How to Start Fireworks Business in Diwali


While Diwali is a time for many to go on a shopping spree and celebrate with loved ones, there are some individuals who seize this opportunity to embark on a unique venture and earn some extra money.

They dive into the world of fireworks, even setting aside their regular professions temporarily, to cash in on the Diwali euphoria.

In this article, we will explore how you can start your very own fireworks business during this festive season and make a splash in the market.

Diwali: The Festival of Lights and Fireworks

Diwali, known as the ‘festival of lights’, holds immense significance for Indians all around the world. Bursting crackers has been a cherished tradition during this festival, but concerns about air and noise pollution, as well as environmental issues like global warming and vehicular pollution, have prompted the government to introduce regulations to ensure a balance between celebration and environmental responsibility.

While the Supreme Court’s focus on the environment and air quality is commendable, it is equally important to acknowledge that the fireworks business is a traditional and legitimate enterprise protected by the Constitution of India under the Right to Work.

Fireworks fall under the category of low-hazard explosives, and their sale is regulated by the Explosives Rules, 2008, framed under the Explosives Act, 1884. To possess and sell fireworks, a license is required to ensure compliance with safety guidelines.

Types of Fireworks Shops

Fireworks shops come in various forms, catering to different needs and quantities. Some shops operate year-round, while others pop up as temporary stalls during the festive season. Let’s explore the classifications:

  • Shops for Possession and Sale of Amorces and Sparklers: These shops deal with amorces and sparklers exclusively, and if the quantity doesn’t exceed 100 Kgs., no license is required.
  • Temporary Shops for Fireworks During the Festival Season: These stalls are set up specifically for the festive season and require a license in Form LE-5 of the Explosives Rules, 2002, issued by the District Magistrate.
  • Permanent Shops for Fireworks: These shops can possess and sell fireworks, with quantities not exceeding 100 Kgs. of manufactured fireworks and 500 Kgs. of Chinese crackers or sparklers. They require a license in Form LE-5 issued by the District Magistrate.
  • Permanent Shops for Larger Quantities of Fireworks: If the quantities exceed the limits mentioned above, a license in Form LE-5 issued by the Petroleum and Explosives Safety Organization (PESO) is necessary. For instance, possession and sale of fireworks not exceeding 300 Kgs. of manufactured fireworks and 1200 Kgs. of Chinese crackers or sparklers.

Storage and Sale of Larger Quantities of Fireworks

While a single firecracker may not pose significant harm, maintaining and regulating a manufacturing facility that stores large quantities of gunpowder and other volatile chemicals can become a public hazard. The Explosives Rules, 2008, address this concern by establishing guidelines on the storage and sale of larger quantities of fireworks.

Two options are available for maintaining a firecracker facility:

  1. Storehouse of Fireworks: A fireworks storehouse can possess up to 5000 Kgs. of fireworks. To acquire possession in a storehouse, a license in Form LE-3 of the Explosives Rules, 2008, must be obtained. However, it’s important to note that fireworks cannot be sold from a storehouse, and no storehouse license will be granted unless there is a licensed firework shop, as issued by PESO following the format in Form LE-5.
  2. Magazine of Fireworks: To store quantities exceeding the permissible limits, one can construct a magazine away from inhabited areas. The capacity of the magazine determines the specified safety distances that must be maintained on all sides. For instance, a magazine with a capacity of 200,000 Kgs. of fireworks requires a mandatory 71 meters of safety clearance on all sides. To obtain a license for a magazine, one must acquire Form LE-3 issued by the Chief Controller of Explosives of the respective city.

Other Requirements and Procedures

To embark on your fireworks business, you need to fulfill certain requirements and complete specific procedures. Although the exact documents and formalities vary from city to city, the standard procedure involves the following steps:

  1. Obtain a No Objection Certificate (NOC) from the Fire Service Department.
  2. Seek permission from the District Collector or District Police Office.
  3. Inform the Local Police Station and acquire permission.
  4. Prepare the necessary documents to apply for a license, including:
    • An application in Form AE-3.
    • Five copies of your store construction plan.
    • A Demand Draft (DD) worth Rs. 600, payable to the Joint Chief Controller of Explosives at a specified location by the respected PESO office.
    • Unique signatures of the authorized person(s) for correspondence.
    • The nomination of the occupier document.
    • Recent passport-size color photos (5 copies) of the occupier with their signature on the front.
    • A copy of the occupier’s photo ID proof.
    • Land documents.

Remember, the requirements and documents needed for selling Diwali crackers are the same for both online and offline sales.

Before proceeding, familiarize yourself with the Explosives Rules mentioned by the Petroleum and Explosives Safety Organization (PESO), regulated by the Government’s Ministry of Commerce and Industries.

Ignite Your Fireworks Business

When we think of business ventures during Diwali, the first idea that sparks in our minds is the firecracker business. Although some states in India have imposed restrictions on buying and selling firecrackers, numerous regions still allow this traditional celebration.

If you’re considering entering the fireworks business, start by obtaining permission from your local police station. Once you’ve acquired the necessary permits, you can revel in the opportunity to earn thousands, if not millions, in profits from this lucrative venture.

Now, light the fuse and let your fireworks business soar this Diwali! 🎇🎆