§1What this business is

Wood pulp sheets are crushed into fluff, formed into pads between tissue layers, wrapped in non-woven fabric and waterproof PE film, glued with hot melt, sealed, embossed, cut into single diapers and packed. The report's machine runs up to 160 standard diapers a minute. Buyers are chemists, baby stores, supermarkets and kirana shops.

Capacity: Machine speed up to 160 pieces a minute (standard 360 × 105 mm) or 150 a minute (newborn size); the plan runs at 30% capacity in year 1 rising to 50% in year 5.

§2Is it right for you?

Who it is for

Someone with FMCG distribution experience who can build a regional brand or supply private labels.

Who it is not for

Someone without a plan to sell against big brands.

Advantages

  • Daily-use product with repeat purchase
  • Line machine gives high output with few workers
  • Machines are available on turnkey basis with operator training, says the report
  • Can later add sanitary napkins or adult diapers

Drawbacks

  • Large brands dominate shelves and advertising
  • Raw materials (pulp, SAP, non-woven) are often imported and price-sensitive
  • Quality failures (leaks, rashes) quickly hurt a new brand
  • Thin net margin in early years

Skills you need

  • Running and maintaining the diaper line
  • Quality testing of absorbency and leakage
  • FMCG distribution and retailer margins
  • Buying pulp and non-woven at good prices

Why difficulty 4/5: Manufacturing is machine-led, but selling against national brands is very hard.

§3Market

Who buys

  • Parents of babies
  • Chemists and baby-care stores
  • Supermarkets and kirana shops
  • Hospitals and maternity homes

How it sells

  • Distributors and wholesalers
  • Retail packs in plastic or paper bags
  • Private-label supply

Good to know

  • The report traces how disposable diapers moved from early commercial use (1930s–50s) to rapid adoption (1960s–80s) and constant improvement since the 1990s.
  • It says high-speed diaper machines are custom-built and their price depends on speed, features, quality and reliability.

§4Raw material & machinery

ItemQtyCost
Diaper line: pulp feeding frame, pulp grinder (fluff mill) with reject-fibre collector, pad forming and wrapping system, hot-melt adhesive system, pad conveyor, drive system, counter-stacker1 line—
Packing machine (pedal-operated or continuous heat sealer; carton packing optional)——
Other assets: testing devices, spares, generator, safety equipment, computer and printer—₹1.00 lakh (other misc. assets)
Total plant and machinery (no item-wise prices printed)—₹13.50 lakh

From: PMEGP sample project report — Baby Diaper (prepared by Udyami/Samadhan)

  • Wood pulp (cellulose) sheetscrushed into fluff for the absorbent pad
  • Sodium polyacrylate (super-absorbent polymer, SAP)improves retention and allows a thinner diaper
  • Hydrophilic and hydrophobic non-woven fabrictop sheet and leg cuffs
  • Polyethylene or cloth-like back-sheet filmstops leaks
  • Tissue, hot-melt adhesive, elastics, side and frontal tapesassembly materials

From: PMEGP sample project report — Baby Diaper (prepared by Udyami/Samadhan)

§5Licences & registration

  1. MSME Udyam registration (named in the report)
  2. GST registration (named in the report)
  3. Other state licences depend on area and machinery, says the report — check with your district industries centre
  4. BIS standard for baby diapers (confirm with BIS)
  5. Trademark for your brand

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report was prepared for it), CGTMSE for a collateral-free loan, MUDRA up to ₹20 L.

§7Money

How the investment is worked out: Plant and machinery ₹13.50 L + furniture ₹0.50 L + other assets ₹1.00 L + working capital ₹5.56 L = ₹20.56 L; land and building rented (₹30,000–40,000 a month).

Working capital: Working capital ₹5.56 L (working capital loan ₹5.00 L).

Year not printed on the report — check current machinery and raw-material prices.

How to prepare a loan file

§8Export potential

The project report prints no HS code; look up the 8-digit ITC(HS) line on the DGFT website or with a customs broker before exporting.

§9Risks — where people fail

  • Price war with large brands
  • Imported raw material price and supply
  • Product complaints from skin irritation
  • Machine breakdowns stopping the whole line

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working baby diaper manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (MSME Udyam registration (named in the report), GST registration (named in the report)), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Baby Diaper Manufacturing?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Baby Diaper (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.