Cyclone Michaung paralyzes Chennai: Major industries. IT hubs grapple with floods

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Cyclone Michaung paralyzes Chennai: Major industries. IT hubs grapple with floods

Cyclone Michaung paralyzes Chennai: Major industries. IT hubs grapple with floods

Industry News
Dec 08,23

The production at six prominent auto component units, including Lucas TVS, Wheels India, Sundram Fasteners, Sundaram Clayton, and Brakes India, faced disruptions for the third consecutive day.

Cyclone Michaung paralyzes Chennai: Major industries. IT hubs grapple with floods

Unprecedented rainfall and floods, triggered by Cyclone Michaung, have severely impacted the business operations of major industrial and IT hubs in Chennai. The production at six prominent auto component units, including Lucas TVS, Wheels India, Sundram Fasteners, Sundaram Clayton, and Brakes India, faced disruptions for the third consecutive day due to heavy rains inundating the Ambattur-Padi industrial cluster.

These facilities, crucial components of the automotive supply chain, producing items such as air suspension systems, brake systems, wheels, and wiper motors, remained submerged in water and without power supply as of Wednesday night. Covering an extensive area of approximately 200 acres, these companies employ over 12,000 people. Srivats Ram, MD of Wheels India, stated, "There is waterlogging in the Padi [electric] sub-station and inside many of the plants. There is still no power in the Padi area, and hence the companies in the belt have not been able to operate."

Several automotive majors, including Hyundai, Renault Nissan, Daimler, and others, gradually resumed operations on Wednesday after facing production disruptions on Monday and Tuesday. A spokesperson for Renault Nissan explained that the company declared Monday and Tuesday as holidays to ensure the safety of employees and resumed normal operations on Wednesday. Daimler India Commercial Vehicles (DICV) also confirmed the resumption of operations, with plans to normalise production pace in the coming days.

Among the key electronic majors near Chennai, Apple's contract manufacturers Foxconn and Pegatron halted iPhone production in their facilities on Monday but resumed operations on Tuesday. The Ambattur Industrial Estate, housing the state's MSMEs, suffered significant damage, affecting over one lakh people working across 2,000 MSMEs primarily involved in manufacturing components and engineering goods.

With power and internet connectivity not fully restored until Wednesday evening, most IT companies and global capability centres (GCCs) in the city experienced two full days of downtime. Employees were unable to travel to offices or work from homes on Monday and Tuesday as the city's IT corridor remained submerged in water. General insurance companies are anticipating a sharp surge in claims from motor vehicle owners as vehicles were either swept away or damaged.

Source: Indiatimes