ASHA SANITARY NAPKINS

Financing Happiness to Millions of Women

Executive Summary

The attainment of puberty in women is signified by menarche, the age of onset of

menstruation. During menstruation, use of some kind of a protection in the form of a pad or
napkin is mandatory and the kind of sanitary protection practiced during menstruation can
determine the hygiene of a woman and can affect her reproductive health levels.

However, because of the high price of the current market offerings, a large portion of the
female population, especially those in the low-income segment are not able to purchase
sanitary napkins. Finding no other options, these women then resort to using less hygienic
methods. As a result, they are highly vulnerable to life threatening diseases. Apart from the
health implications, women are also often forced to miss out on school or work.

To address these issues, we are introducing Asha Sanitary Napkins. These napkins will be
priced much lower than existing market offerings and will allow a much larger portion of the
population to have access to proper sanitation. Increased use of the product will also lead to a
healthier female population and lower levels of absenteeism in schools and various work
places.

The lower prices are made possible by the use of an innovative new machine which costs a
lot less than traditional machines, the use of recycled raw materials and an efficient
marketing and distribution system. The use of the recycled material will make the product
more environmentally friendly thus adding more value for society.

Even though there are plenty of companies producing sanitary napkins, none of them market
any of their goods for the low-income population. The market is therefore largely untapped
and waiting to be catered to. What makes a venture in this market even more promising is
that the market is consistently growing.

With a growing market and a social cause at stake, Asha is a one of a kind unique business
idea that serves the basic women need while making money in the process.
Table of Contents
Sl. Page
1 Business idea 4

2 Market analysis 5-6

3 Marketing aspects of Asha 6-7

4 Factors that will make Asha feasible 8-9

5 Funding mechanisms of Asha 9-11

6 Mitigation of key risks associated with Asha 11-12

7 Key rationales - why IDLC should finance Asha 12-13

8 Conclusion 13
Business Idea

Asha sanitary napkins are cost-effective three-layered tie-side sanitary napkins made from
recycled cotton waste. Asha aims to address the lack of inexpensive, healthy sanitary choices
available for low income women of Bangladesh. 14 million women in Bangladesh menstruate
every day, 80% of them cannot afford the sanitary napkins currently available in the market.
These women resort to sand, leaves, mud and unsterilized clothes or rags as alternatives to
sanitary napkins. A UNICEF survey shows that –

1. 80% women stored their menstrual cloth in a dirty place for repeated use
2. 40% failed to change or wash the cloth
3. 50% failed to dry the cloth outside in full sun which is essential in killing bacteria
4. 40% of the girls surveyed said to have missed going to school during menstruation
The unhygienic means of sanitation leave women vulnerable to life-threating diseases.
Vaginal and urinary tract infections may lead to infertility and reproductive health
complications. Some cases lead to cervical cancer. These women either die due to terrible
medical conditions or are socially stigmatized.
Asha is the solution to all these problems. Made from recycled cotton waste and minimal
synthetic waste, the napkins are affordable for most women and also environmentally
sustainable. Health complications are eliminated as no petrochemicals or additives are added.
Four strings attached to either side of the pad helps to keep it in position.
Each pad costs around Tk.0.80-1.00 to make. Bangladesh is one of the largest manufacturers
of garments in the world with an estimated 250 kg of waste produced by a typical factory per
day. The huge availability of raw material and reasonably priced machinery makes the
production of Asha napkins an excellent business proposition that aims to address a social
cause while making money in the process. The product can be modified to cater to the needs
of the higher income segment with greater purchasing power, further expanding the huge
target market available.
Machines used to make sanitary napkins cost about Tk.90 lacs-3 crore. The machine used for
Asha would cost a meager 1 lac/unit. Each machine can make 120 napkins/hour. Using
economies of scale and mass production, operating efficiency can be increased by many folds
and overall costs trimmed down.
In summary, the main objectives of Asha sanitary napkin are –
1. Provide hygienic sanitary napkins to low income women at cost-effective prices
2. Reduce the number of medical cases caused by unhealthy sanitary choices.
3. Expand to attract the urban population with efficient marketing.
Market Analysis
In the past 15 years, Bangladesh’s local sanitary napkin industry has grown fast. Thus,
consumers are able to get the products that are locally produced at very competitive prices.

According to the industry experts, currently there are around 20 local brands that exist in the
market with total market size of Tk. 25 crore, approximately.

The home brands that currently seize more than 80% of the total market share include –

 Senora
 Monalisa
 Savlon Freedom
 Smile
 Cottex
 Rose
 Nirapad
 Modex
 Softe
 Joya

Industry insiders credited the growth to the awareness of hygiene issue, reproductive health,
and the improved number of working women in recent years.

The following are some of the sanitary napkins available in the market and their respective
prices:

Name Napkins/pack Price Price/Napkin

Joya Regular 8 70 8.7
Monalisa Ultra Super 10 110 11
Monalisa Wings Regular 10 105 10.5
Savlon Freedom Napkin 10 110 11
Savlon Freedom Regular Wings 20 200 10
Savlon Freedom Smart Regular Flow 8 55 6.9
Savlon Freedom Ultra 8 120 15
Savlon freedom Wings 10 110 11
Whisper Maxi fit XL Wings 8 133 16.6
Whisper Ultra Clean Sanitary Napkin Wings 8 141 17.6
Whisper Ultra Clean Sanitary Napkin Wings 15 253 16.9
Senora Confidence with Wings 10 110 11
Senora Confidence with Wings 16 150 9.4
Senora Confidence Ultra with Wings 8 95 11.9
Senora Sanitary Napkin Belt 10 90 9
Senora Sanitary Napkin Economy Panty 15 120 8
 Senora Sanitary Napkin Economy Belt 15 120 8
Senora Sanitary Napkin Panty 10 90 9

The prices are an indication of why low-income women cannot afford these expensive
sanitary napkins. 8 pad packs cost Tk.9/pad on average whereas the packs with 20 pads cost
around Tk.11/pad on average. Asha Sanitary napkins costing Tk.6/pad will easily be the
lowest available product without compromising quality with prices coming down further
when the market is penetrated and customer base increases.

Marketing Aspects of Asha

Product

The design of most sanitary napkins in the market requires women to wear underwear in
order to place the pad. The majority of women find it uncomfortable to wear underwear at all
times, since it causes perspiration, irritation and decreased air flow. Asha Sanitary Napkin’s
design is revolutionary in this light, because with the help of elastic strings, women can use
the pad without having to wear underwear.
The low price of Asha does not reflect its comfort level. There will be no compromise with
comfort. The pads will feel soft and delicate. From the very first usage, the consumer will be
able to differentiate her experience from using reusable cloths.
Most sanitary napkins contain chlorine bleach, which is used to make the pads extra white.
Chlorine bleach produces toxic byproducts. No such harmful chemicals will be used in Asha
Sanitary Napkins. Our product will be the safest sanitary napkin in the market.

Price

Direct cost - Asha will penetrate the market using pricing strategy. Price is the winning
factor of our product. Asha will be the cheapest sanitary napkin in the market. It will be sold
at Tk.35 per packet. There will be 8 pads in a pack, resulting with per pad costing
approximately Tk.4.5 for the customer. None of the available competition in the market can
beat our price. This information can be seen from the table provided earlier (in the Industry/
Market Analysis segment of this business plan) about the pricings and packaging size of
some of the market competitors.

Indirect cost – The indirect cost incurred by the customers is the opportunity cost of giving
up reusable cloths. It is a clear argument that the cost incurred in using cloths during
menstruation is the lowest. This is due to the fact that cloths are reusable. But as the country
develops and its people want to increase their standards of living, reusable cloths have to be
substituted with disposable pads. During this substitution process, Asha Sanitary Napkin will
prove to be the cheapest alternative. Also, the benefits of comfort and hygiene that the
customers will receive from using Asha, will cover up this indirect cost.

Place
When the product is first released in the market, we will concentrate in the areas of Dhaka,
Savar and Gazipur. If the product is positively received by the customers and proves to be
successful in these areas, we will increase location coverage to the other major cities of the
country, such as Chittagong and Sylhet.
The reason that Dhaka and neighboring areas have been chosen as the distribution locations
is that these are the regions with maximum economic activity. People from all over the
country migrate to these regions to look for work and employment. Our target consumers are
low-income families. The mothers of these families mostly work in the RMG sector. There
are huge numbers of garments factories in the chosen sales region, which means the workers
along with their families, live in these areas. We should get maximum response from selling
here.
The low-income families live in cheap urban settlements. We will locate such settlements and
distribute Asha Sanitary Napkins in small shops closest to the settlements. We will contact
small retailer shops where the families buy other necessity items from. The retailers will be
given a commission on the amount of sales they make.

Promotion

Sales Promotion

1. We have an existing strong network with garments factory owners. We will use this
network to visit a huge number of factories and promote and raise awareness about
Asha Sanitary Napkins among the workers.

2. We will conduct awareness campaigns in public schools about the benefits of using
disposable sanitary napkins over reusable cloth. In these campaigns, we will introduce
Asha Sanitary Napkin. In public school we can reach out to girls from low-income
families who aspire for a better way of life and will embrace this cheap and better
alternative to using cloth during menstruation, with open arms.

Advertising

The main forms of advertising we will use are posters around the working areas and
educational institutes of the low-income families, so that Asha becomes a household name
that is known by everyone. We will use cardboard cut-outs and attractive advertising in the
retail shops where Asha Sanitary Napkins will be available in order to draw customers’
attention to buy or at least ask about the product to the shopkeeper.
There are future plans of creating TVC, which will not be executed at the very initial stage of
production. After some positive response is found from the market, TVC will be released in
channels that are mostly watched by the targeted segment. The TVC will be aired at
particular times of the day when viewers are most expected to be watching television. The
TVC will not be starring a celebrity, but instead, common people. The problems of common
people and the solutions to these problems that Asha Sanitary Napkins will bring will be the
story of the TVC.
Factors that will make Asha feasible

 Huge target market –

Despite the health risks associated with unhygienic period, sanitary napkin
penetration rate in Bangladesh is very low at around 14%. Most women still use
unhygienic cottons and clothes during period. As a result, 92% women suffer from
Urinary Tract Infections which can lead to infertility and cervical cancer. The major
reason behind this low penetration rate is the high price of sanitary napkins.

As mentioned earlier, 80% of women cannot afford these expensive options currently
available in the market. With a population of 7.5 million females aged 10-55 in Dhaka
alone, there is a potential to reach a huge market. Estimating a sale of two packs every
month per woman, the demand reaches an astounding 15 million packs every month.
Depending on the product’s success in and around Dhaka, the reach can be extended
to every part of Bangladesh, specially the Chittagong Hill Tracts where women do not
have access to even the most expensive options.

As of 2014, around 69 million females live in Bangladesh belonging to the 10-55 age
demographic, 80% of which would be 56 million females.

In summation, with a meager 14% penetration, no low-cost options available, and

potential 56 million customers, there is a huge untapped market that can be catered to.

 Constant demand for product –

Asha is a unique product with an absolute need. Simply put, Asha addresses a key
need for nearly half of the population. Unlike most products, Asha is immune to
societal or cultural shifts and the demand will only increase with increasing
population.

Let’s take the case of a common garments worker. With an estimated lifetime of 70
years, that girl menstruates for 40 years. Given that she menstruates for 40 years, 12
months a year, that is approximately 500 months in her lifetime. The girl requires two
packs a month. Assuming she stays loyal to Asha, that is a sale of 1000 packs to the
garments worker alone in her lifetime.

From the ages of cavemen to the current 21st century, menstruation has remained the
same for every woman. Asha is a product that leverages this unique aspect.

 Low production cost –

The main costs associated with the production of Asha Sanitary Napkins are –

1.Purchase of machinery from India

2.Renting of medium-sized indoor facility
 3.Wages of employees
4.Purchase of cotton waste and packaging

The machinery is imported from India. A similar initiative is run in India and the machines
are readily available there. Each piece of machinery cost Tk. 90,000 with overall cost coming
down if bought in bulk. A medium-sized indoor facility is estimated to cost Tk.50,000/month
to rent. We plan to hire employees who are unemployed since little to no training is required
to run the machines and the wages can be kept low while offering employment. Cotton waste
can be bought from textile industries, known as “jhoot” and costs Tk.10/pound.

Funding mechanisms of Asha

Funding Mechanisms

Four of us will form a limited liability company in order to enjoy the features of both a
corporation and a partnership. The members of the company will have limited liability in case
the business incurs debts. We can enjoy the benefits of tax efficiencies by not having to pay
separate corporation taxes. The operation of the business and sharing of profits and losses
would remain simple.

Equity
The 4 members of the company will each provide Tk.100,000 creating a total of Tk.400,000.
This will be the initial capital invested by the owners to import one machine for the
production of the sanitary napkins. With this one machine we will carry out a test run
production and conduct usability tests to detect any defects or problems of the product. We
will then distribute the product for free among a group of women from whom we will also
take feedback. This will allow us to get to know how customers may perceive the product
once it is launched in the market in large scale.

IDLC Financed Loan

We wish to take up an SME Loan of Tk.2,000,000 from IDLC. Below is a breakdown or an
estimated approximation of the costs that we will incur in setting up the business:

Details Tk.
3 months’ rent 150,000
Machineries (9 of them) 720,000
Raw Materials (for the first 2 months) 850,000
Wage (for first 3 months) 90,000
Business registration costs 5,000
Utility Bills (for first 3 months) 24,000
Total: 1,839,000

Collateral

IDLC offers loans of up to Taka 15 lacs without any collateral. Since, we are asking for a
loan of Taka 20 lacs, we will be providing a land for collateral of up to 6 lacs. One of the
members of the company has inherited paternal land in Gaibandha, Rangpur.
Market price of 0.5 acres of the land is Tk.600,000. This will be provided against the loan.
If any further collateral is required, IDLC can take over the machines the company will buy
from India, which are each worth Tk.90,000. 10 machines total a net worth of Tk.900,000.

Tenure
We wish to draw up a contract of tenure of 2 years. We will be able to raise the money to pay
back the loan along with a maximum interest of 11% in one year. But distributing the
payback over 2 years would allow greater liquidity and stability for the business. The
company’s stability would surely be an important factor for IDLC as well.

Letter of Credit

We will be importing the machines from India. We will require two Letters of Credit from
IDLC to support us in this process. The first Letter of Credit will be required when we buy
the first machine using owner’s capital invested, to run the usability test. The second one will
be required when we buy the rest of the 9 machines, resulting with a total of 10 machines to
run our production.
We will require a guaranteed cash flow for basic expenses of the first 3 months because we
cannot afford any type of uncertainty by depending on cash from sales. After 3 months of
business, we are expecting to generate enough cash revenue, to pay expenses in the months
thereafter.
Pay back through revenue generation

We are targeting to sell 45000 packets per month. The price per packet being Tk.35 over a
period of 12 months, we should generate Tk.18,900,000 in sales revenue.
(The sale of 45000 packets per month is an average estimation. Sales during the first months
may be lower than the average, and then subsequently may even increase over time to a lot
more than the average.)

Projected Income Statement (on a yearly basis)

Description: Tk Tk Tk
Revenue (Selling price = 35) 18,900,000

(less) Cost of goods sold

Wood Pulp 2,800,980
Top Layer 1,193,400
Back Layer 228,150
Release Paper 105,300
Gum 386,100
Packing Covers 473,850
(5,187,780)
Gross Profit: 13,712,220

(less) Monthly Administrative expenses

Rent 600,000
Electricity 72,000
 General Admin Expense 60,000
(732,000)
(less) Labour Charge (360,000)
(less) Marketing and Distribution expenses (1,500,000)
(less) Maintenance expense (500,000)
Net Profit: 10,620,220

Mitigation of key risks in Asha

 New competitors in the low-end market –

The current available sanitary napkins in the market are priced between Tk.70-120
depending on design and number of pieces per pack. With the introduction of a
newer, much affordable option the market leaders may be tempted to bring cheaper
alternatives of their own to capture the low-income segment. Due to the price-
sensitive nature of the targeted market segment, potential competitors will create a
price war which will be difficult to mitigate.

We intend to tackle this by capturing the market early through guerilla marketing
around slums and garments in order to attract a huge number of women at once.
Moreover, big brands have a certain standard to maintain and introducing a low-end
product may hurt their established brand image. Furthermore, with increased
operational efficiency and through economies of scale, the cost of producing Asha can
be further reduced.

 Potential disruptions in the supply chain in the expansion phase –

After the initial trial run in educational organizations and garment factories, the
primary phase is to target the women in and around Dhaka, with special focus on
women living in slums and RMG workers.

Depending on the success of the primary phase, we intend to expand the business to
realize the objective of reaching out to the 69+ million women of Bangladesh in the
age bracket of 10-55. The expansion requires a massive upscale in supply chain with
investment in equipment, physical space, marketing and sales. The risks that lie in the
expansion is a potential breakdown in the supply chain.

To tackle that risk, we aim to open a localized center at every district in Bangladesh,
manufacturing adequate amounts of napkins to provide for the population in the
respective regions. Retailers are the main selling point while local women will have
an option to buy bulk of napkins and sell them in their respective villages.

 Political scenario –
 The current political scenario of Bangladesh is stable with 7% economic growth
leading the way towards gaining the status of a middle-income country. Despite that,
the political situation in the country can change at any given moment. Businesses run
a risk of being shut down due to such situations.

The relative availability of raw materials (cotton waste) and the fact that the
operations are run in indoor facilities, Asha is safe from the qualms of political unrest.

 Acceptance of the product –

Every new product runs the risk of failing in the market. Despite being inexpensive
and of high quality, Asha may not perform well in sales, a risk run by any business.
We believe that through proper marketing and sufficient funding, the word of mouth
will separate about the product and women will realize that the small amount of
money spent on Asha can protect them from life-threatening diseases.

Key Rationales – Why IDLC should finance Asha

1. Bottomless market – Sanitary napkin is a product with a never ending demand.

Women aged 10-55 go through the menstruation cycle every month, creating a huge
pool of potential customers. The market segment targeted by Asha Sanitary Napkin
remains untouched by any other company as of yet. This means that once Asha is
successfully launched, there will be a continuous and steady level of sales. This
constant revenue generation guarantees loan and interest payback, which is the
primary concern of IDLC.

2. Financing happiness – Asha Sanitary Napkin lifts the problems that women from low
income level families face every month. Unable to purchase the expensive sanitary
napkins existing in the market, these women turn to the traditional method of using
cloths during menstruation. The usage of a hygienic, disposable medium of protection
during menstruation will be a step to improve the lifestyle of this society. The
difference in comfort and care of using cloth and sanitary napkins can be easily
understood from usage. Sanitary napkins provide superior customer experience. Thus,
by financing Asha Sanitary Napkins, IDLC will be fulfilling its stated tagline mission
of financing happiness in these women’s lives.

3. SME portfolio – Supporting this project will contribute to the fulfillment of IDLC’s
objective to aggressively grow its SME portfolio.

4. Eco-friendly – Our primary raw material will be collected from what is considered
industrial waste. Cotton that is considered waste by most RMG factories will be
collected to make Asha Sanitary Napkin. The production of the product uses zero
 chemicals or environmentally harmful materials. The product itself is biodegradable.
Therefore, not only the product but also the production process is environmentally
friendly. IDLC will be complying with its core value of promoting eco-friendly
business practices.

5. Equal opportunity – IDLC has devoted an entire program in its SME division for
women empowerment, IDLC Purnota. By supporting and financing Asha Sanitary
Napkin, IDLC will be promoting the value of equal opportunities for men and
women. By using this product, girls will no longer miss school. Women will not have
to miss going to work. IDLC will be empowering women to get equal education and
working opportunities.

Conclusion

Asha Sanitary Napkins is a unique business concept that tackles a sensitive social
problem prevalent in our country while also making good money out of doing so. With
the help of IDLC, the project initiated by us can truly “finance happiness” for millions of
women who cannot afford what is a basic need. The thought of women having to use
unacceptable means such as sand or unsterilized rags led to Asha Sanitary Napkins with
the aim of empowering women. We believe no girl should have to miss school because
she is on her period and no working lady should miss her shift for the very reason. With
Asha Sanitary Napkins, women will bleed with pride.

With the anticipation that IDLC will show faith in this project, we hope to sit down with
you to discuss interest rates and repayment options. IDLC finances innovative businesses,
supports eco-friendly practices, loves simplicity and integration – we believe Asha is a
project that fits all that. We hope to do business with IDLC soon. Let’s finance happiness
together and be the best friend of millions of women in this country.