Cracker of a battle: Vijay wants Sivakasi to take on China and become a global fireworks powerhouse. Here's what it'll take

Sivakasi is synonymous with pattaasu (Tamil for firecrackers). Firecrackers from this city in Virudhunagar district in Tamil Nadu add sparkle and cheer to festivities across India. Apart from being the premier pyrotechnics hub, Sivakasi is curiously called “Kutty Japan” or Mini Japan, a moniker India’s first prime minister Jawaharlal Nehru reportedly coined for the enterprise and enthusiasm it demonstrated in economic growth in the 1960s.

This zest for entrepreneurship is exactly what the new Tamil Nadu government, under Chief Minister C Joseph Vijay, is banking on as it seeks to transform Sivakasi into a global hub for fireworks, capable of taking on even China, which rules the world market.

Tamil Nadu Industries Minister S Keerthana, who is also Sivakasi MLA, told ET: “For too long, this remarkable cluster has been allowed to operate below its potential. Our government intends to change that.” The transformation will be based on innovation, safety and sustainability. “Our vision is a town known not only as India’s fireworks capital but as a global benchmark for how this industry can work safely, cleanly and fairly. We invite the world’s buyers, partners and investors to be part of it.”


Sivakasi manufactures nearly 90% of India’s fireworks. There are over 1,200 factories and the industry is estimated to be valued at around Rs 6,000 crore. But China supplies close to 90% of the world’s pyrotechnics. And just one city—Liuyang—accounts for about 70% of its fireworks exports.

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Before Sivakasi can attempt to scale the Great Wall, manufacturers say they must overcome a maze of regulatory, logistical and safety challenges. Their global ambitions hinge on policy reforms, easier exports and safer working conditions.

CHEMICAL BANS

That Sivakasi is the Liuyang of India is clear. P Ganesan, president of the Tamil Nadu Fireworks and Amorces Manufacturers Association and director of the Vinayaga Sony Fireworks Group, says that of the 1,220 factories in Sivakasi , around 400 have licences issued by the district magistrate, which means they can manufacture and store only 15 kg of fireworks at a time. “The remaining units function under the supervision of the Petroleum and Explosives Safety Organisation (PESO),” he says. Some of these big factories can produce up to 500 kg of explosives and others can go even beyond that.

Ganesan says around 300,000 workers are directly employed in the fireworks factories, while another 500,000 are employed in allied industries and support services across Virudhunagar. “Women form nearly 55% of the workforce, making the sector one of the largest rural employment generators in southern Tamil Nadu,” he says.

One of the biggest pain points that have come through in ET’s conversations with firecracker manufacturers in Sivakasi is the Supreme Court’s interim ban on barium nitrate, a key chemical used in the manufacturing of firecrackers. It was banned to curb air and noise pollution

“Restrictions on certain chemicals and products have significantly impacted the industry’s production capabilities,” says Ganesan. “Barium nitrate, an oxidiser, constituted nearly 60% of the products manufactured here. Joined crackers, which accounted for 20% of our production, also face restrictions.”

A joined cracker is a garland of firecrackers linked by a single continuous fuse. Designed to detonate in rapid succession, it is also banned by SC. “Nearly 80% of our product portfolio is therefore impacted. Any positive decision by SC or the Centre will provide a major relief to the industry,” says Ganesan.

He says permit for another chemical, potassium perchlorate, which is necessary for fireworks in colder countries, is granted only to a few large-scale units with specialised safety infrastructure. Industry representatives have conveyed their concerns on chemicals and exports to the Department for Promotion of Industry and Internal Trade and PESO.

SAFETY PROBLEM

Export ambitions are overshadowed by another challenge: worker safety. While the potential for expansion is undeniable, over the years, the industry has been plagued by issues like illegal firecracker units, child labour, inhuman working conditions and tragic accidents that have killed workers whose subsistence depends almost entirely on the hazardous occupation.

Most recently, on April 19, a devastating explosion took place at a firecrackermanufacturing unit at Kattanarpatti village near Sivakasi that claimed 25 lives. The explosion was the worst since the 2012 Mudalipatti incident in which 40 workers died.

On April 13, one worker in a cracker unit was killed in an explosion at Thayalpatti in the same region. All those who were killed in the explosions belonged to poor families, with women constituting a majority of the victims. Earlier, on March 27, one worker was killed and two women injured in a fire accident reported at Natesh Fireworks at Viswanatham near Sivakasi.

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The accidents paint a worrying picture about the lack of safe working conditions in this industry which relies on the use of hazardous chemicals. But in Virudhunagar district, where agriculture is not viable owing to topography, the fireworks sector ends up being the only practical choice for thousands who are willing to gamble their safety to put food on the table for their families.

“Accidents are becoming frequent and hundreds die every year. About 644 people have lost their lives over the past decade,” says A Vijayakumar, social activist and director of Human Resource Foundation, a Sivakasibased non-profit. “If the firecracker industry were to collapse, transitioning workers to a different industry would not be easy. We need to protect the firecracker industry while ensuring that safety measures are strictly followed.”

He says the key is to crack down on illegal units. Even if such activity has decreased, he highlights the need for stringent checks. This too, he adds, is a challenge as a single official is expected to oversee 450 factories, when inspecting even one or two a day is a task.

“When a worker dies, they just stuff the body into a sack,” he alleges. “The victim isn’t even treated with dignity. There are companies that run as many as 27 entities and don’t have a single doctor on call, no ambulance on site, or adequate safety measures. Illegal practices are going on. Recently, 26 people died and only Rs 1 lakh was given to them. Nothing else was done.”

In this environment, he says, it is important for Sivakasi’s firecracker enterprises to step up and draw from the culture that exists in industrial hubs like Coimbatore and Tiruppur where companies provide a lot of services and benefits to workers.

As he poignantly says, “There is no Sivakasi without the firecracker industry,” and that’s all the more reason for the Tamil Nadu government to see what it can do to enable this segment to move from being “Kutty Japan” to a challenger for China.

ISSUES GALORE

Export challenges are a major concern. The industry, which once exported substantial quantities of fireworks to several countries, has witnessed a sharp decline in overseas shipments over the past two decades.

“About 18 years ago, India’s fireworks exports were significant. Today, it is increasingly difficult to get shipping containers and cargo space. Small consignments from India often struggle to find transportation while global shipping networks are dominated by Chinese exports,” says Ganesan.

Sivakasi has another request: reclassify firecrackers as a “white category” industry. Manufacturing and storage facilities of firecrackers are categorised under the “red category” by the Tamil Nadu Pollution Control Board (TNPCB). Industrial sectors in this category are required to obtain consent to establish (CTE) and consent to operate (CTO) from the concer ned state PCB. Industry leaders argue that green crackers manufactured in Sivakasi comply with environmental standards and should not be classified alongside highly polluting industries.

Representations have also been made to alter the categorisation of fireworks in the Explosives Act. “The industry has proposed that fireworks be recognised as “Low-Risk Pyrotechnic Devices’ instead of ‘Low-Hazard Explosives’. Fireworks are consumer products used for celebrations, cultural events and entertainment by millions of people. The classification should reflect their actual end use and risk profile,” Ganesan says.

He says representations on these issues have been submitted to the Centre, and discussions with various ministries and regulatory authorities are on.

THE BIG BANG

Sivakasi came into the spotlight earlier this month when minister Keerthana proposed a policy reform to formalise the sector, address worker safety and tackle structural gaps.

“Health and safety, here and in every country our products reach, must always come first,” Keerthana told ET. “We will not take any shortcuts. Our answer is innovation rather than compromise. Our government plans to invest seriously in research.”

She says progress will not just be measured by export figures: “To upgrade the industry while leaving women at the lowest rung would be no progress at all.” So success will be measured by a different parameter as well: “It will be when the light Sivakasi sends across the world finally returns as dignity, safety and fair wages to the women whose hands have been making it all along. That is the promise, and our government intends to keep it,” says Keerthana.

The future of Sivakasi’s fireworks industry and its workers will ultimately depend on whether the government can walk the talk.