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THE BABY CARE MARKET IN INDIA INDUSTRY SUMMARY Baby care products industry comprises of segments which address

the needs of babycare. Any product that promises to meet the demand for taking care of an infant, generally between 0-4 years of age, falls under this industry. Typical segments of this industry are skin-care, hair care, baby food, toiletries [diapers and its accessories and wipes], apparels & footwear, baby travel gear and medical kits for everyday use. India has emerged as a prospective market in the baby care segment. This has proliferated due to the changing consumer mindset, the growing population in the age group 0-4 yrs, rising income levels, better awareness and availability of good quality products. MARKET OVERVIEW The market can be divided into the following segments : Segment Baby Food Products Baby milk Baby cereals Baby snacks Skin care Massage oil Powder Soap Creams Lotions Body wash Toileteries & Diapers Diapers Wipes Hair Care Hair oil Shampoo Apparels Bibs & footwear Sweaters Rompers Clothes Travel Gear Strollers Frames Accessories

Current Scenario: While the developed nations have reached near stagnation in the growth of baby products industry, there is a huge potential in the coming decades in developing nations including the Indian market for this industry. Due to the gradual cultural shift and the changes in lifestyles, the demand for baby care products has increased in the past ten years.
Currently this industry is dominated by the skin-care and apparel & footwear

products which take away the largest market share. Baby food segment lags behind the most among other segments of this industry, followed closely by toiletries segment which comprises mainly of diapers and its accessories and wipes. The reasons for this lag are : The cultural barrier, which discourages pre-packaged foods for infants Emphasis on the importance of mothers milk and freshly prepared food for the babies. The packaged foods are mostly imported and are very expensive at the retail price. India has very few domestic players which cater to the baby food segment, which prohibits many potential buyers from buying ready-touse baby food.


Johnson n Johnson Liliput Himalaya

Sun Baby

Baby Care Brands


Fisher Price Chicco

Mamy Poko Pants

BABY DIAPERS A diaper (in North America) or nappy (in the United Kingdom, Ireland, Australia, New Zealand and many other Commonwealth countries) is an absorbent garment worn by individuals who are incapable of controlling their bladder or bowel movements, or are unable or unwilling to use a toilet. When diapers become soiled, they require changing; this process is often performed by a secondary person such as a parent or caregiver. Failure to change a diaper on a regular enough basis can result in diaper rash. Diapers are primarily worn by children who are not yet potty trained or suffer from bedwetting. However, they can also be used by adults who suffer from incontinence or in certain circumstances where access to a toilet is unavailable. These can include the elderly, those with a physical or mental disability, and people working in extreme conditions such as astronauts. It is not uncommon for people to wear diapers under dry suits. Diapers are usually worn out of necessity rather than choice, although there are exceptions; people such as infantilists and diaper fetishists wear diapers recreationally for comfort, emotional fulfilment, or sexual gratification. Terms such as "incontinence pads" can be used to refer to adult diapers. Types of Diapers i) Cloth Diapers: Made of : Natural fibers, manmade materials, or a combination of both. They are often made from industrial cotton which may be bleached white or left at the fibers natural color. Other materials include: i. Natural -wool, bamboo, and unbleached hemp. ii. Manmade- internal absorbent layer of microfiber toweling or an external waterproof layer of polyurethane laminate (PUL) may be used. Types of Modern cloth diapers : prefolds, flats, fitteds, pocket diapers, all in one diaper, all in two diapers. Cloth diapers are reusable. ii) Disposable Diapers:

Composition : Layered Construction which allows the transfer and distribution of urine to an absorbent core structure where it is locked in. Layers : o outer shell of breathable polyethylene film or a nonwoven and film composite which prevents wetness and soil transfer. o inner absorbent layer of a mixture of air-laid paper and superabsorbent polymers for wetness. o layer nearest the skin of nonwoven material with a distribution layer directly beneath which transfers wetness to the absorbent layer.

Non reusable.

DIAPER MARKET IN INDIA The baby diaper market is a Rs 630-crore market, growing at 5-10% per cent per annum. The various brands prevalent in this category are :

Huggies Fixies Pampers

Easy Fit

Diaper Brands


Mamy Poko Pants

Wipro Baby Soft

Market Share
3% 2% 7% Huggies Pampers Snuggies 32% 56% Wipro Others

It can be clearly noticed that the top three brands in the country are a) Huggies - Huggies is a brand of Kimberly Clark Lever Pvt. Ltd. which is a joint venture between Kimberly Clark Corporation, USA and Hindustan Lever Ltd., India. Kimberly Clark Lever Pvt. Ltd. has captured the maximum market share by constantly understanding the market requirements and adapting its products to fit into it. b) Pampers - Pampers baby diapers brand was launched in India by Procter and Gamble. Pampers baby diapers are focused towards providing value for money to the customers by providing high quality latest baby diapers at affordable prices. c) Snuggies - This is a brand of Godrej. Godrej acquired Snuggy from Shogun Industries towards the end of 2006. The diapers sold under this brand are imported from a China based manufacturer. REASONS FOR INDIA BEING AN EMERGENT MARKET FOR BABY DIAPERS

Increased spending on baby care

Rising Income
Increasing working women Increase in working age population

Greater Awareness
Educated population

Consumer Behaviour There has been a shift in consumer behaviour towards use of diapers for babies. Diapers when launched in India was priced at a premium which kept off the majority of the customers. When launched, the price for diapers for a pack of ten where any where between Rs 150 - 200 which was perceived to be pricey. Diapers also faced competition from the use of ordinary cloth at home which are reusable and inexpensive. Also, the use of cloth did not make the baby susceptible to rashes. With more and more women joining the workforce, the average income of families have been rising. Parents priority concern is their babys well being and with increased income are willing to provide their child with the best comfort they can. The convenience factor and quality standards are taking up the priority in deciding for the baby care products. Also, the changing lifestyles in India are fast changing the traditional mind sets and are overpowering the cultural barriers. Obstacles in growth Despite the growth in the diaper market, penetration remains at 25% in urban areas and 1% in rural areas. The causes are examined below : i. Price : Despite the changing psychographics of consumers, price continues to pose a constraint for the middle class.In the last two years , the marketers have tried to reduce the price of diapers to induce more usage. The prices have come down to Rs 10 per piece. But still the market has not grown to the expectation. The reason is pretty simple. A diaper at best can be used on a kid for around 3 hrs ( that too is risky) that calls for 4 diapers per day and 6 if also used at night. That will cost an amount ranging from 40-60 per day working out to Rs 1200 to 2000 per month on diapers alone. That is totally unimaginable expense for a middle class family. ii. Low value : Due to the use and throw nature , parents tend to use these only during travel. At home, parents make kids do without diapers as these require frequent changes. iii. Lack of awareness : In addition to price constraints, lack of awareness keeps the rural

populace highly aloof of this market. iv. Competition : Diapers are usually imported from other countries and branded in India.This product category also face competition from cheaper imports. Measures to improve consumption Excise duty on diapers was slashed to one per cent from 10 per cent during the 2011-12 Budget announced this February. Improvements in technology to reduce per unit cost .

HOW ARE DISPOSBLE DIAPERS MADE Disposable diapers are a relatively recent invention. In fact, until the early 1970s mothers had no real alternative to classic cloth diapers. History of Disposables : The earliest disposables used wood pulp fluff, cellulose wadding, fluff cellulose, or cotton fibers as the absorbent material. These materials did not absorb very much moisture for their weight, however. Consequently, diapers made from these materials were extremely bulky. More efficient absorbent polymers were developed to address this issue. Since the 1970s, disposable diaper technology has continued to evolve. Today's diapers are not only highly functional, they include advanced features such as special sizing and coloring for specific gender and age, color change indicators to show when the child is wet, and reattachable VelcroTM-type closures. These innovations have enabled disposables to capture a large share of the diaper market. In 1996, disposable diaper sales exceeded $4 billion in the United States alone. Proctor and Gamble and Kimberly Clark are the two largest brand name manufacturers, and their sales account for nearly 80% of the market. Features : A disposable diaper consists of an absorbent pad sandwiched between two sheets of nonwoven fabric. The pad is specially designed to absorb and retain body fluids, and the nonwoven fabric gives the diaper a comfortable shape and helps prevent leakage. These diapers are made by a multi-step process in which the absorbent pad is first vacuum-formed, then attached to a permeable top sheet and impermeable bottom sheet. The components are sealed together by application of heat or ultrasonic vibrations. Elastic fibers are attached to the sheets to gather the edges of the diaper into the proper shape so it fits snugly around a baby's legs and crotch. When properly fitted, the disposable diaper will retain body fluids which pass through the permeable top sheet and are absorbed into the pad.

Advantages of cotton cloth over diapers : i. Soft and comfortable. ii. Pose no danger because of being made of natural materials. iii. Reusable. Disadvantage of cloth nappy : i. Need to be laundered. ii. Not suitable for prolonged use due to leakiness. Advantages of diapers over ordinary cloth nappies : i. High absorbing capacity compared to ordinary cloth. ii. Convenient to use while travelling. iii. More leak proof. Disadvantages of diapers : i. Non reusable. ii. Expensive for 24 hour use. iii. Develops rashes in babies on prolonged usage. iv. Cause environmental hazards when disposed

Raw Materials The raw materials generally used for making diapers are i) Absorbent pad ii) Non woven Fabric iii) Miscellaneous items 1. Absorbent pad The single most important property of a diaper, cloth or disposable, is its ability to absorb and retain moisture. Cotton material used in cloth diapers is reasonably absorbent, but synthetic polymers far exceed the capacity of natural fibers. Today's stateof-the-art disposable diaper will absorb 15 times its weight in water. This phenomenal absorption capacity is due to the absorbent pad found in the core of the diaper. This pad is composed of two essential elements i. a hydrophilic or water-loving polymer and ii. a fibrous material such as wood pulp. Hydrophylic polymer : The polymer is made of fine particles of an acrylic acid derivative, such as sodium acrylate, potassium acrylate, or an alkyl acrylate. Microscopically these polymer molecules resemble long chains or ropes. Portions of these chemical ropes are designed to interact with water molecules. Parts of the polymer have the ability to chemically link with different polymer molecules in a process known as cross linking. When a large number of these polymeric chains are cross linked, they form a gel network that is not water soluble but that can absorb vast amounts of water. Polymers with this ability are referred to as hydrogels, superabsorbents, or hydrocolloids. Depending on the degree of cross linking, the strength of the gel network can be varied. This is an important property because gel strength is related to the tendency of the polymer to deform or flow under stress. If the strength is too high the polymer will not retain enough water. If it too low the polymer will deform too easily, and the outermost particles in the pad will absorb water too quickly, forming a gel that blocks water from reaching the inner pad particles. This problem, known as gel blocking, can be overcome by dispersing wood pulp

fibers throughout the polymer matrix. These wood fibers act as thousands of tiny straws which suck up water faster and disperse it through the matrix more efficiently to avoid gel blocking. Manufacturers have optimized the combinations of polymer and fibrous material to yield the most efficient absorbency possible. 2. Non-woven fabric The absorbent pad at the core of the diaper is held in place by nonwoven fabric sheets that form the body of the diaper. Difference between Nonwoven and Traditional fabrics Traditional fabrics : Made by weaving together fibers of silk, cotton, polyester, wool, etc. to create an interlocking network of fiber loops. Nonwovens : Made from plastic resins, such as nylon, polyester, polyethylene, or polypropylene, and are assembled by mechanically, chemically, or thermally interlocking the plastic fibers. There are two methods of assembling nonwovens for diapers : i. ii. The wet laid process The dry laid process eg. Meltblown method. In this method the plastic resin is melted and extruded, or forced, through tiny holes by air pressure. As the air-blown stream of fibers cools, the fibers condense onto a sheet. Heated rollers are then used to flatten the fibers and bond them together. Polypropylene is typically the material used for the permeable top sheet, while polyethylene is the resin of choice for the nonpermeable back sheet. 3. Other components These include ancillary components such as : elastic threads, strips of tape or other closures hot melt adhesives, inks used for printing decorations.


Formation of the absorbent pad

Nonwoven preparation

Assembly of the components

Baby Diaper

The process of manufacturing diapers is explained below STEP 1 : Formation of the absorbent pad

Fibrous material sprayed onto a perforated conveyor belt in a forming chamber. As the material is sprayed vacuum is applied from below so that fibres are pulled down to form a flat pad. Polymer injected onto the material through pressurized nozzels. Pad moves down the conveyor path and is evelled by a roller at the outlet of the forming chamber. Ejected through the outlet for subsequent operations.


Method 1: Polymer injected into the same feed stock supplying the fibres. Advantage: Absorbent polymer evenly dispersed throughout the entire length,width and thickness of the pad.

Method 2: Absorbent material applied onto the top surface of the pad after its formation.

Alternative method : Multiple spray dispensers are used to apply several layer of polymer and fiber forming a sandwich. Advantages: i. Absorbent polymer is in the center of the pad surrounded by the fibrous material. ii. Gel blockage is nt a problem as polmer is concentrated at the center of the pad. iii. No problem of particle loss as absorbent is surrounded by fibrous material. iv. Cost effective.

Problems: i. Absorbent material is concentrated on the top side hence not much absorbency throughout the pad. ii. Loss of polymer from the surface. Problems: i. Loss of absorbent through iii. Tends to cause gel the perforations on conveyor blocking as absorbent is on the outside of the pad. by the vacuum. iv.Trapping of moisture in ii. Expensive and messy. iii. Uneven absorption since the outer layer can cause discomfort to the wearer. absorbent is lost from one side and not the other.

STEP 2: Formation of the Non woven

Fibrous material sprayed onto a perforated conveyor belt in a forming chamber.

As the material is sprayed vacuum is applied from below so that fibres are pulled down to form a flat pad.
Polymer injected onto the material through pressurized nozzels. Pad moves down the conveyor path and is evelled by a roller at the outlet of the forming chamber. Ejected through the outlet for subsequent operations.
STEP 3: Assembly of the components

Absorption pad and backing sheet fed onto a conveyor belt.

Top sheet is fed onto the pad and is joined by gluning,heating or ultrasonic welding.

Long roll is cut into individual diapers.

Folded, packed and shipped.

Step 1: Formation of the absorbent pad The absorbent pad is formed on a movable conveyer belt that passes through a long "forming chamber." At various points in the chamber, pressurized nozzles spray either polymer particles or fibrous material onto the conveyor surface. The bottom of the conveyor is perforated, and as the pad material is sprayed onto the belt, a vacuum is applied from below so that the fibers are pulled down to form a flat pad. There are two methods for injecting absorbent polymers Method 1 : In this method the polymer is injected into the same feed stock that supplies the fibers. Advantage: The pad produced has absorbent polymer dispersed evenly throughout its entire length, width, and thickness. Problems : Loss of absorbent may occur because the fine particles are pulled through the perforations in the conveyor by the vacuum. It is expensive and messy. The pad absorbs unevenly since absorbent is lost from only one side and not the other. Method 2 : This method involves application of the absorbent material onto the top surface of the pad after it has been formed. Problems : The pad produced has absorbent material concentrated on its top side and does not have much absorbency throughout the pad. The pad may lose some of the polymer applied to its surface.

This approach tends to cause gel blocking, since all the absorbent is on the outside of the pad. The moisture gets trapped in this outer layer and does not have a chance to diffuse to the center. This blockage holds moisture against the skin and can lead to discomfort for the wearer.

Alternative : These problems are solved by controlling the mixture polymer and fibrous material. Multiple spray dispensers are used to apply several layers of polymer and fiber. As the fiber is drawn into the chamber and the bottom of the pad is formed, a portion of the polymer is added to the mix to form a layer of combined polymer and fiber. More pure fiber is pulled on top to give a sandwich effect.

After the pad has received a full dose of fiber and polymer, it proceeds down the conveyor path to a leveling roller near the outlet of the forming chamber. The roller makes the pad of a uniform thickness. The pad then moves by the conveyor through the outlet for subsequent operations to form the competed diaper.

Advantages of the method : i. ii. iii. iv. This formation creates a pad with the absorbent polymer confined to its center, surrounded by fibrous material. Gel blockage is not a problem because the polymer is concentrated at core of pad. It also solves the problem of particle loss since all the absorbent is surrounded by fibrous material. Finally, this process is more cost effective because it distributes the polymer just where it is needed.

Step 2: Preparation of the nonwoven This step does not necessarily occur in sequence after pad formation because the nonwoven fabrics are often made in a separate location. Sheets of nonwoven fabric are formed from plastic resin using the meltblown process as described above. These sheets are produced as a wide roll known as a "web," which is then cut to the appropriate width for use in diapers. There is a web for the top sheet and another for the bottom sheet. When the manufacturer is ready to initiate diaper production these large bolts of fabric are connected to special roller equipment that feeds fabric to the assembly line.

At some point in the process, stretched elastic bands are attached to the backing sheet with adhesive. After the diaper is assembled, these elastic bands contract and gather the diaper together to ensure a snug fit and limit leakage.

Step 3: Assembly of the components At this point in the process there are still three separate components, the absorbent pad, the top sheet, and the backing sheet. These three components are in long strips and must be joined together and cut into diaper-sized units. This is accomplished by Feeding the absorbent pad onto a conveyor with the polyethylene bottom sheet.

The polypropylene top sheet is then fed into place, and the compiled sheets are joined by gluing, heating, or ultrasonic welding. The assembled diaper may have other attachments, such as strips of tape or Velcro, which act as closures.

The long roll is then cut into individual diapers, folded, and packaged for shipping.

BY-PRODUCTS/WASTE Diaper production does not produce significant by-products; in fact the diaper industry uses the byproducts of other industries. The absorbent polymers used in diaper production are often left over from production lines of other chemical industries. The polymer particles are too small for other applications, but they are well suited for use in diapers. In diaper production, however, considerable amounts of both nonwoven material and polymer particles are wasted. To minimize this waste, the industry tries to optimize the number of diapers obtained from every square yard (meter) of material. Furthermore, every attempt is made to recover the excess fiber and polymer material used in the forming chamber. However, this is not always possible due to clogging of filters and other losses. QUALITY CONTROL Quality control relates to the product's absorbency. One key is to make sure the polymer/fiber ratio in the absorbent pad is correct. Too much variation will impact the diaper's ability to soak up moisture. Industry trial and error has shown that for optimal performance and cost, the fiber to particle ratio should be about 75:25 to 90:10. Even more critical than this ratio are the size and distribution of these particles. It has been established that particles with mass median particle size greater than or equal to about 400 microns work very well with the fibers to enhance the rate at which the fluid is transported away from the body. If the particles vary much outside this range, gel blocking may occur. There are several standard tests the industry uses to establish diaper absorbency. One is referred to as Demand Wettability or Gravimetric Absorbance. These tests evaluate what is are commonly referred to as Absorbance Under Load (AUL). AUL is defined as the amount of 0.9% saline solution absorbed by the polymers while being subjected to pressure equivalent to 21,000 dynes, or about 0.30 lb/sq in (0.021 kg/sq cm). This test

simulates the effect of a baby sitting on a wet diaper. If the diaper has an absorbency of at least 24 ml/g after one hour, the quality is considered acceptable. Other quality control factors besides absorbency are related to the diaper's fit and comfort. Particular attention must be paid to the melt characteristics of the nonwoven fabrics used to form the diaper's shell. If materials with different melting points are used, the material that melts the quickest may become too soft and stick to the assembly apparatus. When the fabric is pulled off it may be left with a rough surface that is uncomfortable to the user. Finally, the alignment of the components must be carefully checked or leakage may result.

Challenges for new entrants : i. Competetive pricing from existing brands. ii. Penetration into rural areas.

Opportunities : i. Introducing product in rural areas. ii. Make available diapers at a cheaper price. Threats :

i. Availability of substitutes at competitive prices. ii. Cultural barriers prevalent in society regarding use of diapers. iii.