Cyclone hits Chennai's industrial units, IT hubs

CHENNAI: Unprecedented rains and floods caused by Cyclone Michaung has hit business operations of Chennai's industrial majors and IT hubs.

Production at six major auto component units, including Lucas TVS, Wheels India, Sundram Fasteners, Sundaram Clayton and Brakes India, was hit for the third consecutive day on Wednesday as heavy rains triggered by cyclone Michaung flooded the Ambattur-Padi industrial cluster in Chennai.

These facilities, which form the core of the automotive supply chain manufacturing components, including air suspension systems, brake systems, wheels, wiper motors etc, remained inundated with water and without power supply as of Wednesday night. Spanning an area of about 200 acres, these companies employ more than 12,000 people. "There is water logging 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," Srivats Ram MD Wheels India, told TOI.

Automotive majors, including Hyundai, Renault Nissan, Daimler and others, resumed operations in phases on Wednesday after disruptions of production on Monday and Tuesday.

A spokesperson for Renault Nissan said the company declared Monday and Tuesday as holidays to ensure safety of employees and resumed normal operations as of Wednesday. A statement from Daimler India Commercial Vehicles (DICV) said they have resumed operations and will normalise the pace of production in the coming days.

Among key electronic majors located near Chennai, Apple's contract manufacturers Foxconn and Pegatron halted production of iPhones in their facilities on Monday and resumed operations on Tuesday. Ambattur Industrial Estate, which is home to the state's MSMEs, has been one of the worst hit areas. Over one lakh people work across the 2,000 MSMEs in the estate that primarily make components and engineering goods.

With power and internet connectivity still not restored completely until Wednesday evening, most IT companies and global capability centres (GCCs) in the city recorded two full days of downtime. Employees could neither travel to the offices nor work from homes on Monday and Tuesday as the city's IT corridor remained marooned in water. General insurance companies are preparing for a sharp surge in claims from motor vehicle owners as vehicles got swept away or damaged.