What this guy is achieving is more than bringing down the price.
The job he is creating for these women is providing incalculable benefit to themselves, their families, their children and is adding more to the society (which operates on a completely different value system than your own) that can not be calculated in 20 pause less per pad.
Also, you mentioned the scale of economy, but didn't see that he achieved this price reduction without mass scale production which in itself is a big achievement.
Without going in much details, I'd say the capitalist approach does not always benefit the society. I know everybody here is a superstar techie working on the next big social success to allow people do more fluff, other people in other worlds may have different priorities.