Adult Diaper Manufacturing Business in India: BIS IS:17015, SAP Technology, Market Demand and Investment Guide

Adult Diaper Manufacturing Business in India

The adult diaper segment is one of the fastest growing consumer healthcare product segments in India, owing to the increase in the aging population, awareness about incontinence, adoption of nursing/ post-surgical care in the hospital sector and formalization of home care for the elderly and nursing. The market value is estimated at Rs 1,500-2,000 crore and is growing at a healthier rate of 20-25 percent CAGR as compared to most medical consumable categories, with India importing a large proportion of its need even though it has the infrastructure, technology and expertise to manufacture medical-grade adult diapers, SAPs (superabsorbent polymer) and packaging. According to Research published in NCBI: Urinary Incontinence Prevalence in India, there is a massively under-served domestic market as it is estimated that 20-30 percent of the elderly population in India suffers from urinary incontinence. According to WHO Global Report on Ageing and Health, access to adult incontinence products is among the most important parameters of quality of life of the ageing population of middle-income countries.

Market Opportunity: Why This Business Cannot Be Ignored

Multinational brands such as Kimberly-Clark’s Depend and Tena by the Essity dominate the market of diapers for adults in India, with a few organised domestic producers. The majority of the Rs 2000 crore+ growth in the market is happening in institutional channels such as hospitals and home care, where quality is the main procurement criterion of choice, per the standards set by the Bureau of Indian Standards (BIS) under the IS:17015 (Adult Diaper Specification) standard.

One that is growing rapidly is hospital and home care institutional supply. The growth of national programme initiatives such as elder care and palliative care provided by NHM and the growing market of registered adult care facilities under the Ministry of Social Justice is generating huge institutional buyer markets for the quality domestic producers of certified adult incontinence products, thereby opening up government procurement channels as well as consumer retail outlets.

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Industry Analysis: Growth Drivers and Demand Outlook

The adult diaper market in India is currently Rs 1,500-2,000 crore with a growth rate of 20-25 per cent per year. According to the FICCI’s Consumer Healthcare Report, India’s adult incontinence market will swell to Rs 5,000 crore by 2030, as the ageing population of 140 million +60 years will grow at 3 per cent every year, and there is a growing awareness across the country about the management solutions available for incontinence. The PIB: India Census and Elderly Population Statistics indicates that the ageing population is growing at a compound annual rate of 3 percent and by 2050, the number of elderly people in India will be more than 300 million and one of the world’s largest ageing populations.

To get private label supply to the pharmacy chains (Apollo Pharmacy, MedPlus, Wellness Forever) is an effective way to enter the market, without burdening consumer brand building costs and with access to proven retail distribution channels on institutional rates. The PMEGP scheme of MSME Ministry offers up to a maximum of 25-35 percent capital subsidy for manufacturing a new manufacturing unit in the consumer healthcare product manufacturing sector, which brings down the net equity required for a new manufacturing unit by an adult diaper manufacturing entrepreneur. India’s consumer healthcare market is expanding at more than 15 percent per year and among the fastest-growing sub-categories are products for elder care and incontinence management, according to the IBEF: India Consumer Healthcare Market.

India Adult Diaper Market Overview

How to Start: Step-by-Step Guide for Entrepreneurs

Step 1: Business Setup and BIS IS:17015 Certification

Dedicate entity, get Udyam MSME registration, and factory licence and GST. Request the BIS IS:17015 (Adult Diaper) Certificate which is required for hospital / medical institution supply. The absorbency under pressure, acquisition time, rewet, pH and odour parameters are specified in IS:17015. No CDSCO Device Licence for incontinence management (wound care) diapers.

Step 2: Technology: SAP Core and Absorbent Layer Design

Adult diapers feature a superabsorbent polymer (SAP) core that absorbs urine 30 times its weight, surrounded by absorbent fluff pulp, and topped with a top sheet (nonwoven) and backed by a breathable PE or PP film. Absorbency capacity is dependent on SAP concentration (250 – 300 g/m2). Forging R&D partnership with domestic supplier of SAP (Nippon Shokubai India, SDP Global / imported specialty polymer distributors). The Wikipedia: Adult diaper encompasses international technology standards for adult incontinence products, such as SAP concentration, acquisition time and rewet performance.

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Step 3: Production Line: Diaper Converting Machine

An integrated diaper converting machine is utilized for the production of adult diapers, which combines the process of creating the fluff pulp-SAP core, attaching top sheet and backsheet, adding leg cuffs, applying elastic waist bands, applying adhesive fastening tapes, cutting and folding into individual pads into one process. The typical production rate of an adult diaper machine is 200-400 per minute. Investment: Rs. 1-3 crore for a simple converting machine, which can be purchased from Chinese or European suppliers.

Step 4: Product Range: Tape Style and Pull-Up Style

Tape-type adult diapers (adhesive tabs) are used by bedridden patients at a hospital or nursing home. Pull-up adult diapers (underwear style, stretch panels) are used by ambulatory incontinent adults in home care and retail pharmacy. Pull-ups are retail priced at Rs 40-80 per piece, growing faster as retail awareness is increasing, compared to tape-style which is priced at Rs 25-50 per piece.

Step 5: Sales: Hospital, Home Care, Pharmacy, and GeM

Reach the purchase managers of hospitals for institutional tape-style diaper purchases. Develop private label supply contracts for pharmacy chains with retail pull-up diapers. Incorporate home care agencies and elderly care facilities as expanding institutional avenues. Register in GeM for Government hospital, NHM Elder care programme, Defence health services procurement.

Project Investment Breakdown

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Financial Projections and Profitability

The potential annual revenue of an adult diaper unit with an output of 100,000/day at blended hospital and retail price is in the range of Rs 15-25 crore. Growing awareness on the need for elder care in urban India and adult incontinence products being the most frequently recommended by pharmacists as a purchasing trigger for new customers is driving the expansion of adult incontinence products in India’s consumer healthcare sector, as confirmed by FICCI’s Consumer Healthcare Sector Report.

Private label supply to the pharmacy chains at Rs 25-40 per diaper is a base revenue with high repeat purchase stability. The adult incontinence product market’s target of Rs 5,000 crore by 2030 is expected to be largely propelled by the adoption of the product in healthcare institutions and the growth of the modern retail pharmacy segment, which is more beneficial for domestic market quality manufacturers over expensive imported brands, says Invest India’s consumer healthcare market analysis. India’s elderly population is one of the world’s three largest and fastest-growing populations as per the UN World Population Prospects; which is the structural demographic basis for sustained long-term adult diaper market needs.

Government Schemes and Incentives for Medical Manufacturers

Entrepreneur Spotlight

Neeraj Saini | Faridabad, Haryana

A mechanical engineer with experience in manufacturing consumer goods, Neeraj Saini founded an adult diaper converting unit in Faridabad IMT with Rs 2.2 crore invested in a 250-ppm capacity converting machine from China. He acquired BIS IS:17015 certification and introduced both tape type hospital diapers and pull-up retail diapers as his brand “SeniCare”.

Neeraj managed to get the private label supply deals at Apollo Pharmacy (300 outlets, NCR) and the institutional hospital tender in Haryana within 18 months. The annual revenue is Rs 8.4 crore and the net margins are 21 per cent. He says that the key to his success was the NPCS DPR in which he had previously identified the appropriate Chinese converting machine supplier who could offer the most competitive price-quality-service package.

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How NPCS Supports Your Business Launch

Niir Project Consultancy Services (NPCS) has been preparing Detailed Project Reports (DPRs) on medical devices and hospital disposables industry for more than 45 years, having completed more than 8,000 reports. The NPCS DPR includes details on plant layout, machinery specifications along with supplier contacts, raw material sourcing, licensing pathway with CDSCO, financial projections and bank ready investment analysis for diaper and incontinence products manufacturing for adults.

A NPCS DPR guides entrepreneurs to apply for government schemes, export registration and quality certification roadmaps customized to their state and scale. To see project reports for the sector, visit niir.org and to explore case studies and investment analysis of the sector, browse Entrepreneur India magazine at entrepreneurindia.co.

Key Reference Links and Further Reading

Bureau of Indian Standards – IS:17015 Adult Diaper: https://www.bis.gov.in

MSME Ministry India – PMEGP: https://msme.gov.in

FICCI – Consumer Healthcare Report: https://ficci.in

Invest India – Consumer Healthcare Sector: https://www.investindia.gov.in

Government e-Marketplace (GeM): https://gem.gov.in

Frequently Asked Questions

SAP stands for “Soluble Absorbent Polymer” and is an essential material for the production of adult diapers.

SAP, which is usually cross-linked sodium polyacrylate, will absorb and hold 250-400 times its mass of liquid when under pressure. SAP is found in the absorbent core of adult diapers and accounts for 70-80% of the total liquid retention capacity at a concentration of 250-300 g/m2. The higher the SAP concentration the higher the absorbency and higher the cost of raw material per piece.

For the manufacture of adult diapers, BIS certification is required for the materials and their composition.

In India, manufacturing of adult incontinence diapers must meet the required standards as per BIS IS:17015 (Adult Diaper Specification). It defines the criteria for total absorbency capacity, acquisition time, rewet after saturation, pH of absorbed liquid, odour performance, and product dimensional consistency. For institutional hospital supply and government procurement, BIS certification is necessary.

What’s the difference between pull-up adult diapers and tape?

Tape-style diapers unfold completely flat and use adhesive tabs to hold in place — perfect for a patient in the hospital or nursing home who can’t stand to have a diaper changed. These pull-up style diapers are like underwear and will be pulled up and down as pants — intended for adults who have light to moderate incontinence and are able to walk around. Pull-up retail prices are Rs 10-20 higher per piece.

May I use the same machine to make baby diapers as I do adult diapers?

No, Baby diaper converting machines and adult diaper converting machines are not the same in terms of the dimensions of the products, elastic attachment pattern, and the configuration of core sizes. The raw material supply chain is however widely common for baby and adult diaper manufacturing for SAP, nonwoven and backsheet raw materials. The factory can then add a baby diaper line using a separate converting machine once it has become an expert in adult diaper manufacturing.

The India adult diaper market size is valued at USD 2.35 billion.

India’s adult diaper market is estimated at Rs 1500 crores to Rs 2000 crores per year and expected to grow at 20-25 percent CAGR. The institutional segment (hospitals, nursing homes, home care) currently makes up around 60 per cent of the market, while the consumer retail pharmacy segment grows quickly on a small base, due to increased awareness and purchasing power. The market is very undeveloped compared to the Japanese and the European markets, and the US market.

NPCS can assist in the planning of an adult diaper manufacturing plant by providing various services, including advice on product design, production, and marketing.

NPCS generates Detailed Project Reports for adult diaper and incontinence product manufacturers on the criteria for selection of converting machines, sourcing of raw materials (SAP), BIS IS:17015 certification roadmap, private labels for pharmacy chains, hospital institutional sales plan and complete financial projections. For details of the project report, visit niir.org.

Conclusion

India is witnessing one of the fastest expanding consumer health care manufacturing sectors, namely manufacturing of adult diapers which is driving a 140 million+ ageing population with increasing awareness of incontinence management. BIS IS:17015 certification offers institutional supply credential which is a value-added quality certification given to domestic manufacturers that allows them to get access to procurement channels of hospitals, nursing homes and government elder care programmes.

This mix of hospital institutional supply and pharmacy chain private label results in a diversified, expanding revenue stream and high customer retention. Order a Detailed Project Report from NPCS to plan out your converting machine selection, SAP sourcing, eligibility assessment for application of capital subsidy under PMEGP and go-to-market strategy for the institutional and retail channels at the same time.