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How to set up a Diaper and Sanitary Napkin Business in India?

Plastic Waste

How to set up a Diaper and Sanitary Napkin Business in India?

09 Nov, 2022
Sanitary napkin business

Overview of the sanitary napkin business in India

Over time, the Menstrual Hygiene Alliance of India (MHAI) has evaluated that there are around 336 million menstruating women in India. Out of which, 36 per cent use disposable sanitary napkins — that sums up to 121 million women. Now suppose a woman uses eight disposable pads during one cycle. A simple calculation indicates that approximately one billion sanitary pads are used annually. The count represents the widening scope of the sanitary napkin business in India. This blog focuses on the detailed process for establishing the same. It also highlights some aspects of importing sanitary napkins into the country.

The definition of sanitary waste is included in the Solid Waste Management Rules, 2016. Introduced by Central Pollution Control Board (CPCB), the SWM rules define“dry waste” as any waste other than bio-degradable waste. It also includes inert street sweepings and non-recyclable and recyclable waste, diapers, sanitary napkins, combustible waste, etc. Furthermore, “sanitary waste” implies waste, including used sanitary napkins or towels, diapers, tampons, incontinence sheets, condoms, and other similar waste.

Thus, in July 2018, the Central Government introduced tax exemptions on tampons and sanitary napkins to promote the use of menstrual hygiene products. The step made menstrual hygiene products more affordable and accessible to many menstruators. This was indeed a welcome move for the sanitary pad company in India.

Prominent names emerging as best sanitary pad manufacturing company in India

The Indian sanitary market is somewhat dominated by competent leaders like –

  • Johnson & Johnson
  • P&G
  • Unicharm
  • Mankind
  • Emami Ltd.
  • Edgewell
  • Kimberly-Clark

The major problem to be confronted by the owners of the sanitary napkin business in India

Although lucrative, the option of setting up a sanitary napkin business in India comes with its challenges. One of the challenges is the effective disposal of used sanitary pads or tampons. Upon revising the number of sanitary napkins used mentioned above, it is also evident that India has 12.3 billion disposable sanitary napkins to take care of annually. Shockingly, the majority of these used pads are not compostable/biodegradable.

That said, sanitary waste disposal has become an unavoidable problem in India. The reason is the plastic used in disposable sanitary napkins is not bio-degradable. This, in return, leads to environmental and health hazards. The effect is more noticeable due to the poor community disposal, collection and transportation networks in the villages and cities. Besides, unorganised ways of municipal solid waste management are the other factors that pose a challenge to the growth of the sanitary pad company in India.

To combat the problem to some extent, Solid Waste Management Rules, 2016 were introduced. Besides defining the waste, the rules explain the responsibilities of the local authorities, waste generators and gram panchayats and producers at the sanitary pad manufacturing company in India. All these roles and responsibilities are explained in detail in the following sections.

Roles and responsibilities as stated under the SWM Rules, 2016

Duties and responsibilities of village Panchayats of urban agglomerations and census towns and local authorities

  • Wrap securely used sanitary waste as and when produced in the pouches given by the brand owners of the sanitary napkin business or an ideal wrapping as directed by the local body. This waste must then be placed in the same bin as decided for the non-biodegradable waste.
  • Aware public education, information and communication campaign. They must also educate the waste generators on practising segregation of waste into –
    • non-biodegradable (combustible and recyclable)biodegradable
    • domestic hazardous wastes and sanitary waste at the source

Duties of waste generators

  • No waste generator must bury or burn or throw the solid waste, including used sanitary napkins generated by him, on open public spaces outside his premises, streets or in the water bodies or drain.
  • All waste generators must –
    • securely wrap the used sanitary waste like sanitary pads, diapers etc., in the pouches provided by the brand owners of these products or manufacturers involved in the sanitary pad company in India. The pouches must be of suitable wrapping material, and the disposal should be as mandated by the local authorities. Furthermore, the waste must be placed in the particular bin decided for non- bio-degradable or dry waste; and
    • store and segregate the waste generated by them in three different streams, non-biodegradable, bio-degradable and domestic hazardous wastes, in suitable bins. Moreover, they must hand over the segregated wastes to authorised waste collectors or waste pickers according to the guidelines or rules implemented by the local authorities from time to time.
  • All waste generators must pay the user fee for SWM, as decided according to the bye-laws of the local bodies.

Duties of manufacturers or brand owners of disposable products and diapers and sanitary napkin business in India

  • All brand owners involved in the sanitary or diaper business in India who market or sell their products in non-biodegradable packaging material must put a system to gather back the packaging waste produced due to their manufacturing.
  • All manufacturers of disposable products like plastic packaging, tin, glass, etc. or brand owners introducing such products in the market must offer financial help to local authorities to set up the waste management system.
  • All such brand owners, manufacturers or marketing companies must educate the masses on the disposal and wrapping of their products.
  • Brand owners, manufacturers or marketing firms of diaper and sanitary pad companies in India must explore the likelihood of using all recyclable materials in their products. If not, they shall give a wrapper or pouch for disposal of each diaper or napkin along with the packet of sanitary products.

The time frame for implementation

As the case may be, the necessary infrastructure for implementing SWM rules must be created by the other concerned authorities and local bodies. This must be done by directly engaging agencies or on their own within the specified time frame as mentioned below –

Activity

Time Frame

Enforcing waste generators to practice segregation of recyclable, biodegradable, combustible, inert solid wastes and sanitary waste domestic hazardous at the source.

2 years

Criteria for waste to energy process

  • The SWM stipulate that high calorific wastes must be used for co-processing in thermal power or cement plants.
  • Non-recyclable waste having a calorific value of 1500 K/cal/kg or more must not be disposed of in landfills. Also, such waste must only be used to produce energy by giving away as feedstock for making refuse-derived fuel or via refuse-derived fuel.
  • The local body or an operator of an agency or facility designated by them suggesting establishing waste to energy plant of more than five tonnes per day processing capacity must apply in Form-I to the PCC or SPCB for authorisation.

Market overview of the sanitary napkin business in India

The Indian sanitary napkin market touched US$ 618.4 million worth in 2021. Looking at the statistics, reports anticipate the market to touch US$ 1,185.0 million by 2027, thereby exhibiting a CAGR of 11.31% during 2022-2027.

Import of sanitary pads in India

In addition, to promote sanitary napkin manufacturing in India, the government also relies on the import of raw materials. Unfortunately, India lacks most of the raw materials for making quality sanitary napkins. Hence, import is the only option available. But import duties of up to 10% are imposed on the raw materials required for producing sanitary pads. In addition, there is also IGST, which all adds to the overall product’s cost. Thus, the country imports most of its sanitary napkins from China.

Documents and Licences required by the sanitary napkin business in India

Registration of the sanitary pad company in India

According to the Factory Act 1948[1], the owner of the sanitary napkin business needs to register the unit with local authorities before starting a business.

Documents required for the same are –

  • Photograph of the authorised person
  • Id and address proof of the authorised person
  • AOA
  • MOA
  • Board Resolution
  • Address proof of establishment
  • Expected date of starting the operations at the premises
  • Consent letters from Pollution Control Board
  • Business registration certificate
  • NOC from the fire department
  • Factory layout
  • PAN card of the establishment

BIS IS 5405

This standard covers the need for a sanitary pad for external use.

Documents required for obtaining BIS IS 5405 for sanitary napkin business in India are as follows –

  • Registration Number
  • GST Number
  • Address proof of the office
  • Address proof of the office
  • Details of manufacturing machinery
  • Details of testing equipment
  • Certificate of incorporation, partnership deed
  • Process flow chart
  • Consent Letters from BIS recognised lab
  • Undertaking
  • Quality plan/quality manual/test formats
  • Product Drawing
  • Layout plan
  • Hygienic condition document
  • Copies of test certificates of raw material

IEC

Import Export Code is required for importing sanitary pads to India. Every sanitary napkin business must obtain IEC from the regional joint DGFT.

Documents required are –

  • Import licenses
  • Business Identification Number (BIN)
  • Bill of entry
  • PAN card
  • GST

Trade Licence

Obtaining Trade License for a sanitary napkin business in India is mandatory to carry out operations in a location successfully.

Documents required are –

  • Applicant’s ID proof
  • Address proof of the business
  • PAN of company, else PAN the individual in case of proprietorship
  • Aadhaar card
  • Certification of incorporating in case of Companies
  • Memorandum of Association (MOA)
  • A latest municipal property tax receipt if the premises are owned, else lease document or consent letter of the owner
  • Certified layout plan of the office
  • NOC of the neighbours who own property nearby

EPR

Extended Producer Responsibility (EPR) mandates the producer responsible for treating and disposing of waste in an environmentally sustainable manner.

Documents required for obtaining EPR authorisation for sanitary napkin business in India are –

  • Address Proof
  • Product details, including Model Numbers and Production/Import History
  • Valid BIS license
  • Copy of PAN
  • Self-declaration regarding Reduction of Hazardous Substances (RoHS)
  • RoHS certificate
  • KYC of manufacturer/importer company
  • Name of the authorised person (signatory), full address with e-mail, telephone number, copy of aadhaar card etc.
  • List of all offices
  • Awareness plan, implementation methodology and Budget for EPR and allied initiatives
  • Copies of agreement with TSDFs (Treatment, Storage and Disposal Facilities)

Trademark Registration

Another vital requirement for the sanitary napkin business in India is trademark registration protects the brand from infringement and misuse.

Documents required are –

  • Signed Form-48
  • Copy of the logo
  • Address proof
  • Identity proof
  • Partnership deed
  • Udyog Aadhar Registration Certificate

Applicable QMS standards ISO 9001 minimum

Obtaining the ISO 9001 standard confirms that your sanitary napkin business in India complies with all the seven principles of ISO. It indicates the employment of a better Quality Management System (QMS) in your business.

The documents required are as follows –

  • Quality objectives
  • Scope of the QMS
  • Quality policy
  • Criteria for selection and evaluation of suppliers
  • Records of experience, skills, qualifications and training
  • Product or service requirements review records
  • Record of non-conforming outputs
  • Characteristics of product to be produced and services to be offered
  • Internal audit program
  • Records about customer property

CGWA NOC

It becomes vital to obtain a NOC from CGWA if your sanitary napkin business extracts more than ten cubic metres of groundwater for industrial use.

The following documents are required for the same –

  • CTO
  • CTE
  • Map of the location
  • Flow chart of water requirements
  • Water requirement assessment
  • Self-declaration regarding the certificate of water non-availability or availability from the government waster supplying body
  • Letter of authorisation from the relevant authority

ISO 10993 – 5&10

This particular standard is obtained for intracutaneous irritation and skin sensitisation test.

Documents required for ISO certification for sanitary napkin business are –

  • Applicant’s photographs
  • Address and identity proof of the applicant
  • Electricity bill
  • Rent agreement
  • Copy of sale deed
  • Certificate of Incorporation
  • AOA
  • MOA

CTE and CTO

Consent to Establish (CTE) and Consent to Operate (CTO) are mandatory certificates for every business, including the sanitary pad manufacturing company in India. Either existing or new, any company must obtain authorisation from the respective State Pollution Control Board (SPCB) to carry out the business.

Documents mandated are as follows –

  • Site plan
  • CA letter
  • GST certificate
  • Consent condition form
  • PAN card of the establishment
  • Water bill
  • Ownership proof
  • Aadhaar card
  • Electricity bill

ISO 105-C10:2006 – Textiles

This standard is mandatory to perform the tests for colour fastness.

Documents required for ISO certification for sanitary napkin business are –

  • Address and identity proof of the applicant
  • Applicant’s photographs
  • Electricity bill
  • Copy of sale deed
  • Rent agreement
  • Certificate of Incorporation
  • MOA
  • AOA

Fire NOC

Obtaining a fire NOC becomes an absolute must to comply with the law.

The following documents are required for the same –

  • Application form
  • PAN card of the applicant
  • Site plan
  • Building model
  • Copy of the aadhaarcard
  • Outside photographs of the building

Conclusion

Indeed, India has many mensurating women who must get sanitary napkins for their disposal. But, the nation already has around 12.3 billion disposable sanitary napkins to take care of annually. In addition, the majority of these are not compostable/biodegradable. Thus, there should be exemptions for reusable menstrual products too. So that more and more menstruators can opt for the change. This will also boost the establishment of a recyclable sanitary napkin business in India.

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