Heavy floods have battered Chennai’s industrial and business hubs leading to losses that run into thousands of crores of rupees, claimed experts.
Most automobile companies in Kanchipuram, which houses plants of a dozen bigwigs, registered huge losses. The rain not only hampered production process for days, but also triggered shortage of essential supplies for production to resume. In many plants, workforce remained less than what was needed for full-strength operation due to limited connectivity and transportation.
Over 165 BSE-listed companies worth over Rs 285,000 crore that run operations in Chennai have been hit. But what remains a challenge for the government is holding on to Rs 2.42 lakh crore investment it attracted during the investors’ meet in September.
Industry sources said that major players including Hyundai, Ford, BMW, Nissan, TVS, Renault-Nissan and Ashok Leyland were forced to shut production during the rain. The Ashok Leyland plant at Ennore, which accounts for about 40 per cent of the company’s production, two plants of Hyundai Motor India Ltd’s facility in Sriperumbudur producing 680,000 units, Ford India’s facility with an annual capacity of 3.4 lakh engines and 2 lakh vehicles, and a BMW plant were among those impacted. With loss in sales of nearly 15,000 units, TVS Motor Company was another firm that took a massive hit.
An Assocham study on the third day of the flood made a rough estimate of Rs 15,000 crore loss for the industries.
S Saravanan, a leading consultant with trade bodies, said major roads connecting industrial corridors were damaged making recovery a tedious process. “In many parts, we can see that roads that have caved will need major repair for transportation of trucks and industry vehicles to resume. IT sector also suffered huge losses. Many companies reported shortage of staff as most of their employees are still stuck in inundated areas,” he said
Crippling floods in the city have caused huge losses to the IT industry. IT insiders have pegged the losses at $5-10 million for mid-size firms and $40-50 million for large companies. Cognizant, Infy, TCS and other IT firms have been organizing buses every hour to send employees to Bangalore. Around 2000 employees of each of these companies have already left to work out of Bangalore. HR departments of IT companies are trying to contact each and every employee in Chennai to check their status. Many employees are still stranded in their homes.
Apart from IT sector, automobile industry chamber have estimated the possible losses to be around Rs 15,000 crore. According to Assocham, small and medium enterprises, engineering, textiles and tourism sectors have also been badly hit by the flooding.
Automakers like Hyundai, Renault-Nissan, Ashok Leyland and Royal Enfield remained closed on Thursday and industry sources said things are likely to remain "at a standstill mode" till Saturday. What's more Chennai is also a major auto parts hub. So, the floods could hobble production in automobile factories across the country, said industry experts. The seriousness of the situation can be gauged by the fact that top executives, like the CEO of Ashok Leyland, had to be evacuated and several companies said they were working to help out executives stuck in rain-ravaged areas.
As Chennai continued to fight back unprecedented rain and floods, the death toll climbed to 450 since the onset of monsoon in October-end in the city and neighbouring districts. With the forecast of intermittent rain, sometimes heavy, for Chennai and heavy rain in the delta districts of Tamil Nadu, Army and NDRF teams speeded up rescue and relief operations.
Most automobile companies in Kanchipuram, which houses plants of a dozen bigwigs, registered huge losses. The rain not only hampered production process for days, but also triggered shortage of essential supplies for production to resume. In many plants, workforce remained less than what was needed for full-strength operation due to limited connectivity and transportation.
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Over 165 BSE-listed companies worth over Rs 285,000 crore that run operations in Chennai have been hit. But what remains a challenge for the government is holding on to Rs 2.42 lakh crore investment it attracted during the investors’ meet in September.
Industry sources said that major players including Hyundai, Ford, BMW, Nissan, TVS, Renault-Nissan and Ashok Leyland were forced to shut production during the rain. The Ashok Leyland plant at Ennore, which accounts for about 40 per cent of the company’s production, two plants of Hyundai Motor India Ltd’s facility in Sriperumbudur producing 680,000 units, Ford India’s facility with an annual capacity of 3.4 lakh engines and 2 lakh vehicles, and a BMW plant were among those impacted. With loss in sales of nearly 15,000 units, TVS Motor Company was another firm that took a massive hit.
An Assocham study on the third day of the flood made a rough estimate of Rs 15,000 crore loss for the industries.
S Saravanan, a leading consultant with trade bodies, said major roads connecting industrial corridors were damaged making recovery a tedious process. “In many parts, we can see that roads that have caved will need major repair for transportation of trucks and industry vehicles to resume. IT sector also suffered huge losses. Many companies reported shortage of staff as most of their employees are still stuck in inundated areas,” he said
Crippling floods in the city have caused huge losses to the IT industry. IT insiders have pegged the losses at $5-10 million for mid-size firms and $40-50 million for large companies. Cognizant, Infy, TCS and other IT firms have been organizing buses every hour to send employees to Bangalore. Around 2000 employees of each of these companies have already left to work out of Bangalore. HR departments of IT companies are trying to contact each and every employee in Chennai to check their status. Many employees are still stranded in their homes.
Apart from IT sector, automobile industry chamber have estimated the possible losses to be around Rs 15,000 crore. According to Assocham, small and medium enterprises, engineering, textiles and tourism sectors have also been badly hit by the flooding.
Automakers like Hyundai, Renault-Nissan, Ashok Leyland and Royal Enfield remained closed on Thursday and industry sources said things are likely to remain "at a standstill mode" till Saturday. What's more Chennai is also a major auto parts hub. So, the floods could hobble production in automobile factories across the country, said industry experts. The seriousness of the situation can be gauged by the fact that top executives, like the CEO of Ashok Leyland, had to be evacuated and several companies said they were working to help out executives stuck in rain-ravaged areas.
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As Chennai continued to fight back unprecedented rain and floods, the death toll climbed to 450 since the onset of monsoon in October-end in the city and neighbouring districts. With the forecast of intermittent rain, sometimes heavy, for Chennai and heavy rain in the delta districts of Tamil Nadu, Army and NDRF teams speeded up rescue and relief operations.
Over
165 BSE-listed companies worth over Rs 285,000 crore that run
operations in Chennai have been hit. - See more at:
http://indianexpress.com/article/india/india-news-india/chennai-floods-industries-crippled-suffer-huge-revenue-loss/#sthash.TnqCrAom.dpuf
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