Ferrito Plastronics, a modest establishment with a reported turnover of Rs 2 crore-Rs 5 crore, has found a mention in a report published by the Institute of Science and International Security (ISIS) for an enquiry of one lakh ring magnets posted on a Chinese commercial website by an Iranian trading firm, Jahan Tech Rooyan Pars.
The Chennai firm does supply magnets. But these, avers company proprietor Bala Subramanian, are the ones used in loudspeakers, coils and medical equipment. Besides these, there are decorative magnets for fridges, Subramanian's shop assistant displayed to TOI.
So how did Ferrito Plastronics become part of the cloak-and-dagger world of the nuclear mart? Subramanian says he has never had trade dealings with China — his only interaction being an occasion when he left his business card at a trade fair he had attended in that country a few years ago.
Indeed, going by the shop and its trappings, it seems far fetched to visualize the firm as a supplier for highly sophisticated magnets used to enrich uranium to make it weapons grade. Subramanian was close to panic while speaking to TOI over telephone, pleading his innocence, saying he has committed no crime.
"I largely supply coils to Singapore and Korea. I have never traded in China. I only once left my visiting card at a trade fair there. It seems they used my information from the card on the website," said Subramanian. He does business also in Tamil Nadu and Kerala.
Subramanian's problems seem to have stemmed from Jahan Tech Rooyan Pars having posted the enquiry . In 2012, it was 'sanctioned' by Canada over 'nuclear proliferation' concerns. According to the ISIS report, specifications for ring magnets mentioned in the trade query matched those used in IR 1 centrifuges for uranium enrichment.
'Shouldn't I do business?'
Although the ISIS report does not offer any evidence to show Ferrito Plastronics ever supplied to the Iranian company or showed any interest in the query for ring magnets, it has mentioned the Chennai firm in the context of how dubious companies floated by Iran use certain channels to procure nuclear equipment from different sources while routing supplies through China, using its lax trade controls.
Founder and president of ISIS David Albright has said both Indian and Chinese governments should warn companies that there is zero tolerance for any of their domestic companies entering into such transactions.
A panicky Subramanian wondered what was wrong in a foreign company making an enquiry. "Shouldn't I do any business," he asked while maintaining he had nothing to do with nuclear-related magnets.
Subramanian's defence seems genuine, but Albright points out that small companies like Ferrito Plastronics could be used to procure the magnets from larger manufacturers. "I don't manufacture magnets. I source from a company (Winner Electricals) based in New Delhi. Also, we can't match prices of China. I largely supply in Tamil Nadu and Kerala," he claimed.
ISIS is a globally recognized institution dedicated to informing the public about science and policy issues affecting international security. Its primary focus is on stopping the spread of nuclear weapons and related technology, bringing about greater transparency in nuclear activities worldwide, strengthening the international non-proliferation regime and achieving reductions in nuclear arsenals, according to its website.
Claiming that his company's monthly turnover was "a mere Rs 1 lakh", Subramanian said. "The magnets we deal with are used in almirahs, loud speakers and in the field of medical therapy. Why should I be hounded when I have committed no crime?"
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