build a steady order book in its first year.
BIS licence, GST and other approvals for sanitary napkins
Sanitary napkins need a BIS licence before the first pack is sold, so the licence and test lab belong in the project cost from day one. Status as of October 2026:
| BIS certification | Mandatory under the Medical Textiles Quality Control Order from 1 October 2024. The standard is IS 5405, now in its 2025 revision, covering napkins, panty liners and maternity pads. |
|---|---|
| Test equipment | Routine tests need a pH meter, a balance reading 0.01 g and an absorption-under-pressure setup held at 27 ± 2 °C. Larger units keep these in-house; MSMEs may use shared or accredited outside labs. Hygiene and biocompatibility tests are sent out. |
| Pack marking | The BIS Standard Mark on every consumer pack, with the line directing buyers to www.bis.gov.in for certification details. |
| GST | Nil rate since 27 July 2018 (HSN 9619 00 10 and 9619 00 20). Because sales are exempt, GST paid on pulp, SAP and machines generally cannot be claimed back, so it is part of your cost. |
| Disposal pouch | The Solid Waste Management Rules, 2026, in force from 1 April 2026, expect used pads to be wrapped in pouches provided by the manufacturer or brand owner. |
| Registration and consent | Udyam registration, consent to establish and operate from the State Pollution Control Board, and a factory licence where the worker threshold applies. |
PMEGP, Mudra and bank loans for a sanitary napkin unit
PMEGP
Manufacturing projects up to ₹50 lakhMargin-money subsidy of 15–35% for new units, with 5–10% own contribution. Suits a semi-automatic pad unit.
Mudra
Up to ₹10 lakh, or ₹20 lakh for repeat borrowersCollateral-free loans for a micro unit or a self-help group enterprise with manual machines.
MSME term loan with CGTMSE
Guarantee cover up to ₹10 croreFor a fully automatic plant like our sample. The unit needs Udyam registration for guarantee cover.
Scheme limits change. Confirm current terms with the bank or the scheme portal before applying.
Mistakes that weaken a sanitary napkin business plan
- Pricing pads at MRP
A unit sells to distributors or brands at an ex-factory price far below the pack MRP. Revenue built on MRP makes the DSCR look much better than it is.
- Leaving out the BIS licence
Pads cannot be sold without the Standard Mark. The licence fee, test equipment and outside lab tests need a line in the project cost and time in the schedule.
- Counting GST credit on inputs
With nil GST on sales, input tax on pulp, SAP and machines is a cost. Reports that net it off overstate profit.
- Using the machine's rated speed
Size changeovers, splice breaks and start-up rejects mean the line runs well below its nameplate. Output should be planned on realistic efficiency.
- No buyer in place
An automatic line makes tens of thousands of pads a day. Without a distributor, private-label or institutional order, stock and working capital pile up in the first year.
How NPCS helps you set up a sanitary napkin unit
- Scale and product mixChoose between semi-automatic and automatic lines, and the pad sizes and packs for your buyers.
- Machines and materialsCompare napkin machines and get quotations for the machine, pulp, SAP and nonwovens.
- Bank-ready project reportProjections, DSCR and working capital in the format your bank or PMEGP office wants.
- BIS and approvalsTest lab list, plant layout and the approvals you need in your state.
NPCS's client list includes 22 sanitary napkin assignments and 36 across hygiene and tissue products. They range from bankable project reports to feasibility studies, prepared by the NPCS project team led by founder Ajay Kumar Gupta.
What's inside the sanitary napkin sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Sanitary Napkin project report: frequently asked questions
How much does it cost to start a sanitary napkin manufacturing unit?
A micro unit with manual or semi-automatic machines can start at roughly ₹3–10 lakh. A semi-automatic unit making 10,000 to 25,000 pads a day needs about ₹40–90 lakh, and a fully automatic line costs more. Our sample report models an 89,000 pads per day plant at ₹246.85 lakh. These are indicative figures; your report works out the cost for your capacity and site.
Which machine is needed for sanitary pad making?
A fully automatic unit runs one sanitary napkin making machine that defibres pulp, forms the core, laminates, cuts and folds in a single line. Around it sit a packing machine, UV sterilisation and an air compressor. Small units use separate defibrator, core forming, sealing and UV machines. You also need BIS testing equipment such as a pH meter and absorption test setup.
Is BIS certification compulsory for sanitary napkins?
Yes. The Ministry of Textiles brought sanitary napkins under a Quality Control Order, which made compliance with the BIS standard IS 5405 mandatory from 1 October 2024. In practice this means a BIS licence and the Standard Mark on every consumer pack. Plan the licence, the in-house test equipment and outside lab tests into your project cost and timeline.
Is sanitary napkin manufacturing profitable?
In our illustrative sample, an 89,000 pads per day plant earns a 26% return on investment in Year 3. It breaks even at about 38% of capacity and pays back in about 3.2 years. Actual profit depends on fluff pulp and SAP prices, the price you get from distributors, machine efficiency and how quickly you fill the plant with orders.
Can I get a PMEGP loan for a sanitary napkin unit?
Yes, if the project cost is within the scheme limit of ₹50 lakh for manufacturing. PMEGP gives a margin-money subsidy of 15–35% of project cost, depending on your category and whether the unit is urban or rural. A semi-automatic pad unit often fits. Larger automatic plants usually take an MSME term loan, often with CGTMSE cover.
Sanitary pad ka business kaise shuru kare?
Start by choosing the scale: a small semi-automatic unit or a fully automatic line. Then fix your buyers, such as distributors, private-label brands or institutional supply. Get a project report made, apply for Udyam registration and a BIS licence, and arrange the shed and power. Then apply for a PMEGP, Mudra or term loan with the report and machine quotations.
Is the sanitary napkin project report PDF free, and can I use it for a loan?
The sample PDF is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and loan scheme.
Sources and references
- Product manual for disposable sanitary napkins, IS 5405 (July 2025)Bureau of Indian Standards, checked Oct 2026
- Product manual for sanitary napkins, IS 5405 (January 2025): test equipment and markingBureau of Indian Standards, checked Oct 2026
- Compendium of Indian Standards: IS 5405:2025 disposable sanitary napkin, panty liner and maternity padBureau of Indian Standards, checked Oct 2026
- Lok Sabha unstarred question 886 on sanitary pads, 7 February 2025Ministry of Health and Family Welfare, Lok Sabha, checked Oct 2026
- Notification 19/2018-Central Tax (Rate): exemption for sanitary napkinsGST Council, Government of India, checked Oct 2026
- Solid Waste Management Rules, 2026 (S.O. 388(E), 27 January 2026)Ministry of Environment, Forest and Climate Change (copy hosted by Maharashtra Pollution Control Board), checked Oct 2026
- New Solid Waste Management Rules notified, in force from 1 April 2026Press Information Bureau, checked Oct 2026
- Pradhan Mantri Bhartiya Janaushadhi Pariyojana: Suvidha sanitary napkins (March 2026)Press Information Bureau, checked Oct 2026
- Prime Minister's Employment Generation Programme (PMEGP)Bank of India, checked Oct 2026
- PMEGP guidelinesIndustries and Commerce Department, Government of Tripura, checked Oct 2026
- Mudra loan limit raised to ₹20 lakh (Tarun Plus)Ministry of Finance, Press Information Bureau, checked Oct 2026
- CGTMSE credit guarantee schemeState Bank of India, checked Oct 2026
- Mini sanitary napkin making machineNational Innovation Foundation, Department of Science and Technology, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.