Start Sanitary Napkin business at just Rs 15,000 and earn upto Rs 1 lakh; govt will help you with funds
news 2 min read
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.
(All data, figures source attributed to msme.gov.in)
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