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Preface

About PEIXIN Group

PEIXIN International Group is located in Shuangyang Overseas Chinese Economic-Develop Zone, Luojiang

District, Quanzhou. PEIXIN is one of the biggest enterprises in China specialized in production lines dedicated

for manufacturing of daily-use hygiene products.We currently operate a factory in Quanzhou, Fujian

province, which was established in 2006 and covers over 50,000 square meters of land, with nearly 20,000

square meters of production area. Our greatest technological advancement is people. We employ over 450

employees, including 150 specialized technicians and R&D staff. We invest more and more into research and

development and implement advanced management systems because we always want to remain one step

ahead. Since 1994 PEIXIN abides principle of Credit First, Service Supreme, Technology Lead, and Quality

Pledge. PEIXIN has been awarded with many prizes and quality certificates, i.a. China Product Exemption

from Quality Surveillance Inspection, Fujian Province Famous Brand, Contract and Credit Stressing Unit,

Technology Innovative Enterprise.

About Technicaltextile.net

Technicaltextile.net is an initiative of Fibre2Fashion - the world's largest B2B platforms for the global Textile

& Apparel industry. www.technicaltextile.net would depict a global perspective of Technical Textiles - An

emerging sector dominating future trends and technologies in textiles globally. It's also poised to deliver

value added global business connections, facilitating the sourcing and marketing requirement, through

dissipation of knowledge based information to the globe.

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About Peixin International Group

Established in 1985, Peixin is one of the biggest and most professional

manufacturers specializing in Sanitary Napkin Machine, Diaper Machine,

Underpad/Pet Mattress Machine and other Small Paper Making Machines. Our

machines are exported in more than 90 countries and regions, including USA,

Japan, South Korea, Turkey, Poland, and so on.

Peixin International Group joins hands with all customers to create more

achievements. We strongly believe that your success is also our success. Join us

and meet your future at PEIXIN.

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Sanitary Napkin: Overview

“Sanitary Napkins” also known as sanitary pads,

sanitary towels or maxi pads, form an important part

of the gynecological hygiene of every woman.

Sanitary Napkins are absorbent disposable single

use products designed to receive, absorb, retain

menstrual fluid and isolate them from the rest of the

body. It is worn externally, between the vulva and a

woman's undergarment, unlike tampons and

menstrual cups which are worn inside the vagina. It has a porous form that has the

capability of soaking the flow of blood. Hence, menstruating women wear them

during their periods. Some women also prefer using them while recovering from

vaginal surgeries, childbirth or abortion. Today, there are different varieties of

disposable sanitary pads available in the market, ranging from ultra-thin panty liners

to oversized maternity pads. From reusable „rags‟ to disposable „napkins‟, menstrual

pads have indeed come a long way.

In this modern world, sanitary napkins are available in a wide

variety of designs, taking into consideration the style, comfort

and fashion. Some major innovations include quilting of the

lining, introduction of „wings‟, fragrant pads, introduction of

panty liners and reduction of pad

thickness. Nowadays, most women

have their own standard sanitary

brands. Besides, most brands come in

very nominal prices, which have made sanitary napkins a commonplace household

item.

Today, some sanitary pads (sanitary napkins) even come with health features to take

care of the hygiene aspect of women such as sanitary pads with herb and negative

ion (anion). Most popular sanitary napkins / sanitary pads with negative ion (anion)

across the globe is Love Moon Anion Sanitary Napkin.

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Conceptual framework

Sanitary napkin (pad) is a kind of material with absorptive capacity wherein the main

material for cotton core is fluff pulp and Super Absorbent Powder.

It is used to absorb the female menstrual blood from vagina. Its skeleton constitutes

of roughly three layers, namely "Surface" like skin, "Cotton core” for absorptive

function, and the bottom “Back sheet” to avoid leakage.

Sanitary napkins according to shape structure can be divided into no wings, wings,

sanitary pads, including all kinds of extended widening special design. The surface

of the material can be divided into dry net surface and cotton net surface; the

sanitary microbiology characteristics can be divided into 3 classes namely, the

common class, disinfection class and antimicrobial function class.

The sanitary napkin first appeared in the United States, in the 1940s and began to

popularize in Europe and America. The sanitary napkin with its tremendous

convenience was quickly accepted by female consumers all over the world.

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Demand and Supply of Sanitary Napkin

Sanitary napkin demand behavior is a boon for any

manufacturer. It is used by any user once in a month for an

average of 4 days. So for a sizable group of women, it can be

safely assumed that the demand will be evenly distributed in

a month and the quantity required would be fixed. Once

customer is satisfied with the product, usage has almost no

discretionary component and very high brand loyalty due to personal nature of the

product. The only change in demand should really come from new customer

additions. So if the company expects to double its sales, it can be safely assumed

that 50% of sales would have near zero volatility and the rest 50% would have some

volatility based on the firm‟s speed of customer addition (and product switch by new

customers in the initial trial stage).

Today feminine hygiene manufacturers face market maturity in the developed world,

they continue to unearth new market segments and marketing platforms that either

hold onto existing consumers a little longer or lure new consumers at an early age, a

strategy that can be extremely important in this brand loyal category.

Currently, this market is seeing low growth in areas like the U.S. and Western

Europe, where penetration levels are high and populations are not increasing. In

fact, experts say the aging population could be a blow for the feminine hygiene

category as the number of women ages 15-49 declines about 1% by 2015.

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Current scenario of Indian Sanitary napkin market

Indian feminine hygiene market is estimated at Rs.1000 crores per annum entirely

dominated by large MNC‟s like P&G, J&J & HUL. P&G, J&J manufacture in India,

where as the others like HUL, import from China and subsequently are marketing in

the country. P&G is the market leader with its brand „Whisper‟ holding more than

52% market share followed by J&J at 39% and Levers at 5%. She Comfort enjoys

2% market share. Balance 1% sales are shared by eleven smaller companies.

Modern trade (organized retailers) account for roughly 30% of its volumes. However,

the company is forced to give higher discounts to large retail houses. Its contribution

margin is lower for a market segment where it has lower volumes at the moment.

However this has paid off. Its brands are ranked no. 2 or 3 by shelf space in the

large retail format in key cities. In Bangalore it ranks 1st by shelf space in key

Pantaloon locations. Royal Hygiene Health Care has already taken 3rd position

(ahead of HUL) in terms of sales in this format of business in an industry with roughly

11 players.

According to The Times of India, India's latest survey showed that 70% of women in

India cannot afford sanitary napkin and more than 20% of adolescent girls drop out

of school because of menstruation. Since October, 2010, to carry out the survey, a

total of 1033 women in the age of menstruation and 1033 gynecologist were involved

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in the investigation. The results show that in 355 million in the period of the women,

only 12% of people use sanitary napkin, while the remaining 88% of the women will

choose to break the cloth or soot, etc. as an alternative.

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Industry Internal Demand

According to market research and statistics from our customers, now the sanitary

napkin market efficiency is worrying. In urban areas, there are 20-30% women using

sanitary napkin while in rural areas only about 5% women use it. Relying heavily on

the foreign brands, P&G and some other big name company got 90% or more

market, and about 10 % market was left for domestic brand. Market price of sanitary

napkin is about 70 Rupee per bag (8 pcs), still many women cannot afford it or don‟t

want to use it. In recent years, Indian government has invested a lot to improve the

situation and things are getting better and better.

With the data collected by Euromonitor, the total size of the global sanitary protection

market, including pads, party-liners, tampons and wipes, increased from $24.2 billion

to $26.5 billion between 2010 and 2011. Within North America, the category

remained flat at just under $3 billion while Western Europe showed some growth,

from $4.7 billion to $5 billion. Not surprisingly, sales grew considerably in Asia-

Pacific, the Middle East, Eastern Europe and Latin America, and western companies

continue to invest in these high growth regions. In developed regions, innovation has

become necessary to cannibalize sales within the market.

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Market Potentials & Demand forecasting

Today, the global market for absorbent

hygiene products is over US $ 50 bn (including

wipes). The evolution of hygiene products in

Europe and the North America has taken 4 to

5 generations. Feminine care was introduced

over 100 years ago. Feminine hygiene (lady

napkins) is hygiene absorbent products

engineered to absorb and retain body fluid

without causing any leakage. The user should always feel dry and comfortable. It

consists of an absorbent pad sandwiched between two sheets of nonwoven fabric.

There are 3 major types of products, are Thick sanitary napkins, Ultra-thin sanitary

napkins and Panty liners being used in the market. The size of each and their

content vary from market to market.

There is a large Female Group which is not aware of the napkins due to affordability

(because of high cost of MNC napkins), they are not using napkins, by reaching the

particular Female group with suitable pricing, the napkins can be branded very

quickly in local Market.

In developed countries, sanitary napkin market efficiency is more than 98%. Due to

the large population in India, and the great attention from government, the market

demand is growing very fast. The market efficiency has the opportunity to achieve

50% within 5-10 years.

Today feminine hygiene manufacturers face market maturity in the developed world.

They continue to unearth new market segments and marketing platforms that either

hold onto existing consumers a little longer or lure new consumers at an early age, a

strategy that can be extremely important in this brand loyal category.

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Industrial standard

Industrial performance indicators of a sanitary napkin are mainly deviation,

permeability, water absorption rate, pH value, back glue adhesive strength and water

delivery. The permeability and the pH value are enforcing provisions whereas the

remaining are recommended indicators.

Health indicators refers to the total number of bacterial colonies, coliform group and

pathogenic bacteria staphylococcus aureus, pseudomonas aeruginosa, hemolytic

streptococcus, fungal colony. Sanitary napkin products are physiological health

supplies and therefore unqualified health indicators may directly endanger human

body health.

Deviation: Length deviation, width deviation, and the quality deviation represents the

uniformity of the product. The same specifications of the products should be uniform,

and should not have different length, different width, thickness, or affect the use.

Permeability: Permeable performance including infiltration capacity and front

horizontal permeability width, represent the absorption performance of the product.

If infiltration capacity is small, front horizontal permeability width is wide, then it

means product permeable performance is bad, cannot accomplish when using liquid

absorption and will leak. Regarding permeability, superior product should have ≥3.9

g, first-rate should have ≥2.9 g, qualified products should have ≥1.9 g. It represents

in a certain period of time to absorb the amount of water. If the water absorption rate

is higher, then the water absorption performance will be better. Standard

requirement for sanitary napkin is ≥9.0 times, whereas that of sanitary pads is ≥ 3.5

times.

pH Value: pH value means acid or alkaline of products. Sanitary napkins are in

direct contact with human body. Therefore the acid alkali is neutral and has minimum

irritation to human skin. Superior product pH value is from 5.5 to 8.0, first-rate

product pH value is from 5.3 to 8.2, qualified products pH value is from 5.3 to 8.2.

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Back glue adhesion strength: This refers to adhesion strength of back glue of

sanitary napkin products. Whether the back adhesive strength is too big or too small,

is not conducive to the use of the product. It should be controlled in an appropriate

range, which should neither make the product fall off easily, but at the same time

should also be easy to peel away.

Delivery of water: Too much water contained in sanitary napkin products can cause

mildew which is a breeding ground for bacteria. Hence delivery of water is essential

and the standard requirement is no less than 10 percent.

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Desired Properties of Sanitary Napkin

The important and desired properties in the sanitary napkins

are as follows:

Comfortable to wear,

Hygienic,

No Leakage,

No noise,

No odour,

No unaesthetic appearance or colour,

Stay in place

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Raw Materials for Sanitary Napkin

Absorbent Paper

Back sheet (Polyethylene)

Both sides adhesive tape

Cotton

Cover stock / Top sheet (Nonwoven or perforated Polyethylene)

Dry-laid nonwoven

Glue

Net

Other packaging materials

Packing paper for individual piece

Paper Core

Paper Tape on the wings

Polyethylene film

Pulp

Pulp wrapping paper

Release Paper

String

Sub layer / Acquisition layer

Super Absorbent Powder

Tissue paper (2 ply)

Transfer Layer

Waterproof laminate paper

Wood Pulp Core (Fluff) / Air laid Core

Wrapping paper (45 gm/m2)

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Manufacturing Process

The technology of producing sanitary napkin differs depending on the raw materials

used, the shape of finished products, the size, etc. Therefore, there is no fixed

method of manufacturing and processing. The prime requisite of sanitary napkin as a

product is cleanliness having good absorption, strength against leak, fine feeling to

the touch, stability and adaptability to bodily movement, and no breaking or getting

out of shape.

The production process is a step by step cutting, folding and rolling the var ious

components of the raw and auxiliary materials required for the product. The activities

are done sequentially so that the final product will have good absorption and strength

against leakage. After the napkin is covered by laminated paper, adhesive tape is

stripped horizontally so as to fix the napkin to the position in order to have stability to

bodily movement.

Finally, the napkin is packed by polyethylene films. With regard to production of toilet

paper, the roll of raw material is first fed to the machine adjusted to slit the soft paper

to the width of the finished product. Paper cones prepared for the purpose are put

onto the machine. The soft paper is then wound onto the paper cone until it reaches

the required thickness. The machine is then operated to produce market size soft

papers. Each piece is then wrapped with polyethylene film.

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Process Description

The main raw material is cellulose pulp in rolls. The pulp goes through a

cylinder mill, where it is fluffed. The entry of the pulp roll is regulated by a

speed variator so does the weight.

A super absorbent powder can be applied at this stage on the fluffed pulp.

The fluffed pulp goes on top of a tissue paper layer which is folded in “C”

form, in order to obtain the standard width of the napkins.

For the production of sophisticated napkin, it is also possible, at this stage, to

insert an liquid along their whole length of the napkins.

This continuous line of pulp and tissue is then cut by a rotary knife at the

required length.

A poly film to protect the bottom part of the napkins is also inserted.

The resulting pads are then spaced and passed on the non-woven fabric

covering which is then embossed and cut by a die cutter roll adequately

shaped for the napkins with wings, or for napkins with round ends without

wings.

A permanent multi-lines adhesive, protected by a silicoated paper strip is

applied on the nonwoven back sheet, while self-adhesive tabs are applied on

the wings.

The finished product with the folded wings is delivered to an automatic

counter and stacker unit, which counts and discharges, in a pre-selected

number, the finished napkins.

The operator will insert by hand the pre-counted groups of napkins inside

plastic bags.

These bags are then sealed by a separate sealing machine.

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Sanitary Napkin Equipment Investment Feasibility Report

Here we summarize many factors which influence the investment to set up the

project, as following:

Sanitary napkin machine production speed (Approximately)

Type Pcs/Min Pcs/Hour

60 Min

Pcs/Day

8Hours

Pcs/Month

26Days

Pcs/Year

12Month

Full-servo Sanitary

Napkin Machine 600 36,000 288,000 7,488,000 89,856,000

Semi-servo Sanitary

Napkin Machine 550 33,000 264,000 6,864,000 82,368,000

Full-auto Sanitary

Napkin Machine 500 30,000 240,000 6,240,000 74,880,000

Semi-auto Sanitary

Napkin Machine 400 24,000 192,000 4,992,000 59,904,000

General configuration of setting up a factory needed.

1, Factory area requirement.

a) For machine:

From the beginning Fluff pulp shelf to the end packaging area,

Total length for the machine is 28m.Width 4m needed.

Total area should be 28m*4m. (Length*width)

Height of the machine is 3m, the roof is 5m needed.

b) For warehouse:

Since most of raw materials are imported, so you may need 1 month raw material

storage at least. Total area about 50 m2.

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c) For office:

Due to the noise made by the machine, the office is better away from factory.

2, Labour requirement.

Total 8 persons required for a complete line from fluff pulp shelf to final packaging.

They are:

2 persons needed to run and maintain the machine;

1 QC needed to inspect the defects, mark the final products, send to pushing

machines;

2 persons needed for pushing machine;

2 persons needed for sealing machine;

1 person for final packaging

3, Power supply: 415V, 50Hz.

The machine power from PEIXIN COMPANY will be 380V, 50Hz. Transformer will be

prepared by customers.

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4，Equipment vertical view

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5, Cost calculation for sanitary napkin

I, Winged Type, size 255mm

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Material Gsm Length

(mm)

Width

(mm) Square

Weight

(g)

Purchase Price

(USD/Ton)

Total

Amount

Fluff pulp 5.6 820 $0.005

SAP 0.5 2950 $0.0015

Hydrophilic N.W.

Fabric(Top sheet) 15 255 160 0.041 0.61 2460 $0.0015

Tissue paper 15 150 210 0.0315 0.473 1950 $0.001

PE film(Back sheet) 26 255 160 0.036 0.94 1900 $0.0018

Wing release paper 42 60 45 0.0027 0.113 1950 $0.0002

Back release paper 42 150 45 0.0068 0.29 1950 $0.0006

Hot melt glue 0.2 2950 $0.0006

PE film(Small

package) 26 255 120 0.003 0.78 1900 $0.0015

Easy tape 28 10 0.01 $13.5/Roll

800M/Roll $0.0002

Total cost per pc: 9g/PC $0.0139

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II, Straight type, size 235mm

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Material Gsm Length

(mm)

Width

(mm) Square

Weight

(g)

Purchase Price

(USD/Ton)

Total

Amount

Fluff pulp 6.68 820 $0.0055

SAP 0.5 2950 $0.0015

Hydrophilic N.W.

Fabric(Top sheet) 15 235 84 0.02 0.3 2460 $0.0007

Tissue paper 15 150 221 0.033 0.5 1950 $0.001

PE film(Back sheet) 26 235 84 0.02 0.52 1900 $0.001

Back release paper 42 180 40 0.0072 0.3 1950 $0.0006

Hot melt glue 0.2 2950 $0.0006

Total cost per pc: 9g/PC $0.0109

6, Shipping cost and shipping time

Since the shipment cost changes every month, here we use price of Sept.2013.

Shipping cost 40”HQ/40”GP 20”GP

From Xiamen to Chennai USD$1,400

VIS SGP

USD$900

VIA SGP

For the sanitary napkin machine, three 40”HQ are needed. And for raw materials

shipment, 20”GP is needed.

7, Tariff

a) For the machine:

Basic Duty: 7.50%, Countervailing duties (CVD): 12%,

Special Additional Duty (SPL.CVD): 4%,

Total: 23.5%

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b) For raw materials: Tariff is 28% of total value. If customer sells legally, pays

business tax, they can have 10% drawback from government. That means

finally there is 18% being collected.

c) For final product sanitary napkin: Tariff is 22% of total value. If customer sells

legally, pays business tax, they can have 4% drawback from government.

That means finally there is 18% being collected.

8, Official documents requirement.

For Customs clearance documents:

1. Invoice

2. Packing list

3. Certificate of origin

4. The SGS inspection

Basic document for opening a company:

1, Need to register company under Technical Textile industry

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HLL Lifecare Limited, our successful case in India

We are so proud of HLL

Lifecare Limited who is

working with the government

aim at providing low cost sanitary napkin for working class women in India.

In August, 2011, HLL began to order sanitary napkin machine from Peixin

Company. 5 months later the machine was shipped to HLL Company and began

the production.

The sanitary napkin they are making now

is 230mm, without wings, simple structure

and low cost. (As shown in the pictures).

Due to the growing market of the sanitary

napkin in India, production speed of one

full-automatic sanitary napkin cannot catch

the growing speed. In May, 2013, HLL

Company ordered another full-servo sanitary napkin machine from us. The

machine now is in the making and will not take a long time to reach HLL factory.

We will always keep in touch with HLL Lifecare Company and all Indian

customers. We hope to engage with more customers so that we can provide the

feasibility of setting up the sanitary napkin project. We will offer professional

advice and necessary technical support with warm heart.

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