Goi Striving To Bolster The Firecracker Industry

The firecracker industry, which is largely an SME-dominated industry

, is gradually gaining prominence at the home turf. The firecracker units in Sivakasi in Tamil Nadu (TN) account for about 95% of the total firecracker output in India. However, due to certain constraints the industry is unable to gain traction in the global market. Therefore, the state government has undertaken the initiative to incorporate certain measures to uplift the small and mid-sized players in the firecracker industry and make them globally competitive.

The Government of India (GoI) has decided to conduct a detailed study on the firecracker industry in China and is exploring various ways to acquire funds for the project. The study would help the SMEs in the Indian firecracker industry to analyse and undertake various strategies to boost manufacturing of firecrackers and subsequently make their presence felt in the global market, says Ritesh Desai, manager of Spark Private Limited, a small-sized firecracker manufacturing company in TN.

Industry experts believe that the study involving SME players in China would be able to aid GoI to gain knowledge about the firecracker industry in China and the various issues that the industry is witnessing. The firecracker industry in China has been recognised as one of the established industries in the global market. Therefore, a study of this market will certainly provide valuable insights to GoI and SME firecracker units about efficient means of firecracker production, says Nitin Kumar, manager of Infra Limited, a mid-sized firecracker manufacturing company in TN.

There are about 8,000 unorganised units in Sivakasi that can provide valuable data on the firecracker industry in India. The study would help the government in setting up an industrial cluster or special economic zone (SEZ) that would uplift the Indian firecracker industry to compete with its global counterparts.

Challenges of the firecracker project

Setting up an organised sector for the firecracker industry involves certain challenges. Each unit would require 50 acres of land to set up sheds well at a distance from one another, as has been made mandatory by the safety regulations issued by GoI. Therefore, as compared to China, manufacturing of firecrackers in India may become more expensive as setting up of each unit would require huge amount of funds. As a result, the industry would take time to become globally competitive.

by: David Parks

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