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  • 20.12.2018
  • by Aracage
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CASE STUDY TWO, THE SAFETY MATCH INDUSTRY IN INDIA

How to make Swedish snus

These products are known as moist smokeless tobacco. The company also makes machine-made cigars , matches , and lighters and sells batteries, light bulbs and disposable razors. Swedish Match operates in 11 countries and has approximately 5, employees The products are sold globally, with a majority of sales originating in Scandinavia and the United States. It is a constituent of the OMX Stockholm 30 index. The group had total sales of approximately SEK Snus and moist snuff accounted for 47 percent of sales and 57 percent of operating profit from product segments.

In addition to being directly active on social media, Swedish Match have engaged in 'influencer marketing' in which the marketing occurs indirectly through key influencers online. Some bloggers received regular free snus samples from Swedish Match and then reviewed the products online, including British blogger Tim Haigh.

Haigh and Swedish Match later became involved in a controversy which saw researchers from the University of Bath receive verbal abuse over a peer-reviewed article which highlighted that snus was being sold illegally across the EU via the Internet, contravening three EU Directives and Swedish national legislation. In Decemberthe Norwegian Parliament approved plain packaging legislation on cigarettes and snus. Swedish Match sought an injunction from the Oslo County Court to delay the legislation, arguing that the Norwegian government was in breach of the free European Economic Area EEA trade rules and that the intervention plain packaging of snus boxes was not in proportion to the health risks associated with snus.

In November the court rejected the Swedish Match claims, ruling that plain packaging was "an evidence-based and internationally recommended measure" adding that it was "a legitimate measure in line with the EEA Agreement". Insales of snus were banned in Europefollowing an aggressive attempt by the US Smokeless Tobacco Company to introduce smokeless tobacco to several European markets in the mids.

The snus ban severely limits the growth potential of Swedish Match in Europe, and the company has been attempting to lift the snus ban in the last decade using multiple tactics.

Officially, the cottage industry in match making is defined as any manual of the country however, and India began to import matches from Sweden and Japan. Swedish Match AB is a Swedish company based in Stockholm that makes snus, moist snuff, During , STAB's share of the world's matchmaking fell to 20 percent. When the match market declined sharply in the s, STAB looked for . Swedish Match develops, manufactures, and sells quality products with market leading brands in the product segments Snus and moist snuff, Other tobacco.

The two main platforms of the company's opposition to the snus ban are free trade and harm reduction. In a submission to the public consultation that was part of the TPD review, Swedish match claimed that banning snus "denies million smokers in the EU access to a traditional and non-combustible tobacco alternative to their cigarette".

The scandal, besides raising questions about the transparency around EU policy making, also exposed the murky lobbying practices of Swedish Match in its attempts to have the snus ban lifted.

Evidence showed that the company had inappropriately sought access to Dalli in his private sphere in Malta via Gayle Kimberley, a Maltese lobbyist not registered at the EU Transparency Register. In the aftermath of the scandal, Swedish Match publicly lied at several occasions suggesting that Kimberley had met Dalli TWICE, the first time in January and the second time in February when the alleged bribery attempt had supposedly been made.

However, when Hildingsson shared this version of events with the media, Swedish Match had already been informed by OLAF that Kimberley had lied about her presence on this supposed second meeting. That's not a lie". Inthe first automatic match producing machine was designed.

The man responsible for this was engineer Alexander Lagerman. In the s and s, technology developed quickly, and match production switched from handicraft to large-scale industry. Of course, this success simply invited imitation.

Welcome to Lemarc Thomas Matchmaking and Relationship coaching. the ' Match King', headquartered Swedish Match, making matches (in a box). You are .

The result? New match factories. All in all, there have been at least of these factories in Sweden! Most of them disappeared as quickly as they appeared, but there were enough of them, and gradually the competition became very strong, both on the Swedish and on the export markets.

Over time, more and more companies joined forces with one of these groups, and the Swedish match industry was made up of two large blocks. Having a single major group made it easier for the company to resolve the problems in the industry. The biggest problem of all was the shortage of raw materials that prevailed during the First World War.

Thus, small-scale, factory-based match production units employ by far the largest number of peopleworkers involved in the match sector.

As is the case with many FBSSEs the production of wooden matches is highly suited to handmade, household-based production. For every 6 workers employed in the mechanized sector, 22 can be employed in the non-mechanized sector. Men, women, children, the elderly and partially handicapped persons can all be employed. Match making by hand is labour-intensive. It requires low levels of technology and relatively small capital investments. A number of operations in the production process can be easily undertaken at home.

These factors clearly demonstrate the significant socio-economic value of small-scale match production. Recognizing this, Indian government policies have consistently favored the handmade sector. All future expansion of the match industry is reserved for this sector, with particular emphasis on the cottage sector. These districts are in a very dry, unirrigated area where the rural population has traditionally been extremely poor.

In Kerala there is a tradition of practicing farm forestry on home gardens and around plantations. Farm forestry is now being promoted by the State Forest Department. The following case study describes the development of the match industry in southern India over the last several decades. In particular it highlights the effects of concerted government efforts to encourage the small-scale sector.

The study also points out some important issues and constraints including a chronic shortage of raw materials which many FBSSEs face the world over.

Firsthand and secondary data for the study were drawn from various sources in the states of Kerala, Tamil Nadu, Andhra Pradesh and Karnataka. Various commissions and institutes involved not only in match making but also in the cottage, small and medium industry sectors were consulted. Interviews of several entrepreneurs in the non-mechanized or unorganized sector provided further information on small-scale match enterprises.

Data from Wimco, one of the oldest wood processing and professionally managed private sector enterprises in India, contributed much of the information used in the analysis of the organized sector.

Around immigrant Japanese families who settled in Calcutta began making matches with simple hand- and power-operated machines. Local people soon learned the necessary skills and a number of small match factories sprang up in and around Calcutta.

These small match factories could not meet the total requirements of the country however, and India began to import matches from Sweden and Japan. During the First World War, when Swedish matches could not be imported, the Indian market was fed mainly by imported matches from Japan and by the locally made ones which followed the Japanese pattern introduced in Calcutta. After the war, factories in Calcutta were unable to compete with imports, and handmade match production shifted to southern India, especially in the Ramanathapuram and Tirunelveli districts of Tamil Nadu State.

This shift was due to the pioneering efforts of P.

Iya Nadar and A. Shanmuga Nadar who went to Calcutta to learn the process from Purna Chandra Ray, a local businessman, who had learned the trade in Germany. The Nadars set up a number of manual match production units in extremely poor regions of Tamil Nadu, where a combination of the dry climate, cheap labour and availability of raw materials from nearby Kerala created ideal conditions for match production.

The first sulphur match that would bum when brought into contact with a rough surface was produced in South India inand the first safety match, in the form we know today, in Wimcostarted operations in as a unit of the multinational Swedish Match Company.

Wimco is still the only representative of the large scale sector in wooden match manufacturing and is the only fully mechanized match factory in the country.

The ability to make fire has always been vital to human life. Yet it was not until the 19th century that the cheap safety match was invented, and a flame could. It all starts with a tobacco seed. This is the beginning of a process that has been perfected over almost two centuries. Swedish Match unites traditional know-how . Swedish Match is a Swedish tobacco company that manufactures and sells . EU policy making, also exposed the murky lobbying practices of Swedish Match in.

During the past three decades, the Indian match industry grew especially rapidly. Government policies protected Indian matches by placing protective tariffs on imported products and specifically favored the expansion of the handmade, small-scale sector through the use of differential excise taxes. Protective tariffs, differential excise duties and sales tax exemption are some of the mechanisms used by central and state governments to develop the industry.

This tax was later confirmed as a protective tariff inand attracted a number of new entrepreneurs, with both semi-mechanized and handmade factories, to the industry.

In the town of Tidaholm, Swedish Match produces million matches each day. Two per Creating fire has always been crucial to the survival of mankind. We make Swedish snus from selected tobacco varieties, aroma substances, salts , water and humectants. All ingredients are approved for use in food and. Swedish Match develops, manufactures, and sells quality products with market- leading brands in the product segments Snus and moist snuff, Other tobacco products and Lights. Making strides toward our vision. CEO comment.

Match production is usually measured in boxes. Each match box contained approximately 60 match sticks initially, new standards mandate that each box contain 50 sticks.

This was doubled to Rs 3. During this 8-year period, the excise duty was uniformly applied to all manufacturers of matches. In a major change in policy was introduced with the differential excise levy. The rate remained unchanged at Rs 3. Over the next ten years further classification resulted in 5 levels of production with progressive concessions to smaller units.

In the basis for differentiation was expanded to include the mode of production as well as the volume produced. This decision further strengthened the small-scale enterprises and remains as a main plank of government policies in the present. In an even more dramatic spread in excise duties was mandated, raising the duties of the mechanized sector and lowering those in the handmade sector. Most recently, production limits on the middle and cottage sectors have been removed with an excise duty of Rs 3.

The objectives of these decisions were to: - ensure the acceleration in the share of the cottage sector at the expense of the mechanized sector and the larger non-mechanized handmade sector; - increase employment, particularly in rural areas; - to minimize the impact of match price increases to the consumer. The differential levies in force in and are illustrated in Table 4. Between and the number of factories increased from 27 to The government is aware that the policy of differential excise levies acts as a positive disincentive for small units to expand their production and even encourages some bigger units to go in for deliberate fragmentation.

No satisfactory solution which would strike a balance between the legitimate interests of the small sector and prevention of abuse of official policy has been developed.

Our company

There are a number of match producers who have fragmented their units to get the benefit of concessions, but at the same time there is a growing trend towards centralized ownership of many smaller units.

Another result of government policies has been to severely limit the activities of Wimco in the mechanized sector.

Most of the raw materials are the same regardless of the level of production, but the process is slightly different in the mechanized and hand-made sectors. With the exception of sulphur, all the basic raw materials are produced within India. A full appreciation of the employment potential of the match industry should also consider the workers involved in the production of all of these raw materials.

Both the quantity and quality of matchwood are determinants for quality products. Historically the Indian match industry depended on imported wood including aspen Populus tremula from Sweden, Canada, America, and Russia; cotton wood Populus deltoides from Canada; balsam poplar Populus balsamifera from Manchuria; and linden Tilia japonica from Japan.

But the government quickly moved to encourage the use of indigenous woods by restricting the import of foreign poplars.

One result of the early use of poplar wood has been that the consumer continues to associate good quality matches with light colored wood, placing further limitations on the selection of indigenous species. Ailanthus malabarica, DC A large number of Indian tree species have been found suitable for use in the match industry. Among the most important Indian matchwoods are semul Bombax ceibaalso known as Indian cottonwood which is good for boxes as well as splints, Indian aspen Evodia roxburghiana and white mutty Ailanthus malabaricaboth suitable for high quality splints.

It is easier to find good match wood then box wood. While 29 species have been identified as suitable for match wood, only a few are acceptable for making high quality boxes.

Of these only semul is commercially available on a sufficiently large scale. But supplies of semul are being steadily depleted in spite of government efforts to raise plantations. Semul requires a forty to fifty year rotation to grow large enough to produce quality veneer which further exacerbates the supply problem.

In response, a number of substitute woods of poorer quality are being used, particularly by the cottage sector. For instance, the wood of the rubber tree Hevea brazilensis from plantations in Kerala is now being used for boxes.

Swedish match making

Wood supplies have drastically declined in the last 25 years, and the demand for matches continues to grow. For one case 7, matches with 50 splints per box of wooden matches approximately 0. Recently prices of some other materials such as match wax, potassium chlorate, potassium bichromate and blue match paper have risen dramatically.

The steep rise in the price of potassium chlorate since from Rs to Rs 1, per 50 kg illustrates this trend. In the hand made sector veneer for match boxes and splints are produced separately. The remaining stages are all done manually, often as piecework at home and then assembled or boxed at small factory units.

The technology of match making is relatively simple and involves a number of stages, whether they are mechanized or not: i. Processing timber logs into outer and inner box veneers and splints is the first stage. This process requires power operated machines but these can be simple, locally made, slow speed log peelers or the high speed Swedish made peeling lathes, splint choppers, and splint dryers used by Wimco. In the mechanized sector the cut splints and box veneer are fed directly into box making machines and match dipping machines.

In the small-scale and cottage sectors the cut splints and box size veneer are transported from producers in Kerala, across the border to factories in Tamil Nadu.

Box making comes next and is done both by machine as well as manually. In the hand-made sector outer veneers are issued to workers either at the factory or at their homes along with blue match paper cut to size. Tapioca flour-paste is used to assemble the outer boxes by hand. Although rates are currently under revision an average worker can make 40 to 50 gross boxes per day, at little more than 0.

Inner boxes are prepared the same way, usually by women, at home, with 35 gross a day at 0. Dipping and filling in the handmade sector begins with the distribution of the cut and cleaned splints to workers along with wooden frames consisting of 50 laths, each with 50 grooves.

These frames must be filled by hand, each splint fitted into a separate little groove and is the most labour-intensive of handmade match operations.

The dipped matches are now dried atmospherically in racks.

How to make Swedish snus

Once dry the splints are filled in boxes at the rate of 50 per box and put into side-painting frames and levelled. Thereafter, a mixture of red amorphous phosphorous, glue and bichromate of potash is manually painted with a brush on one side.

This side painting is usually done by monthly paid adult workers, mostly men. Labelling and packing come next, once the side painting dries. Workers take the painted boxes from the frames and affix labels and excise stamps to them. The labelled boxes are then packed into dozen packets and 12 dozen packets are packed into a one gross box.

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1 thoughts on “CASE STUDY TWO, THE SAFETY MATCH INDUSTRY IN INDIA

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