Start Sanitary Napkin business at just Rs 15,000 and earn upto Rs 1 lakh

New Delhi: For small businesses there are a variety of business opportunities offered by the government and if tapped properly, they can in the long run give great returns.

One such business venture can be that of Sanitary Napkin Manufacturing Project. You can invest as low as Rs 15,000 in the project and earn upto Rs 1 lakh. So this can be a great opportunity for those looking to start this business.

Under the Pradhan Mantri Mudra Yojana (PMMY), MUDRA has created products/ schemes named –Shishu, Kishore and Tarun. Shishu covers loans upto Rs 50,000, Kishor covers loans above Rs 50,000 and upto 5 lakh while Tarun covers loans above 5 lakh and upto 10 lakh.

Here is the complete break up of how much will you need to start the Project?

Fixed capital = Rs 8,1340

Working capital= Rs 63000

Total= Rs 1,44,340

Own contribution (10% of total project cost) Rs 14,434

Fixed capital loan = Rs73206

Working capital loan = Rs 56,700

Total= Rs 1,44,340

How much earning is possible?

Assuming the unit runs for 300 days with per day production 1440 napkins. 8 napkins per packets i.e 180 packets per day. Hence the unit manufactures 54000 packets per annum. Total sales revenue from the sale of 54000 packets @ Rs.13 per packet= Rs 7,02,000 annually.

Here is the complete break up of earning

Price fixing per napkin

SiNo Description Values
1 Raw material per napkin packet 10.92
2 Cost per napkin packet 10.92
3 Addour marine 2.08
Total price for a napkin packet contain 8 pads 13.00
Per day production 1440 napkins. 8 napkins per packets i.e 180 packets per day. Hence the unit manufactures 54000 packets per annum. Total sales revenue from the sale of 54000 packets priced at Rs 13 per packet = Rs 7,02,000

Cost of production per annum

Raw materials = Rs 431640

Wages and salaries = Rs 84000

Administrative expenses = Rs 27000

Depreciation on fixed assets = Rs 8134

Insurance = Rs 813

Repairs and renewals = Rs 4067

Interest on capital = Rs 18186

Selling expenses (2.3) = Rs 16200

Total Rs = Rs 5,90,040

Net profit

Total sales-cost of production

Rs 7,02,000-Rs 5,90,040 = Rs 111960

This business also has the potential for having a long term stable and profitable compared to other complicated and risky business. Moreover, due to increase in health awareness among people even in the rural areas, demand for this product is increasing day by day.