Sivakasi firecracker manufacturers are preparing for their best Diwali in recent years, boosted by positive legal developments. But the industry has set its sights on something more ambitious: strategic manufacturing. The industry and the Tamil Nadu govt are exploring whether Sivakasi can extend its pyrotechnic expertise and know-how into defence and space manufacturing.It aims to enter the defence space with emergency flares and signal pyrotechnics, including marine distress flares, infrared decoy flares used as countermeasures on fighter jets, anti-bird airfield devices, safety signalling devices and training and simulation pyrotechnics. The govt is also studying the feasibility of entering complex systems such as zirconium potassium perchlorate (ZPP) electro-pyrotechnic initiators, which are electrically fired igniters for rockets and missiles, with plans staggered over a decade, various people aware of the development told TOI.The industry is in talks with stakeholders to explore possibilities. It has identified eight product categories that Sivakasi can produce in the initial stages, such as flare and fog signals, says Ganesan Panjurajan, president, Tamil Nadu Fireworks and Amorces Manufacturers’ Association (TANFAMA) at Sivakasi and director at Vinayaga Sonny Fireworks group. He said deliberations are going on about more complex electronic fuzes. He said Sivakasi’s core expertise in pyrotechnics and its competence in flares, fuses, igniters and smoke make local manufacturers well suited to the task.The govt has planned a three-stage programme spread over a decade. The first three years will focus on easy categories, and the second stage aims to get into complex systems such as IR decoy flares, smoke grenades and candles, and rocket igniters and delay elements. Over the decade, in the third stage, the govt also targets complex electronic fuzes, which are used as timed devices in modern artillery and bombs, and the supply of propellant precursors for solid rocket motors, chaff, and decoy consumables. This involves precision machining and expertise in electronics and materials science. Discussions are being held with IIT Madras, DRDO scientists and officials of the Directorate General of Quality Assurance (DGQA), which comes under the Department of Defence Production. The govt plans a 35-acre Sivakasi Pyrotechnic Common Facility Centre (SPCFC) to help existing firecracker units improve safety and move up to supplying defence and space. State industries minister S Keerthana said the ministry of defence’s indigenisation mandate has opened this supply chain to domestic MSMEs.“Sivakasi manufacturers can also supply the pyrotechnic subsystems used in launch, spaceport and range operations such as the igniters, initiators, separation devices, flight-termination ordnance, signalling and range-safety pyrotechnics and energetic activation components. Kulasekarapattinam spaceport in Tuticorin, roughly 100 km south of the Sivakasi cluster, will be a key catalyst,” she said. Certain categories, such as signal and distress cartridges, have export potential for Southeast Asia and Africa. Entry-level defence pyrotechnics require a tech transfer from DRDO’s High Energy Materials Research Laboratory (HEMRL), which is gaining traction nationally, while complex strategic components rely on direct partnerships with BEL, L&T Defence and DRDO DRDL, she said.The South Indian Defence Suppliers and Startups Association (SIDA) played a key role in connecting the industry with DRDO scientists, IIT professors and ministry of defence officials. It is also preparing a feasibility report for the govt. Palanikumar V, director of SIDA, said local units can manufacture non-lethal pyrotechnics such as flare signals, flare guns, smoke generators, attention-creating devices and initial ignition components. Beyond explosives, local MSMEs can enter civilian sub-contracting and component making for defence PSUs where complex explosive licences are not required. Few firms are exploring the opportunities, he said, adding that fireworks manufacturing experience does not translate to military explosives, which operate under completely different chemical and safety standards. Palanikumar cautioned that transitioning to defence pyrotechnics is a long-term, high-barrier effort, as defence manufacturing has strict multi-agency licensing, heavy capital requirements and multi-year qualification timelines.Air Marshal (Retd) M Matheswaran, president of the Peninsula Foundation and former deputy chief of integrated defence staff, said manufacturers should start with simpler products before scaling up to complex systems. “The shift toward missiles, drones, and long-range weapons will exponentially increase demand for pyrotechnics, creating major opportunities in the defence supply chain.