Noida-based startup to launch own brand of sanitary napkins
Soothe Healthcare manufactures innovative and affordable healthcare products for the Indian market
October 29, 2013 / 16:12 IST
Shonali Advani
Noida-based Soothe Healthcare is slated to launch its first healthcare product in December 2013 which is its own brand of sanitary napkins positioned as a mid-level product catering to the bulk of India's population and at an affordable price range.Founded by Sahil Dharia in September 2012, the healthcare startup has developed a chemical free product that is slightly thicker than other sanitary napkins available in the market today and will be priced at Rs 20-25 for a pack of six-eight pieces. The company was launched with an initial investment of Rs 7.5 crore ($1.5 million), a mix of both debt and equity from Dharia; Dr Wasi U Khan, Medical Superintendent of Metro Heart Hospital, New Delhi; Dr Srinivasa Rao, Founder and Managing Director of Indian Institute of Biotechnology; and John Cioffi, of UBS Investment Bank. Cioffi has invested through India Vest LLC, his investment entity in India and Rao has invested through North East Biotech, his research laboratory in the US, while Dharia and Khan have invested in personal capacity. The company has also secured a bank loan from Bank of Baroda. All four shareholders hold a 25 percent stake in Soothe.Speaking on the distribution and sales strategy, Dharia, Founder and Managing Director, Soothe Healthcare said, "We are starting with Maharashtra (Pune and surrounding areas) as our pilot market because of the large number of BPOs, students and working class population." The startup will then target Kerala and Tamil Nadu in south India as next markets to sell its napkins. "Kerala has a high level of literacy and women in Tamil Nadu have a better social status as compared to women in some other regions," Dharia added. Soothe's manufacturing plant has been set up in Greater Noida and has a capacity to produce 675 napkins a minute. "Soothe Healthcare has created a new product segment per se -- in simple terms, it's a middle of the line category -- the large lower middle class and working class population where there isn't a noteworthy usage of sanitary napkins. This target group dislikes ultra-thin napkins. They are looking for something robust, comfortable and affordable. So, you can say we are making a 'thin' napkin with good safety, protection and quality features," Rao commented on the product innovation.Apart from retail stores and modern trade outlets, Soothe Healthcare plans to sell its sanitary napkins through a network of home-based entrepreneurs or the direct selling channel which includes Non–Governmental Organizations. "There will be no sign-up fee for home-based distributors. They can buy as much stock from us and sell," Dharia said."In order to reach millions of women and also spread awareness of women's hygiene, seeking help of NGOs and women groups is the right step. Use of innovative channels is the key to reach the population we want to serve profitably. Sahil has been planning and building the network and is expecting slow, organic growth. Working with the Government provides stability the business needs to get going until the retail launch of the product brings us to critical mass. We think this is the right strategy and are likely to replicate this for our future product portfolio. Future products will use the same distribution and sales channels we're developing now, so the investment in creating awareness will pay off then," Rao stated.Soothe has a technical tie-up with IIBT who are their outsourced research providers. Speaking on their role Rao said, "As a scientist I discuss all project details from a technical point of view. Further, I help in integrating these products in to the mainstream business of the company and channels they need to be present in. I also look for new and needed technologies for the company, keeping in mind the market and technology development at our in-house lab or elsewhere. Conversely, Soothe Healthcare provides us (R&D) inputs on what's possible and thus feeds into future product development."Soothe plans to introduce other products to its healthcare kitty after rolling out the sanitary napkins. Next in line are portable disease focused, diagnostic kits. The startup has tied up with elite laboratories to buy a patent for these technologies so that they can make business scalable and sell products affordable to the masses.
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