The Hindu Business Line : Towards making `Little Japan' a world brand

Signing of the joint venture agreement between Standard Fireworks Private Limited, Sivakasi and Standard Fireworks China Limited, China, in Liuyang city.

Sivakasi wants to move forward and faster. The process of globalisastion has presented an opportunity for the entrepreneurs of this industrial town in south Tamil Nadu, nicknmed `Little Japan', to feel confident to turn `Sivakasi' into a brand name and make `Made in Sivakasi' a reality and acceptable the world over. As this century belongs to India, so it does for Sivakasi, they aver. However, the efforts of entrepreneurs will need a matching of the spirit and efforts from the Government and civic authorities too to succeed is obvious as it is with the IT industry in Chennai and unfortunately so with Bangalore

Sivakasi, situated in a dry belt area in Virudhunagar district, emerged in the industrial scene with the setting up of the first units in fireworks and safety matches in 1923.The printing industry added a feather to its cap in 1937. They have been through many trails and tribulations in the succeeding years, weathering many storms, before being proudly nicknamed "Little Japan". Into the third generation, diversification has started and young entrepreneurs are hopeful that they can carry forward the march and spread.

It can be said that organised factory set up with several precautions and safety measures followed in 1940. By 1942, National Fireworks, Kaliswari Fireworks and Standard Fireworks gained prominence. Today there are about 450 fireworks factories producing 300 varieties that include crackers, fancy and colour sparklers and military weapon training items. It employs directly 40,000 workers and indirectly over one lakh workers. The turnover in recent times (at factory cost) is around Rs.350 crores per annum. The revenue to the government from the industry through sales tax is significant, according to industry sources. In the match industry, there are about 3,500 units in Sivakasi inclusive of those in nearby Sattur. About 30,000 workers are directly employed. It meets about 55 to 60 % of domestic requirements. The exports have risen from just 2 containers a decade back to 50 containers a month, valued at Rs.5 crore. "Scope is there to increase the same to even 100 containers per month in the future," says Mr. S. Maheswaran, Director, Asia Match Company Pvt. Ltd. and President, Tamil Nadu Fireworks And Amorces Manufacturers' Association.

Prominence

The printing industry gained prominence in 1930's with the establishment of the Sivakasi Industrial Printing Works that paved way for the name and fame that the industry enjoys today. The industry is the second largest in the world now, next to Guthenburg city in Germany. There are around 600 small, medium and large printing presses including Litho, Offset and Flexo type units located in and around Sivakasi. They undertake multi-various works including security jobs and get orders from overseas including U.K., U.S.A., Middle East, Sri Lanka, France and Canada. They export children's books, novels, textbooks, comics, calendars, diaries and printing stationeries to a value of Rs.300 crore annually. More than 50,000 workers are engaged in the industry. In all these industries, women labour participation and contribution are significant.

Each industry, over the years, has witnessed changes. The fireworks industry successfully broke the monopoly of China in the world market in 1977-78. It was followed up with exports to Japan and Middle East. Exports suffered due to fierce competition from China and a variety of other factors for a good time. Thanks to the process of globalization, the Standard Fireworks has opened a factory in China under a joint-venture entered into in 2002. "The Mayor of the city flew from the capital, offering assistance in infrastructural facilities" mentioned Mr. Rajasingh, Joint Managing Director. The company, `The Standard Fireworks China Ltd.' - exports 100 products to US and all over the world. According to Mr .A.P Selvarajan, Partner, Sri Kaliswari Fireworks, enquiries for exports have started coming to Sivakasi in recent times from South Africa, Holland and Argentina. The printing industry experienced a great slump in 1980-95. Not only the market slipped but began to move to other places. However, modernization helped and Sivakasi regained its stature. Industries have invested in high quality imported machines, each costing Rs 4 to Rs. 5 crores. "Machinery suppliers who earlier would not stay for a day, stay now for 4 to 5 days, as even small players go for new machines," Mr. K. Selvakumar, Partner, Lovely Offset Printers, said.

High standards

The most complex and variegated part of the entire process of printing is finishing and binding. Sivakasi has emerged as number one in this because of high standards maintained in quality. The labourers in the industry are trained and highly skilled thanks to the founding of the Sivakasi Institute of Printing Technology in 1977. Arrival of computer has complimented the printing business. The industry as a whole has gained a status as a clean profession. The success can be attributed to cheap labour, less interference from trade unions, development of ancillary industries, entrepreneurship and a strong manufacturers' association, as per a study from the Confederation of Indian Industry (CII). The printing industry has been identified for promotion of a cluster with a sanction of Rs.37.5 crore in furtherance of its development by the Central Government under its Cluster Promotion Scheme.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page