On sanitary napkins and innovation…

OR how the politics of subsidies kills the spirit of entrepreneurship…

From NextBillion, comes this story by Rishabh Kaul of an extra-ordinary innovation that is being threatened by the politics of subsidies.

…Last month, the Indian Newspapers were all ablaze with stories of Indian Government rolling out a massive national scheme under which they will provide the women in rural areas with sanitary napkins. While the exact details are unclear, women below the poverty line will be provided with the napkins free of charge where as the rest of the rural women will be charged Re 1 (.02 USD).

This is clearly a great step towards the end goal.  However, there’s a 48 year old Coimbatore resident, A. Muruganatham, who isn’t smiling.

A. Muruganatham and his invention, a machine that can churn out 120 sanitary napkins an hour, has been creating a lot of waves in the developmental sector.  A high school drop out, Muruganatham created his machine after realizing that there was an immense need for low cost sanitary napkin at the base of the pyramid. According to him, it costs just about 1 rupee (0.02 USD) to produce these napkins and the machine itself costs Rs 66000 (approx USD 1500).

India’s National Innovation Foundation came to Muruganatham’s aid and helped him scale his idea by inviting more and more SHGs to buy his machine as well as spreading the word. He has also obtained a patent for his invention, something which he is really proud of.

Muruganatham

A. Muruganatham’s invention; Image courtesy: NIF

Sadly, Muruganathan innovation is now at risk of being derailed by a massive government sponsored subsidy programme that is unlikely to boost such home-grown innovation.

Muruganathan spent close to 4 years researching sanitary napkins and has worked on the nitty gritty details to make his product adhere to the world standards.

He has sold over a hundred of his machines to women entrepreneurs all over India. Further more he emphasizes that using his machine, the napkins can be customized to the size of heavier women as well, a service that the major corporations don’t offer since they deal in bulk quantities. State Governments of Maharashtra, Uttar Pradesh have also struk a deal with him. He’s also started getting offers from Ethiopia, Sri Lanka, and Kenya.  The US-based Massachussets Institute of Technology (MIT) has placed orders for his machine, which they plan to use in Bangladesh.

Assuming the napkins are sold at Rs. 1, the project will cost the government a minimum of Rs. 2000 crore (USD $400M) and cater to 200 million rural women. Muruganatham argues that 100,000 units of his machine can be bought for less than half the cost (approx USD $140M) and as a result provide employment to over 1 million women. He further adds that if the government would sign an undertaking saying that they would buy the napkins churned out by his machine, the banks wouldn’t hesitate to give loans to SHGs to buy his machines. This way the government wouldn’t incur any capital costs.

Furthermore, MFI linkages could also be used to market this product and deliver it at doorsteps. This would effectively reduce the number of supply chains, decrease middle men and bring the overall costs further down.

…”What really ticked me off was when I heard that the Government was providing these napkins at a highly subsidized rate. This would mean that it would buy those napkins at a higher cost from elsewhere. What is the need of that, when my technology provides with a similar product at a cheaper price and at the same time generates a lot of rural employment,” says Muruganatham.

Unfortunately no one appears to be listening…and so an innovation that has the potential to transform the lives of millions of poor women – and provide employment to hundreds  more, will languish in a small workshop/factory somewhere while crores of rupees are pumped in the next government subsidy scheme.

If anyone has any links/contacts in the Ministry of Women and Child Development at the centre, please pass this email on to them…and please try and spread awareness about this issue amongst mainstream media and native language journals/ newspapers. Thank you.

Related Post:  “A plea for sanitation” – excerpts

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Please note I am travelling until the middle of May and there may be some delay in moderation and in responding to your comments. Thank you for your patience and support, as always. Jai Hind, Jai Bharat!

raveen Swami’s Not So Fabulous Fables

By Jamia Teachers’ Solidarity Association

25 April, 2010
Teacherssolidarity.org

If there is one infallible indicator of what the top Indian Intelligence agencies are thinking or cooking up, it is this: Praveen Swami’s articles. Each time the security establishment wishes to push a certain angle to this bomb blast or that, Swami’s articles appear magically, faithfully reflecting the Intelligence reports. After the Batla House ‘encounter’, he launched a tirade against all those who were questioning the police account of the shootout labeling them all ‘Alices in wonderland’. He went so far as to identify ‘precisely’ how Inspector Sharma was shot by claiming that “abdomen wound was inflicted with [Atif] Amin’s weapon and the shoulder hit, by Mohammad Sajid”.

And no sir, Swami’s conclusion was not based on post mortem reports of the killed, fire arm examination report or ballistic report but on this innocent fact: “the investigators believe that…” He certainly brings in a whole new meaning to ‘investigative journalism’. Swami however felt no need to pen an article when the postmortem reports of Atif and Sajid revealed that they had been shot from close range and that neither of them sustained gunshot wounds in the frontal region of the body—an impossibility in the case of a genuine encounter. Was it because the police and the Home Ministry chose to remain quite after the revelations—hoping that the storm would quietly blow over.?

Flip Flops on German Bakery Blasts

And meanwhile there was the German Bakery blast in Pune. Writing less than a week after the blasts, Swami hinted at the possible involvement of the Hindutva groups, namely Abhinav Bharat (“Hindutva Terror Probe Haunts Pune Investigation”, 19th February 2010). Indeed, this was mood in the ATS (though this was no deterrent to the large scale illegal detention and brutal interrogation often at private premises, of scores of Muslim youth in Pune.) Even the following week, the Home Department officials were not ruling out the possibility of the involvement of the Right wing Hindutva groups. But that was February. By March, political impatience at the probe taking such a turn was palpable. Responding to a riled Shiv Sena in the legislative assembly, the Maharashtra Home Minister, R.R. Patil thundered: “I will inquire if Raghuvanshi really indicated to the media about involvement of Hindu organisations in the Pune blast and if he did, action will be taken (against him).” As if on cue, two days later, Rakesh Maria was installed as the new ATS chief. This was of course only after a few months when Vinita Kamte, widow of the slain ATS officer Ashok Kamte, made serious allegations casting aspersions on Maria’s role in responding to the then ATS chief Hemant Karkare’s call for reinforcements during 26/11.

CCTV Footage:

Since its start, the probe had little to go on by way of leads except for the CCTV footage. While the Pune police commissioned experts to draw sketches of the suspects based on this footage, ATS dismissed this exercise as “anything but useful”, as their source, the CCTV footage, was itself grainy. (Siasat, April 12). Where does Swami stand on this? He wrote in his 19th February piece: “All that investigators have by way of suspects are three men recorded holding brief meetings before the blast by a poor-quality closed-circuit television camera. From the videotape, it is unclear if the men had anything to do with the attack.”

Exactly a month later, Swami conveniently develops an amnesia about Abhinav Bharat and even about the poor quality of CCTV footage. What was earlier ‘unclear” and hazy has in one month segued into solid shape: in the form of top Indian Mujahideen (IM) operative Mohammad Zarar Siddi Bawa ie., Yasin Bhatkal. Suddenly imparted with enlightenment, Swami writes dramatically of how a closed circuit television camera … “recorded evidence that Bawa had returned to India—just minutes before an improvised explosive device ripped through the popular restaurant killing seventeen people and injuring at least sixty.” The poor quality (by Swami’s own admission) and useless (by the ATS’s admission) visual evidence has morphed into precious footage of Bhatkal, “the fair, slight young man with a wispy beard” … “dressed in a loose-fitting blue shirt, a rucksack slung over his back.”

Clearly, Swami’s changing perceptions about the CCTV footage is in accord with the shifting attitude of the ATS itself. The ATS began by keeping the option of probing Abhinav Bharat open; developed cold feet, preferred to lapse into the usual Lashkar-IM litany, ‘rediscovered’ hitherto worthless footage and resurrected the IM. In an unequivocal reference to the manner in which innocent Muslim youths were arrested earlier by the ATS in its pre-Karkare days, a senior officer of the Pune Police admitted that “There have been some arrests in the Pune blast incident just as in the case of the 2006 Malegaon explosions. But we would never know whether those arrested were actually the men who triggered the blasts.” (Siasat, April 12, 2010). Rumours that the probe might be handed over the National Investigative Agency must have also pressured the Maharashtra ATS to show ‘results’—and viola, within two weeks of taking over, Maria submitted a preliminary report to the state government identifying the hand of Bhatkal and IM in the blasts. This was of course promptly and proudly relayed by R.R. Patil to the legislative assembly (surely to the relief also of the Shiv Sena legislators). Is it a coincidence that the Pune Police Commissioner has been transferred, ostensibly for the rising crime graph a couple of days ago? It seems improbable that the running battle between the Pune police and the ATS—whose current chief Maria had thrown a tantrum following Vinita Kamte’s accusation, demanding the support of the state Home Ministry—had no role to play in this.

The Bangalore Blasts:

When two crude bombs went off outside the M. Chinnaswamy Stadium ahead of the match between Mumbai Indians and Royal Challengers Bangalore on 17th April, the Karnataka Home Minister V.S. Acharya announced that the state Police were investigating the alleged involvement of the cricket betting lobby. He forcefully denied any link with the earlier blasts in the city in 2008.

But Yasin Bhatkal seems to have preoccupied Swami’s mind on 19th April for he evokes him again in connection with the stadium blasts (“Stadium Blasts herald new IM offensive”). Citing the ever cooperative ‘investigators, he says that the ‘similarity in design’ and the manner in which some bombs failed to explode are a sure indicator of the IM hand. Beyond this, he has nothing to link Bangalore bombs to Bhatkal. But good stories can always compensate for lack of facts. His piece, “To Bangalore with Hate” on 21st April (which has charming subtitles such as Jihad at ginger Plantation”), is no less crude then the two bombs at the stadium. Swami here details the biographies of SIMI activists in South India, making the link, ever so cleverly, between SIMI—and yes, IM—and the stadium blasts, without providing any evidence of their actual linkage. Life stories of these men are proof enough, he assumes.

It is quite clear that Mr. Swami has provided a (sometimes entertaining) dramatized version of the charge sheets files by the various police departments across the country. While it may make for a good script, we do hope that Mr. Swami understand what charge sheets are: a list of charges or allegations, which the police has still the burden to prove in a court of law–not irrefutable or established truth. Perhaps, Mr Swami fancies himself a literary genius who believes in narratives acquiring their own lives. In which case, he has manufactured a large corpus of mediocre short stories.

B Shantanu

Political Activist, Blogger, Advisor to start-ups, Seed investor. One time VC and ex-Diplomat. Failed mushroom farmer; ex Radio Jockey. Currently involved in Reclaiming India - One Step at a Time.

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9 Responses

  1. K. Harapriya says:

    This is what happens when the Government of India gets involved in anything (just look at what happened to IPL). It is about time the government gets out of the people’s business. The government’s job is not to provide people with consumer goods and services like bread, tourist hotels, air transportation etc. It is to provide infrastructure, and defense and facilitate free trade by mainly reducing the idiotic bureaucratic red tape that hounds every Indian’s independent endeavour.

  2. Rakesh T says:

    Yes a definitely good idea, we should try to inform the Ministry of Women and Child Development about this.
    Good work A. Muruganatham.

  3. Ranga says:

    Superb innovation by Muruganatham,reminds me of G.D. Naidu. These innovations are never supported, by our Govt., simply because the elite crowd, who are policy makers, do not have any grasp of the actual potential of talents in India. Introducing a scheme the ruling party can go around highlighting their achievement. Maybe the brands which sell sanitary napkin, would have promoted this idea, to ensure their sales increases manifold & anyway Govt. doling out something does not require quality, which transalate to higher profits. If Govt. wants to reduce subsidy, then why conjure up such schemes. Imagine employment for 1 million & more than anything Rural employment. Empower indeginous technology & stop this nonsense of subsidy. When are these politicians going to realise that subsidy is the malaise which has put the tax paying citizen to more hardship. Vande Mataram

  4. Dirt Digger says:

    While I laud Muruganatham’s efforts, I’m not convinced at the Re.1 price. There is a larger supply demand economics which need to be analyzed. While he might have this number for a single sample, how can he guarantee this for large quantities?

  5. Sid says:

    Well, Murugathanam should not loose heart. What scheme of our government has reached to the greater portion of aam-admi so far? Schemes like these is one more smart way to transfer public funds into private hands. I am sure the cost of each of these napkins would be equivalent to one lunch at a upscale restaurant. Just like the ancient MPLADS (the loot program Mr. Rao started to stabilize the government) and recent NREGA (loot 2.0 by the very honest and gentleman scholar), this would make some bulky pockets bulkier and our debt-pile larger.
    Instead of making rounds with the government officials who would not give him tender without a considerable kickback, he should consider making napkins in small scale and start selling them. Nature will always weed out the inefficient and reward the brave.

  6. Sid says:

    @Dirt,
    If he can stream line his process and has enough backlog of initial orders (small they may be) to justify a considerable inventory, he may end up slashing the cost to less than Re. 1/-

  7. Dirt Digger says:

    Sid,
    I agree with you that a streamlined process can cut costs. But we are not talking about plastic bags in supermarkets or paper towels.
    The word in focus here is ‘sanitary’ and not just a napkin (sorry if I’m being blunt here).
    The Govt is run by greedy monkeys here and probably needed someone like Anbumani Ramadoss for some leadership and initiative.

  8. B Shantanu says:

    DD: I think you misunderstood…The Rs 1 is the cost of the subsidised napkin that will be provided by the government.

  9. Prashant Serai says:

    even i misunderstood it the same way.. the previous statement creates the context about muruganathan’s machine.. u may change something