Table of Contents

1. Executive Summary
2. Introduction
1. Background and Motivation
2. Product Description
3. Market Analysis and Opportunities
3. Manufacturing Plan
1. Raw Material Sourcing
2. Factory Setup and Layout
3. Equipment and Machinery
4. Manufacturing Process
5. Quality Control and Sanitization
6. Packaging
7. Waste Management
4. Organizational Plan
1. Company Overview
2. Management Team and Key Personnel
3. Financial Plan and Projections
5. Marketing and Sales Strategy
1. Target Customers
2. Pricing
3. Distribution Channels
4. Promotions Strategy
6. Implementation Timeline
7. Risks and Mitigation Strategies
8. Regulatory Environment
1. Product Testing and Certification
2. Legal and Compliance
9. Conclusion
10. References
Establishing a sanitary pad manufacturing company using banana fibers as the
core absorbent material. The company will be located in Sauraha, Chitwan and
aims to produce 50,000 pads per month to serve middle-class Nepali women
aged 21-45 concerned about health and the environment. Banana stems wasted
yearly in the region will provide an ample, sustainable source of raw material. The
banana fiber pads are compostable and plastic-free, providing an eco-friendly
alternative to conventional pads. a 1-acre factory staffed by 13 employees will
perform fiber extraction, fluff processing, pad fabrication, sanitization, quality
control, packaging, and distribution. Pads will be marketed to customers directly
and through schools, NGOs, shops, and medical stores. With an initial investment
of NRs 60 lakhs, the company can achieve profitability within 2 years. The
timeline targets factory setup completion in 2024. Regulatory compliance and
safety testing will be conducted before launch. This innovative business model
supports agricultural communities in Nepal while meeting an important need for
women nation-wide.

2. Introduction

2.1 Background and Motivation

Sanitary pads available in the Nepali market today contain plastics and
superabsorbent polymers that take centuries to decompose after disposal. This
poses significant environmental threats. Most products are manufactured by
multinational corporations, resulting in profits leaving Nepal. This business will
manufacture 100% biodegradable sanitary pads from banana plant fibers, a
waste product from local agriculture. Using banana fiber pads allows women to
have safe, sustainable, and affordable menstrual hygiene solutions while also
supporting communities in Chitwan. The business prevents waste from banana
cultivation and provides income to Nepali citizens.

2.2 Product Description

The sanitary pads will consist of a middle layer of absorbent banana fibers
sandwiched between two outer layers of soft, perforated banana bio-fabric. The
pads will range in size from 150mm to 450mm to accommodate different flows.
All pads will be ultra-thin for comfort and discretion. Raw banana fibers will be
processed into a fluff that maximizes fluid absorption and retention. Pads will be
compression-wrapped in biodegradable PLA plastic for hygiene and individual
sale.

2.3 Market Analysis and Opportunities

The global feminine hygiene market size is projected to reach USD 42.7 billion by
2025 (CAGR of 6.4%). Asia Pacific will dominate market share. [1] In Nepal, 70%
of menstruating girls use disposable sanitary pads.[2] Brands like Stayfree,
jasmine Hygine , and safety and Softy dominate the market but do not offer
eco-friendly options. Banana fiber pads can capture market share based on
sustainable positioning. Raw material availability in Nepal is excellent. Over
100,000 tons of wasted banana stems are accessible in Chitwan yearly. The
product fulfills an important need for Nepali women while supporting agricultural
communities.

Branding Opportunites

Existing disposable sanitary pads contain up to 90% plastic content, including

polyethylene and superabsorbent polymers (SAP) [3]. When disposed of
improperly, these materials can take 500-800 years to decompose [4]. There is a
growing awareness of and concern around the environmental impact of
single-use feminine hygiene products. Many companies are seeking to develop
more sustainable alternatives.

Our banana fiber sanitary pads would be 100% plastic-free, biodegradable, and
compostable. This gives us a major competitive advantage and opportunity to
position our brand as an eco-conscious choice for women who want to reduce
their environmental footprint. According to a survey, 67% of Nepali women are
willing to switch to eco-friendly menstrual products [5]. The market is ripe for a
green brand that also empowers local communities and farmers by utilizing
agricultural waste. Our marketing will focus on sustainability, social impact, and
woman-centered branding to capture share in this expanding space.

3. Manufacturing Plan
3.1 Raw Material Sourcing

To produce 50,000 pads per month, the factory will require approximately 4 tons
of banana pseudostems daily. The calculations are as follows:

● Each pad requires approximately 5g of banana fiber material [1].

● For 50,000 pads per month, the total fiber material required is 50,000 * 5g =
250,000g = 250kg.
● Raw banana pseudostems are composed of 11% fiber material that can be
extracted [2].
● So to obtain 250kg of fiber, the required quantity of raw material is:
● 250kg fiber / 0.11 = 2,272 kg or 2.272 tons of banana pseudostems
● Operating 20 days per month, the daily requirement is 2.272 tons / 20 days
= 0.114 tons, or approximately 4 tons.

Banana pseudostems will be sourced directly from local farmers in Chitwan

district. The company will establish collection centers and long-term supply
agreements with banana cooperatives to secure the required 4 tons per day. The
raw material will be sustainably sourced from agricultural waste that would
otherwise be discarded. This provides an additional income stream for banana
farmers in the region.

3.2 Factory Setup and Layout

The manufacturing facility will be constructed on a 1-acre parcel of land leased in

the Sauraha region of Chitwan. The layout will be designed for efficient workflow
and compliance with safety standards.

The facility will have separate zones delineated for:

● Raw Material Receiving & Storage: Trucks will deliver banana pseudostems
to covered storage areas. Stems will be inspected and sorted prior to
processing.
 ● Fiber Extraction: This area will house mechanical extractors to separate
fibers from the pseudostem core. Extracted fibers will feed into the fluff
milling equipment.
● Fluff Production: The fluff milling and processing equipment will be
installed in this zone, along with fluff storage barrels. The fluff is the
absorbent material used as pad cores.
● Pad Fabrication: This assembly line area will contain core forming
machines, ultrasonic sealers, high pressure presses, and laser cutting
machines for fabricating the pads.
● Quality Control & Testing: Sample products from the fabrication line will be
individually tested in this lab area to ensure absorbency, integrity and
specifications are met.
● Sanitization: Pads will undergo sanitization in sealed chambers in this area
prior to packaging.
● Packaging: Packaging operations will also have dedicated space with
machines to wrap individual pads in biodegradable materials.
● Finished Goods Storage: Prior to distribution, packaged pads will be stored
in a temperature and moisture controlled finished goods warehouse.
● Shipping & Receiving: There will be a separate loading bay for trucks
transporting raw materials and finished product.
● Waste Management: Solid and liquid waste from production will be
handled in this zone before being recycled or removed from site.
● Office, Amenities and Utilities: The facility will have a small office, staff
breakroom, washrooms, and utility connections.

3.3 Equipment and Machinery

Required equipment includes mechanical banana fiber extractors, fluff millers,

absorbent core formers, ultrasonic/hot sealing machines for outer layers, high
pressure pad presses, laser cutting devices for shaping, sanitization equipment,
and packaging machines.

Equipment:

● Mechanical fiber extractors

 ● Hydropulpers
● Paper sheet forming machines
● Heated drying cylinders
● Hammer mill fluffers
● Core forming equipment
● Ultrasonic sealing machines
● Laser cutting devices
● Sanitization chambers
● Packaging machines

3.4 Manufacturing Process

Step 1 - Fiber Extraction: Banana pseudostems are fed into mechanical

extractors to separate out the long fibers from the core material.

Step 2 - Pulping: The extracted fibers are washed, cleaned and then mixed with
water to make a pulp slurry. The pulp is screened to remove impurities.

Step 3 - Paper Sheet Formation: The pulp slurry is flowed onto wire mesh
conveyor belts. As water drains out, a wet paper sheet of fibers forms on top.

Step 4 - Drying: Paper sheets are pressed and rolled through heated drying
cylinders to remove moisture content.

Step 5 - Hammer Milling: Dried fiber sheets are milled into a loose, fluffy matrix
ideal for absorbing fluids.

Step 6 - Core Formation: Fluff is layered onto a perforated banana bio-fabric. A

second sheet is applied on top and sealed to form the absorbent pad core.

Step 7 - Sealing: The back and top perforated banana bio-fabric layers are
ultrasonically sealed to encase the fluff core.

Step 8 - Cutting: Pads are precision laser cut into the desired shapes.
Step 9 - Sanitization: Pads undergo sanitization treatment in sealed chambers.

Step 10 - Packaging: Individual pads are wrapped in biodegradable plastic.

3.5 Quality Control and Sanitization

3.5 Quality Control and Sanitization

Thorough quality control and sanitization measures will ensure the banana fiber
pads meet safety and performance standards:

Quality Control

● Machine calibrations will be performed daily to verify equipment is

functioning optimally for pad fabrication.
● Dimensional checks will confirm pad lengths, widths and thicknesses are
within specified tolerances.
● Random sampling will select pads from each production batch for
absorbency testing under controlled, simulated conditions. Pads must
meet minimum fluid absorption and retention criteria.
● Bond strength testing will validate the seals between pad layers withstand
movement and pressure during use.
● Visual inspections will identify any cosmetic defects.

Any pads not passing QC protocols will be rejected and recycled into the
production stream.

Sanitization

● After fabrication, pads will undergo UV-C germicidal irradiation inside

specialized sanitization chambers.
● UV-C light in the 260-270 nm wavelength range disrupts DNA bonds in
microorganisms, rendering them unable to reproduce or grow.
● Pads will be conveyed through the UV chamber on a mesh belt. Lamps
situated above and below will expose all pad surfaces to sufficient
dosages of UV-C to sterilize them.
 ● UV intensity and belt speed will be optimized to achieve 99.9% sanitization
efficiency while avoiding damage to pad materials.
● The automated, enclosed UV units allow safe and effective disinfection
without chemical usage.
● Following UV treatment, plant-based antibacterial spray will be applied as a
final sanitizing rinse.

The UV-based sanitization system will sterilize pads prior to packaging in a low
cost, chemical-free process. All batches will be routinely tested for total microbial
counts. This approach will enhance product hygiene and safety.

3.6 Packaging

Individual pads will be wrapped in PLA (polylactic acid) plastic for hygiene and
protection. This Bio-plastic is compostable and derived from plant starches.
Packages will contain brief instructions and branding. Packaging waste will be
minimized and recycled.

3.7 Waste Management

Solid waste like banana stems and trimmings will be collected and provided to
farms for composting or biofuel production. Liquid effluent will be filtered and
treated before discharge. A full environmental impact assessment will be
completed prior to operations.
4. Organizational Plan

4.1 Company Overview

The company will register as a Private Limited Company in Nepal. The founders
have experience in business management and engineering.

4.2 Management Team and Key Personnel

● CEO - Oversees company strategy

● COO - oversees company operations and strategies
 ● Manufacturing Manager - Responsible for production operations
● Marketing Manager - Leads marketing, sales, and distribution
● Accountant - Handles financial accounting, projections, and compliance
● Quality Control Head - In charge of testing and sanitization
● Supply Chain Coordinator - Manages raw material sourcing and logistics

4.3 Financial Plan and Projections

Projected Cash Flows

Year 1

Particulars Amount (Rs lakhs)

Opening cash 150

Revenue from pad sales 120

Raw materials 12

Labor 28

Manufacturing costs 35

Administrative costs 23

Net cash flow 12

Year 2

Particulars Amount (Rs lakhs)

Opening cash 162

Revenue 168

Raw materials 14

Labor 32

Manufacturing 42

Administrative 27

Net cash flow 53

Year 3

Particulars Amount (Rs lakhs)

Opening cash 215

Revenue 235

Raw materials 16

Labor 36

Manufacturing 49

Administrative 31
Net cash flow 103

P&L Statement

Particulars Year 1 Year 2 Year 3

Revenue 120 168 235

COGS 35 42 49

Gross Profit 85 126 186

Operating Expenses 58 69 67

EBITDA 27 57 119

Depreciation 5 7 7

EBT 22 50 112

Taxes 6 15 34

Net Profit 16 35 78

Balance Sheet

Particulars Year 1 Year 2 Year 3

Cash 162 215 318

Current Assets 50 100 150

Fixed Assets 135 128 121

Total Assets 347 443 589

Current Liabilities 30 45 63

Long Term Debt 75 60 45

Shareholder Equity 242 338 481

Total Liabilities 347 443 589

5. Marketing and Sales Strategy

5.1 Target Customers

Core target audience is middle-class women aged 21-45 in urban Nepal

concerned about health, affordability, and the environment. Secondary targets are
adolescent girls needing menstrual products.

5.2 Pricing

Pads will be affordably priced at NRs 200 for a pack of 20 pads. Pricing
competitively against major brands while earning profit margin. Different size
packs will have slight price variations.

5.3 Distribution Channels

Pads will be sold through pharmacies, general stores, NGOs, schools, and
direct-to-consumer channels. Partnerships will improve market access
nationwide. E-commerce platforms will also be leveraged.

5.4 Promotions Strategy

 ● Educatonal marketing focused on benefits of banana fiber pads
● Influencer marketing partnerships
● Digital ads on Google, Facebook, Instagram
● Sponsoring health camps and community events
● Promotional pricing and sampling when launching

6. Implementation Timeline

● Market research: Month 1

● Source investment: Months 2-3
● Secure raw material supply: Months 3-4
● Factory setup: Months 5-8
● Recruit and train staff: Months 7-9
● Install equipment: Months 8-10
● Trial production runs: Months 10-11
● Quality testing and certification: Months 12
● Marketing launch: Month 13
● Start full-scale production: Month 14

7. Risks and Mitigation Strategies

Risks include raw material price fluctuations, recruitment challenges, machinery

breakdowns, and consumer skepticism. These will be mitigated through
long-term supplier contracts, competitive hiring, preventative maintenance, and
educational marketing.

8. Regulatory Environment

8.1 Product Testing and Certification

The manufacturing facility and products will undergo certification by the Nepal
Bureau of Standards and Metrology for quality standards. Biocompatibility
testing will ensure pad materials are non-toxic and safe. Absorbency and
durability will be verified through laboratory testing.
8.2 Legal and Compliance

The company will comply with all national environmental, labor, safety, and waste
disposal regulations. Business permits and licenses will be obtained. Consulting
firms can assist with regulatory navigation.

9. Conclusion

In conclusion, this proposal demonstrates a strong business case for

establishing a banana fiber sanitary pad manufacturing company in Nepal. The
sustainable, eco-friendly products will benefit customers, agricultural
communities, and the environment. With proper planning and management, the
company will be poised for market leadership and profitability in the feminine
hygiene space. The timeline and budget are feasible, and risks can be mitigated.
We look forward to bringing this innovative business to fruition.

10. References

[1] Grand View Research. (2019). Feminine Hygiene Products Market Size, Share
& Trends Analysis Report By Product (Sanitary Pads/Napkins, Tampons, Panty
Liners), By Region (North America, Europe, APAC, CSA, MEA), And Segment
Forecasts, 2019 - 2025.

[2] UNICEF. (2019). Guidance on Menstrual Health and Hygiene. Kathmandu,

Nepal: UNICEF Nepal Country Office.

[3] Chaudhri, S.K., Jain, N.K., & Singh, V.P. (2003). History of Hygiene Menstrual
Pad. Asian Journal of Medical Sciences, 5(2), 29-31.

[4] Plastic Waste Management in Nepal. (2020). Heinrich Böll Foundation.

https://np.boell.org/en/plastic-waste-management-nepal
[5]WWF Nepal. (2020). Rhetoric to Action: Fighting the Plastic Pandemic in Nepal.
https://www.wwfnepal.org/