The Hindu Business Line : Sivakasi: A high quality education centre

In the match industry, organized factories sprung up in Kerala, Maharastra, Gujarat, Karnataka, Andhra Pradesh, West Bengal and Uttar Pradesh. Largely hand-made earlier, the industry turned mechanical since 1991; moved away from conventional wood to cardboard box and from wooden stick to wax match.

Industry associations in the handmade match sector point out that adoption of mechanized processing and entry of corporate companies like ITC (Indian Tobacco Company) are compounding the industry situation, putting their existence at stake. Currently, the domestic demand for matches is on the decline and the industry is faced with excess capacity, mechanized units including. The production has come down by 30 %, says Mr .S. Ashok, Director, Pioneer Asia Group. Further, the industry is beset with problems of shortage and increased cost of raw materials and quality labour. However, the price of a matchbox has remained stagnant and cannot be raised for obvious reasons, the industry sources point out.

According to the CII study, the decline in demand is due to increased use of lighters and a fall in smoking habit, especially among the younger generation. With the scope for new entrants into the industry getting limited, the existing industries in the organized sector expect that they must be allowed to modernize in a systematic manner in the changing global scenario for survival. Adoption of new technologies for the betterment cannot be wished away as the changes would ultimately benefit only the consumers. While the other industries are allowed to modernize and adopt new technologies, the match industry is not.

Support from the government is not very much forthright. Rather, "we are very much singled out and penalized " an industry entrepreneur in the organized sector feels Already the entrepreneurs in the industry have started taking to diversification. A fear has emerged recently over the impact the proposed free trade arrangement among the SAARC countries would have on the industry as Pakistan and Sri Lanka might pose problems for them. "Indian match industry will need strong protection," asserts the MLA from Virudhunagar, Mr. C. Damodharan.

The organized fireworks industry, despite its success and eminence, is facing problems of stringent rules and regulations over decibels and use and licensing by the authorities, being held as a hazardous industry and categorized as belonging to high risk explosive segment. The classification creates difficulties while loading consignments in ships, especially in mother ships, says Mr. A. P. Selvarajan. Increasing use of explosives by terrorist groups and naxalites and accidents that occur within the industry pose further problems. This is because Sivakasi is looked at as a source for the supply of the explosive materials.

Illegal units

The emergence of illegal units in and around Sivakasi has further added to their woes. Industry sources point out that accident rates in the organized sector are very few and largely occur in the unorganized segment. However, the industry as a whole faces harassment from the authorities to no end. For the fault of a few, the majority has to suffer, is their refrain. Further, the periods for the sale of fireworks at the time of festivals like Deepavali through licensing entail problems The policy approach needs modification and relaxation, it is felt. Categorization of the industry as belonging to light explosive segment and a reasonable control would go a long way in helping the industry increase the exports for the country, says Mr. A. M. S. G. Ashokan, Managing Director, The Arasan Group of Industries. Another problem faced by the industry in the Indian domestic market relates to fixation of MRP (Maximum Retail Price) Rates for the fireworks. In Bangalore and Pune markets, these rates are fixed high and huge discounts of even up to 50 % are offered to attract buyers. A uniform policy is required in this respect in the country, it is said.

Education centre

Sivakasi has emerged as a quality education center. There are 13 schools, 3 Arts , 2 Engineering and 1 Pharma College and 2 Polytechnics. Mepco Engineering College has earned a name in the state. Arasan Ganesan Polytechnic has earned a name. Students from Sivakasi have come off with flying colours in Xth and XIIth standard school examinations in the state. This commitment to education, in addition to industrial ventures, is yet another feather to Sivakasi and reflects the importance attached to education by the local entrepreneurs.

The town is emerging as a center for more diversified pursuits in recent years. The young, educated and trained third generation entrepreneurs are stepping into the fields of textile, construction industry, bio-diesel, IT, consultancy services etc. BPOs, Medical Transcription and Software development are the efforts in the offing. The Trinity Stewards (P). Ltd has made a mark in blasting concrete structures in the construction industry. The Srinivasa Fine Arts has created a demand for its ponds with colour fishes even from abroad.

There is a proposal to establish a Rs. 50 crore Common Integrated Textile Park on Sivakasi-Srivilliputhur stretch. If this fructified, this will be one more feather in the town's cap and would provide employment to about 10,000 workers. According to Mr .N. Baskaran, a Chartered Accountant and the Chief Coordinator of the proposed venture, the dry and moderate climate is found to be suitable for a foray into a new area of activity. Recently, a meeting was called for a discussion in association with the Rotary Club of Sivakasi and State Bank of India in which the idea crystallized, he said. Banks must give incentives for diversification, provide loans with interest on par with housing loans with a repayment period of 15 years and more importantly and no collateral should be asked from entrepreneurs with proven track record, he said. A worrying factor has been the inconsistent policy approach on textile parks by the Government, coming up with impractical conditions to the entrepreneurs, he added.

All the entrepreneurs believe that Sivakasi has the spirit and potential to perform and succeed, given the infrastructure facilities. That the town woefully lacks in this respect will not escape the attention of any visitor. There are no good roads. Sanitary conditions are very poor. The town lacks in drinking water facilities and encroachments abound. Professionals hesitate to visit the town. On an average, 500 truckloads of goods come to and leave from Sivakasi daily for various destinations. Yet the municipality is not battling an eyelid is the complaint from many.

People's initiative

Ruing with anger, Mr. G.Abi Ruben of Ayyan Group of Industries and President, Exnora Innovators, said, though feeling helpless, measures were initiated through Exnora Innovators in the past few years to improve the civic conditions in Sivakasi. Participating in a municipal tender with support from Sivakasi Tax Payers Association comprising all industries and trade, the sanitary conditions of the town are being sought to be improved. Civic Exnora has been engaged in solid waste management and greening the environment. The entire railway stretch has been taken up, he described. It is suggested that a two-way laning in and around Sivakasi is a must for speedy movement. The early completion of the Manoor Water Scheme, on hold for a long time, for the supply of water to the town is awaited. Its completion would make available 56 lakh litres of water per day for both domestic and commercial use, is being pointed out. The Virudhunagar MLA, Mr. Damodaran is hopeful of the scheme being completed by 1st April, 2006.

The town awaits a sincere response from the municipality and the government for the improvement of its civic conditions , to climb up the ladder fast, grow and export more, given the proximity to the port at Tuticorin and the airport at Madurai.

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