SIVAKASI WEATHER
Sivakasi fireworks industry sends out SOS

24-04-2015
24th April 2015

- The Times of India

Sivakasi fireworks industry sends out SOS

SIVAKASI: There is less noise in the fireworks hub this year. At a time when Sivakasi should be crackling with preparations for Diwali, at least 100 fireworks units are up for sale. Work orders have come down and workers in many of the small units are jobless. While workers are worried about their daily wages, employers are struggling to save the Rs 2,000 crore industry. Of the 800 fireworks units, 150 units, mostly small factories, have turned sick and 40 have closed operations. Some 100 units are up for sale with owners looking for prospective buyers with not many in sight.

"Smaller units are caught in a cash crush because we run our units on advances we receive from our dealers in north India. None of the dealers have turned up so far. Banks are closely watching the scenario and are hesitant to provide any loans. How do we procure raw materials and pay the workers wages?" asked a small player in the town.

The situation appeared precarious, said former vice-president of Tamil Nadu Fireworks and Amorces Manufacturers Association (TANFAMA) A Mariappan. "When production season starts for the next Diwali, it is normal for five or six companies to be sold and bought. But, we have learnt that more than 100 units are up for sale now, which is alarming. The fireworks industry in Sivakasi is in serious trouble," he said.

Though many want to sell off their units, it is hard to find a buyer who would be ready to pick up a sick unit and fight the odds of a dwindling market and restrictions from Petroleum and Explosives Safety Organisation, said president of Indian Fireworks Manufacturers Association ( TIFMA) in Sivakasi T Kannan. "Under the circumstances, it is hard to buy a fireworks unit and run it on profit," he said.

The situation is no better for larger players either. Rajasingh Chelladurai of Jumbo Fireworks, one of the big companies in Sivakasi, said economy remained weak across the country. "Fireworks are always a luxury that can be skipped in the Diwali budget. Unless the economy revives for good, it is very difficult to save the industry. All players, both big and small, have loads of accumulated stock from last year which cannot be sold without demand," Chelladurai pointed out.

Seasoned players like Rajasingh, Mariappan and Kannan know this is just the beginning because the fireworks industry is intertwined with other industries in the town like printing, matches and pyro supplies. It is only a matter of time before the slowdown in demand affected every sector, bringing Sivakasi to a grinding halt, they said.

District secretary of Fireworks Workers Association M Mahalakshmi said the huge workforce of Sivakasi was in serious trouble. "Without adequate work, workers do not get even 70% of their earlier wages. Most of them borrow heavily with the hope of paying back when the production picks up," she said.

"Various factors have pushed the industry to ruins. We appealed to ministers hailing from the region and the state government to look into the situation. But in spite of repeated petitions, the ministers are yet to act. The entire state machinery seems to be in a kind of slumber," a frustrated Mahalakshmi said.


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