You're looking at one aspect of the problem, from the supply side. We've had industrial scale manufacturing of sanitary napkins for 100 years.
Procter and Gamble can already produce these things for a fraction of the cost. But building and maintaining a distribution network, marketing the product and making a healthy profit drives costs up.
This solution turns that problem on its head. Disperse the manufacturing locally, and let traditional/local social networks get the napkins distributed. In a country as large and complex as India, this is probably easier than finding 5,000 marketing campaigns to try to reach many small pockets of demand regarding a taboo subject.