Noiseless explosion

Venkatachari Jagannathan
17 October 2003

Sivakasi: At a time when Indian engineering and pharmaceutical companies are making a hue and cry over establishing a marketing office, joint venture or a production facility in China, Sivakasi-based fireworks units have been doing that — noiselessly — since 2001.

Standard Fireworks, one of India's oldest pyrotechnic unit, has a joint venture in China — Standard Fireworks China — with a majority control, and has commissioned two production units there. Also, promoters and technicians from other units have started visiting China to keep abreast of the latest in pyrotechnics.

Says Standard Fireworks whole-time director S Maheswaran, who is also the president of Tamilnadu Fireworks and Amorces Manufacturers' Association (Tanfama): "Technologically, the Chinese, the inventors of fireworks, are well advanced. But what they lack is modern management acumen while negotiating with western corporate houses."

With China entering the World Trade Organisation (WTO) league, the entrepreneurs there want to sharpen their commercial skills, he says. "We formed this joint venture so that we can learn the technology while they sharpen their management skills." Already, Standard Fireworks, with its other overseas business connections, has helped its Chinese partner to increase its exports.

In turn, the Rs 60-crore-turnover Indian company, managing 20 production units, is deriving the benefits of technology transfer. For the past two years Standard Fireworks is playing host to Chinese visitors. "The one crucial aspect in fireworks is the time fuse/wick. The Chinese are good at it. We have to improve in that department," admits Maheswaran.

United colours of Sivakasi
11-1-1 is how one can describe the economic cycle of the Rs 700-crore fireworks industry in Sivakasi that houses 85 per cent of the total fireworks production capacity in the country. The 30-sq km radius around the small town generates business worth Rs 3,000 crore from three industries — printing, fireworks and matches.