A Decade in MHM and I’ve Never Written About It
Today is Menstrual Hygiene Day.
Since the year (2014) it was founded, I’ve always marked this day with a post, a talk, or a reflection.
For the last couple of years, I was at business school, which gave me the space to reflect both on the journey of menstrual health access in India and globally from a macro perspective, and Saral Designs’ role in that landscape.
Our company was acquired in 2023, and while that marked an endpoint of my journey, it took me a while to assimilate what we had built, learned, and witnessed over nearly a decade.
Thanks to a recent inspiring deep dive with colleagues at Menstrual Health Action for Impact (MHAI), I realized how much data, insight, and lived experience is still sitting in the minds of practitioners (my team included!) and how important it is to share those lessons in the service of the sector.
So this post is an attempt to do just that.
Not a white paper.
Just ground-truths from the past 10 years.
The Backdrop: Saral Designs and a Decade in MHM
From 2015 to 2023, I co-founded and ran Saral Designs with Kartik Mehta, a hardware-based social enterprise that aimed to make menstrual products more accessible through decentralized manufacturing. We partnered with:
- 150+ small entrepreneurs across 13 countries in South Asia and Africa
- Partnered with funders like USAID, Grand Challenges Canada, and multiple CSRs
- Worked with national and state governments and local stakeholders
We operated during a time when menstrual health in India shifted dramatically:
- Pad usage rose from 12% in 2012 to 45%+ in 2023
- GST (Goods and Services Tax) on sanitary pads dropped to 0%
- Films like Padman and Period. End of Sentence drove cultural change
- National and international programs began pouring in
Despite these shifts, many old assumptions persist and continue to shape funding decisions, business models, and program design.
So here are a few insights and opinions based on qualitative and quantitative data from 10 years in the field.
1. Everyone Talks About Unit Economics, Few Design for It
We started Saral because we saw this: 40–60% of pad costs came from intermediaries and logistics. Localizing production could reduce these costs.
But the equation wasn’t simple.
- Manual machines cost $5–10K: Low CapEx but high operating inefficiencies (gross margins <10%, 20–30k pads per month)
- Semi/auto machines cost $30–40K: Higher CapEx but better quality, gross margins (20–30%), and scalability (100–500k pads per month).
Unfortunately, donors leaned toward manual machines, as they could fund four units instead of one and reach more geographies on paper.
Reality: These low-CapEx businesses which had razor thin gross margins, often couldn’t withstand shocks. One breakdown, one slow month and they would run out of business.
2. Sales Is a Different Beast
India has 600,000+ small manufacturers. We know how to make things. But selling a taboo product in low-awareness, low-income rural markets is a whole different game.
Decentralized machine buyers had to:
- Sell unknown brands in hyper-local markets
- Deal with social stigma around menstruation
- Run door-to-door awareness campaigns
- Educate and build trust without marketing budgets
We provided:
- Standardized campaign materials
- Free training
- Sales templates
But sales materials were never the bottleneck. Money was.
Unlike big brands that run on negative net margins for over a year when they launch a new brand, these small scale entrepreneurs had to break even within a few months to survive.
3. Inventory: The Hidden Capital Sink
Most quality suppliers only sell in 1-ton lots, equivalent to 6–8 months of raw material for small units.
Entrepreneurs had 3 options:
- Lock working capital in bulk purchases
- Buy smaller lots from costly intermediaries
- Use poor-quality, unreliable suppliers
To fix this, we pooled orders for raw materials of sanitary pads. But this brought delays, operational friction, and zero profit on our side. Even after 6 years, our pooled raw material business never turned a profit, margins were too thin and variability too high. We had to absorb the losses as our entrepreneurs couldn’t.
4. Maintenance: Underrated, Until It Hurts
In manufacturing, downtime is money lost.
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Imagine this:
- You operate in a village in hilly mountainous regions
- Your machine breaks down
- You need a critical part
- That part takes 10 days, crosses 3 transport vendors, and halts your business
We started issuing a year’s worth of critical spares with every machine.
The rule: if a part costs less than 10 days of lost production, stock it.
We recommend that:
- Machine manufacturers and producers must plan maintenance together
- Pad producers should always have cash flow and raw material buffers to handle downtimes
Key Recommendations for Donors & Builders
If you fund, build, or design programs in the menstrual hygiene space, especially through decentralized production, here are some learnings we hope you’ll consider:
✅ 1. Budget Holistically, Not Just for CapEx
Business viability isn’t just about buying a machine. You need to account for:
- Equipment + working capital
- Staff salaries
- Spare parts
- Training
- Awareness and distribution
Any model with <20% gross margin is in the danger zone for a small-scale manufacturer. Leave room for error, experimentation, and real growth.
✅ 2. Branding Matters, So Does Differentiation
Even if you’re building a hyper-local brand, your product must answer:
- Why should someone choose this over a free/ subsidized government sanitary pad?
- Is it cheaper, more reliable, compostable, or better quality?
- Is your delivery or awareness model unique?
Small businesses don’t need fancy branding, but they do need clear product differentiation and consistent storytelling. And they need a year-long runway to build traction.
✅ 3. Think Longevity, Not Just Reach
Yes, $40K can fund 4 manual machines or 1 semi-automatic one. But ask yourself:
- Which one will survive 3–5 years?
- Which one creates real income for its operator?
Avoid the temptation of high deployment numbers. Support models that are sustainable, even if fewer in count.
✅ 4. Plan for Downtime, Not Just Installation
In decentralized setups, every day a machine isn’t working is a revenue loss. Budget for:
- Spare parts
- Local repair networks
- Remote support tools
Rule of thumb: if a spare part costs less than 10 days of lost production, stock it.
✅ 5. Fund the Ecosystem, Not Just the Equipment
Most small entrepreneurs can’t:
- Build a brand
- Stock months of inventory
- Run awareness campaigns
- Build sales channels
That’s not a failure. That’s a system design problem.
Ecosystem funders must think holistically:
- Can someone stock and buffer compostable materials?
- Can there be shared distribution or sales infrastructure?
- Who is building awareness across villages or states?
- Can you support intermediaries who reduce risks for last-mile players?
✅ The real ROI comes when you invest not just in units, but in enablers who amplify capacity for many.
Closing Thoughts
Decentralized manufacturing can work beautifully with the right capital, right expectations, and right support infrastructure.
It’s not about replacing central factories. It’s about co-creating last-mile access models that are resilient, efficient, and dignified.
If this resonates and if you’ve built, funded, or supported in this space, I’d love to hear your reflections too.
