Sivakasi's chemical makers diversify into new businesses

Tag : chemical raw

The proposed diversification of chemical manufacturers is likely tocreate a shortage of inputs for traditional matchstick and fireworkindustries in Sivakasi.
J Tamil Selvan, a local chemical manufacturer, said the price of carbonate acid, an important raw material used by chemical manufacturers, has increased almost 10-fold to Rs 30,000 tonne fromRs 3,000 tonne in January this year, primarily due to high freightcost.

Similarly, cost of other raw materials like potassium and nitrogenhave also doubled in the last six months. The Tamil Nadu governmentused to give 50 kg of sulphur for Rs 290 about two years ago, buttoday the rate has increased to Rs 2,150, he added.

Currently 60 per cent of the total production by chemical units inSivakasi is consumed by fireworks and matchstick industries while20 per cent is by the Defence ministry.
Tamil Selvan is one of the 12 chemical manufacturers in Sivakasiwho has decided to close his unit to diversify in the last sixmonths.

R Subramaniyam, another chemical manufacturer, said labour problemhad also affected the industry. Manufacturing units used to runthree shifts a day, but now the same units are running one shiftdue to labour shortage. Subramaniyam's unit produced 70 tonnes ofchemicals for the firework industry every day in three shifts, buttoday it has come down to 20-25 tonnes.

This has also resulted in a supply and demand problem. Since thesupply is low to the matchstick industry, the total sticks in a boxhas come down to 20-25, from the earlier 50.
The chemical manufacturers are even thinking of getting into thetravel agency business in metros like Chennai and Bangalore. Thoughpackaging would be the ideal choice since Sivakasi is known forprinting and fireworks, this industry too is in bad shape.