Tamil Nadu rains loss an estimated Rs 15,000 crore, manufacturing, IT takes a hit

Economic activity in several parts of the state, including Chennai has come to a stand still
Tamil Nadu rains loss an estimated Rs 15,000 crore, manufacturing, IT takes a hit
Tamil Nadu rains loss an estimated Rs 15,000 crore, manufacturing, IT takes a hit
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With over 300 people dead, and lakhs of people displaced from their homes, the floods in the Tamil Nadu caused by heavy rains have had a tremendous impact on the life of the people. Economic activity has been shut down

Besides this, they have also affected the major industries set up in Chennai. Over 165 BSE-listed companies are registered in the city, which is also known for being an auto hub.

Almost all automobile and IT majors functioning from the city including Ford, Renault, Hyundai, TCS, Cognizant, Infosys among others have shut shop albeit temporarily. Some companies not affected by flooding have opened their premises to flood-affected people.

With Chennai being India’s second largest automobile manufacturing hub, the estimated economic loss is around Rs.15,000 crore, with Rs 1,500 crore loss in the auto sector this week alone.

A fourth of passenger vehicle production originates from the city and its surrounding belts. Hyundai Motors –the country’s second biggest car manufacturer- reportedly predicted a huge impact on the delivery of new vehicles in the coming year with logistic operations severely affected. Many suppliers of parts are based out of Chennai and hence a supply crunch is foreseen.

Ford India too suspended its operations at its Chennai plant.

Sumit Sawhney, CEO and MD of Renault India Operations reiterated that the safety of their employees was paramount and resumption of operations would depend entirely on the weather improving.

A Nissan spokesperson confirmed that no damage was incurred to their plant, facilities or warehouses, but operations stood suspended till such time the harsh weather abates.

The manufacturer of the Royal Enfield -Eicher Motors- too affirmed the severe impact on delivery which would be conveyed to their customers through their dealers.

Though the IT firms were shut down due to the rains, they were however able to provide seamless service to their clients by invoking the Business Continuity Plans.

The BCP is a previously agreed code which –in case of an emergency- can be used for fellow-workers located in other parts of the country to handle business in the affected area so as to meet deadlines.

Flexible work schedules including work-from-home options too were offered to their employees in the light of many being marooned at home and not being able to venture out.

Matters have been worsened with poor mobile connectivity in the affected areas thereby leading to a gap in communication too.

Even if the inclement weather eases up a bit, it would take a couple of days for the water levels to go down. Only then can the real damage on ground to equipment and other physical resources be actually ascertained.

The majority of areas in Chennai have been deluged by rising floods, with even high rises being cut off from the highways.

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