Production of Cost Effective,

Biodegradable, Disposable Feminine

Sanitary Napkins using Banana Fibres
An assignment on a business plan to be submitted in partial
fulfillment of the requirements of Entrepreneurship
Development

Submitted By:-
Anannya Dutta (Roll No 02)
Montu Bhadra (Roll No 39)
Centre for Management Studies
Dibrugarh University
5/30/2022
 Contents
1) Brief introduction of the proposed project
2) Brief history
3) Promoters
4) Funding Requirements
5) Product Details
6) Licenses
7) Marketing Plan
8) SWOT Analysis
9) Materials and Methodology
A. Materials
B. Methodology
1. Preparation of Banana Fibre Sheets
2. Softening of Canvas Cloth
3. Layering of Sanitary Napkin
10) Marketing Mix
11) Operational Plant
1. Location of the Plant
2. Details of machinery equipments and plant capacity
3. Location and layout
4. Details of raw materials and its availability
5. Inventory Management
6. Production Process
12) Organizational Plan
1. Constitution of the Unit
2. Legal Aspects of the Labourer
13) About the product – full information about the nature of a
product
14) Total cost of the project
15) Mode of finance
16) Working capital required
17) Manufacturing cost and probability
18) Critical Risks
19) Exit Strategy

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 Brief Introduction about the Proposed Project

Nowadays, everyone is concerned with establishing an

environmentally friendly atmosphere by eliminating environmental
concerns and pollution in nature. Furthermore, health and cleanliness
are extremely vital for humans. The textile, dye, and healthcare
industries produce the greatest pollutants. Healthcare wastes are the
biggest source of pollution that will cause purposeful issues for
humans. One key issue is the production and clearance of sanitary
napkins. Companies create napkins that are not biodegradable and are
hazardous to women's health. Sanitary napkins should provide
comfort and safety while also improving the health and lifestyle of
every woman. These napkins are placed next to the most delicate and
absorbent tissue in our bodies by women. Women use these sanitary
napkins for at least 20% of their lives.
Sanitary napkins are used by women all over the world for
menstruation protection. Only a small fraction of women in India use
sanitary napkins. The key reason for such a low number is people's
capacity to pay. Sanitary napkins available today are non-
biodegradable and cause severe infections, negatively impacting
women's health. To address this issue, hygienic bio napkins are
comprised of natural materials. In this investigation, naturally
accessible inexpensive materials such as banana fibre and cotton were
employed, which are readily available, biodegradable, and cost
efficient. Another advantage of adopting natural materials was their
porosity and ability to retain fluid for a longer period of time.
India is a developing country with a population of 1.34 billion
people, 323.6 million of whom are females aged 15 to 49. Previously,
papyrus, moss, grass, and bandages were used during menstruation,
and these materials might cause irritation and itching. Because of the
presence of germs, skin rashes, allergies, and other major health
problems might occur. Manufacturers also include chemicals in
scented napkins, which might create issues not only for the women
using them, but also for the infants during embryonic development.
To address these issues, we propose here that sustainable sanitary
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napkins be produced using alternative natural materials. The current
plan is attempted to manufacture sanitary napkins using banana fibre,
a natural absorbent fibre. The addition of banana fibres is believed to
provide antimicrobial properties and increase retentiveness. Other
significant features include antioxidant, biodegradability, UV
protection, and weather resistance. It has no negative environmental
impact and is considered an eco-friendly fabric.

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 Brief History of the Project

Women's menstrual hygiene products have developed over the

last several decades, with comfort, convenience of use, and
affordability influencing women's choices. In a country like India,
where women account for over half of the population, the sheer
volume of non-biodegradable menstrual waste created has serious
environmental consequences. With the majority of the population
coming from lower-middle-class backgrounds, observing healthy
menstrual hygiene practises with environmentally friendly products
necessitates the consideration of low-cost, long-term solutions.
Furthermore, during the COVID-19 pandemic, period poverty is at
all-time high, prompting women to seek out affordable and long-
lasting alternatives in the reusable product market. Hence, we thought
about the Feasibility and Acceptability (FA) of a banana fibre based
menstrual pad (BFP) amongst women living in rural and urban
environments.

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 Form of Ownership

The form of ownership is a partnership firm.

Lady Bliss Industries is a partnership company having two promoters.
The detailed information of the promoters is given below:-
Promoter 1: Anannya Dutta (Human Resource and Marketing
Manager)
The bio data of the promoter 1 is mentioned below:
Name – Anannya Dutta
Age – 24 years
Marital Status – Unmarried
Qualifications – HSLC, HS, B.Tech in CSE and pursuing MBA from
Centre for Management Studies, Dibrugarh University
Address – Sivasagar, Assam
Email – anannyadutta66@gmail.com
Contact No – 70024*****
Promoter 2: Montu Bhadra (Financial and Marketing Manager)
Age – 23 years
Marital Status – Unmarried
Qualifications – HSLC, HS, B.Com (Accounting & Finance) and
pursuing MBA from Centre for Management Studies, Dibrugarh
University
Address – Charaideo, Assam
Email – mntbhadra@gmail.com
Contact No – 70027*****

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 Funding Requirements
All the two partners have equally contributed a total sum of Rs
1000000 at an equal ratio i.e.,
Anannya Dutta = 1000000*1/2
Montu Bhadra = 1000000*1/2
According to the Accounting Standards, since we don’t have
any partnership deeds, so the ratio will be divided equally.

Product Details
Our product is better than the others because:-
1. The price is lower than the other competitors.
2. Better quality
3. Environment friendly
4. Good hygiene
5. Better packaging
6. Timely delivery of product

Licenses
1. Labour License: - We will get the labour license from labour
welfare office.
2. Trade License and GST - We will get the trade licence from
municipality. We will also contact the chartered accountant who
will help us for further legal issues regarding GSTIN.
3. BIS Certification
4. Registration of the firm
5. Trademark Registration
6. Pollution Clearance.

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 Marketing Plan

Marketing plan is an operational strategy that outlines an

advertising strategy that an organisation implements to reach its
target market. We already know that India is a country where
people are price sensitive. The behaviour we see in traders is that
they want more profit from the same item or they want less profit
but maximum sales. If we give them differed price with same
quality and a bit of eye catchy packaging, we can achieve the
desired sales easily. Instead of normal packaging, we will invest
maximum as we can on packaging and keep the quality constant.
Quality packaging itself will facilitate promotion of the product.
Here our main aim is to penetrate smoothly into the market.
Salesmen in our business will be hired more on commission
basis and less on salary basis. This strategy will motivate them to
sell more which will generate more money to them and our sales
will also get increased. For any organisation, effective designing
and implementing pricing strategy require thorough understanding
of the consumer’s behaviour and a systematic approach to setting
adapting and changing prices. Pricing policy will depend on the
competitors’ prices.

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 SWOT ANALYSIS
1. Strengths
a. It will be one of the best small-scale manufacturers of Sanitary
Napkins in North-East India
b. One of its strength lies in its factors such as hygiene, price,
environmental issues, etc.
2. Weakness
a. Lack of Brand Awareness.
b. Low profit margin in their sector.
c. Low level of advertisement and promotional activities.
3. Opportunities
a. Expansion opportunities in North-East India.
b. It can tie-up with more health-related organizations and NGOs to
create awareness about sanitary napkins and menstrual awareness.
c. Export opportunities can be trapped.
4. Threats
a. Strong competition from several players in business.
b. Changing consumer buying behaviour from online channel could
be a threat to the existing physical infrastructure driven supply chain
model.
c. Rising prices of major raw materials.

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 MATERIALS AND METHODOLOGY
A. Materials:
Sanitary napkins contain multi-layered structure and each layer
should have some specific function. Banana fibre, organic cotton,
muslin cloth and canvas cloth were used as a source of material.
Banana fiber is naturally occurring material and completely
degradable and poses no side effect to humans and environment.
Organic Cotton as top layer is one the generally prompted crude
material in napkin due to its non-aggravation, tissue-friendly and
prevalent fluid maintenance properties. Cotton material keeps away
moisture and keeps skin dry and makes skin comfort.
B. Methodology:
1. PREPARATION OF BANANA FIBER SHEET
The banana fibres are extracted from the stem of the banana tree and
were cut into tiny pieces. The small banana fibre pieces were taken in
the vessel or beaker and allow it to boil with water for an hour. To
this, sodium hydroxide was added. Later, it was filtered using a filter
paper and the mixture was poured onto a mould of a required shape
and let too dry under sunlight for a day. The banana sheet is formed
after drying.
2. SOFTENING OF CANVAS CLOTH
Canvas cloth is used as a top layer in the sanitary napkin. It is usually
used in making collar of shirts to maintain stiffness. To remove the
starch from the cloth we have to soften by scrubbing it with brush so
that the pore size will be increased and this also increasing the pore
size of the cloth.
3. LAYERING OF SANITARY NAPKIN
Sanitary pad comprises of multi-layered structure in which each layer
has explicit capacity to perform. The Banana fibre sheet is wrapped
up with organic cotton which is covered with Muslin cloth. The whole
setup is again wrapped up with a Canvas cloth.

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Fig 1: - Napkin Layout

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 Marketing Mix

The target market at initial to obtain the mentioned turnover will

be Dibrugarh and Tinsukia. The price of the product will be differed a
bit from the competitors to capture the market at initial. The price of
the product will be differed a bit from the competitors to capture the
market at initial. Promotion will be done by salesmen who will visit
the wholesalers of the town and supply them with price catalogues
along with quantity and cash discounts and with some kind of
quarterly, half yearly and annual sales schemes. Social medias such as
WhatsApp, Facebook, etc. and newspaper advertisement will also be
done. This business will follow intensive distribution i.e. cover as
much market as it can and distribution process will be carried from
factory godown itself.

1. OPERATIONAL PLANT

I. LOCATION OF THE PLANT

Our plant is located at Jokai, Dibrugarh (Assam). The area is

relevant for the plant, the price of the land is affordable and
transportation will be easily done.

II. DETAILS OF MACHINERIES, EQUIPMENTS & PLANT

CAPACITY
The main equipment required for the making of sanitary pads are
as follows –
 Pneumatic Heat-Sealing Machine
 UV Sterilizer
 Measuring and folding equipments
 Drying equipments
 A unit is envisaged to have an annual production of 240000
units on the following basis:
 Production per day at rated capacity: 800 units
 Working days/year: 300 days
 Annual production: 240000 units

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Sanitary pads may be sold in packs of 10 pads.

III. LOCATION AND LAYOUT:

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IV. DETAILS OF RAW MATERIALS & ITS
AVAILABILITY
The main raw materials required are canvas cloth, muslin cloth,
cotton and banana fiber.
Besides the above mentioned, gumming materials are required
as additives. Packing materials include polythene bags, labels and
cartoons. All these raw materials are available in the local market.

V. INVENTORY MANAGEMENT
Inventory management simply means proper stock of non-
capitalized that we produce or are willing to sell. So proper
management of raw materials and finished goods must go hand in
hand. There must not be any gap between the two as new business
will require some amount if stock overflow as we need to make
pushing sales to some extent.

VI. PRODUCTION PROCESS

VI. ORGANISATIONAL PLAN

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1. CONSTITUTION OF THE UNIT -
The Business we are going to start will be Partnership Business
consisting of members.
1. Montu Bhadra (Financial and Marketing Manager)
2. Anannya Dutta (Human Resource and Marketing Manager)
3. Workers (skilled/unskilled)
4. Security persons
5. Delivery persons

2. LEGAL ASPECTS OF THE LABOURER-

We have verified the identity card of the labourers and kept the
copy of ration card and Aadhaar card with us.
We have also given another copy of the labourers’ identity in
labours office.

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VII. FINANCIAL PLAN

1. Statement Showing Profit & Loss Account for the Year ended
31st March 2022-2023

Particulars Amounts Amounts Particulars Amounts Amounts

(Rs.) (Rs.) (Rs.) (Rs.)
2023 2022 2023 2022
To Purchase 7,00,000 5,00,000 By Sales 25,00,000 20,00,000
To Carriage- 40,000 30,000
Inward
To Wages 3,00,000 2,70,000
To Gross Profit 14,60,000 12,00,000
25,00,000 20,00,000 25,00,000 20,00,000
To Salaries A/c 6,60,000 6,20,000 By Gross-
To Electricity 90,000 80,000 Profit 14,60,000 12,00,000
To Carriage-
Outwards 60,000 50,000
To Advertisement 40,000 26,000
To Interest 60,000 60,000
To Tax 55,000 -
To Net Profit 4,95,000 3,64,000

14,60,000 12,00,000 14,60,000 12,00,000

According to accounting standards, since we don’t have any

partnership deed, so the ratio will be divided equally.

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2. Balance Sheet as on 31st March 2022-2023

Liabilities Amount Amount Assets Amount Amount

(Rs.) (Rs.) (Rs.) (Rs.)
2023 2022 2023 2022
Capital 10,00,000 10,00,000 Land & Building 900000 9,00,000
Plant &
Net Profit 4,95,000 3,64,000
Machinery 700000 7,00,000
Long Term
8,00,000 8,00,000
Furniture 240000 2,00,000
Loans
Short Term
Investment 105000 24,000
Cash in Hand 150000 1,40,000
Cash at Bank 200000 2,00,000
2295000 2164000 2295000 2164000

3. CVP ANALYSIS (2022)

 Contribution = Sales – Variable Cost
= 20,00,000 – (8,00,000 + 6,20,000 +80,000
+50,000+26,000)
= 20,00,000 – 15,76,000
= Rs. 4,24,000
 Profit Volume (P/V) Ratio = Contribution / Sales * 100
= 4,24,000/ 20,00,000 * 100
= 21.20 %
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 Break Even Sales (In value) = Fixed Cost / P/V Ratio
= 60,000/21.20%
= Rs. 2,83,019
 Margin of Safety (In Value) = Total Sales – Break even Sales
= Rs. (20,00,000 – 2,83,019)
= Rs. 17,16,981

CVP ANALYSIS (2023)

 Contribution = Sales – Variable Cost
= 25,00,000 – (10,40,000 + 6,60,000 +90,000
+60,000+40,000)
= 25,00,000 – 18,90,000
= Rs. 6,10,000
 Profit Volume (P/V) Ratio = Contribution/ Sales * 100
= 6,10,000/25,00,000 * 100
= 24.40 %
 Break Even Sales (In value) = Fixed Cost/ P/V Ratio
= 1,15,000/24.40 %
= Rs. 4,71,311.5
 Margin of Safety (In Value) = Total Sales – Break even Sales
= Rs. (25,00,000 – 4,71,311.5)
= Rs. 20,28,688.5

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4. RATIO ANALYSIS (2022)
PROFITABILITY RATIOS
 Gross Profit Ratio (GPR) = Gross Profit/ Net Sales * 100
= 12,00,000 / 20,00,000 * 100
= 60 %
 Net Profit Ratio (NPR) = Net Profit / Net Sales * 100
= 3,64,000 / 20,00,000 * 100
= 18.20 %

RATIO ANALYSIS (2023)

PROFITABILITY RATIOS
 Gross Profit Ratio (GPR) = Gross Profit / Net Sales * 100
= 14,60,000 / 25,00,000 * 100
= 58.40 %
 Net Profit Ratio (NPR)= Net Profit / Net Sales * 100
= 4,95,000 / 25,00,000 * 100
= 19.80 %

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VIII. CRITICAL RISKS

1. If the sales margins are not fulfilled, then there will be less profit
and hence loss will be incurred.

2. If the machine will become faulty or stop working, then the

business will stop and there will be loss.

3. Strong competition from several players in this business. So

competitive risk is involved.

4. If there is financial mismanagement, the business might be in

trouble, a financial risk is also involved.

IX. EXIT STRATEGY

There are various different types of exit strategy. We might
1. Sell our business to a larger company or to one of our competitors.

2. Sell to a private equity firm or other investor.

3. Pass it on to a family member or we will sell our stake and let one
of our business partner take over.

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