In 1940, when the Indian Explosives Rules were enacted and a system of licensing was introduced for the production of fireworks, the first organized factory for fireworks was established in Sivakasi with all the precautions and safety measures. After the World War II, the scope for the firework industries broadened due to the reopening of the export and import gateway. And then several new units of fireworks came into existence such as Kaliswari Fireworks, National Fireworks and Standard Fireworks. These three factories marketed their products throughout India.
Now, there are about 450 fireworks factories in Sivakasi, which are giving direct employment to about 40,000 workers and indirect employment to about one lakh people. The firework factories in Sivakasi also produce training weapons for military. These training weapons are used by the armed forces to train new officers.
But, fire accidents in Sivakasi are the most tragic events, and injurie many people almost every year. The main reason behind these tragedies are the trade union functionaries. Due to frequent fire accidents in Sivakasi it is fondly called as Kutty Japan (mini Japan) by the manufacturers, reported website sivakasionline - Japan because, it too, suffers at the hand of nature and fate due to natural calamities.
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