Auto and electronics majors resume production after rain impact in Tamil Nadu

Chennai: After being shut for two days due to unprecedented rains, top automobile manufacturers, including Hyundai and Daimler, on Wednesday resumed operations at their manufacturing plants near here, even as industrial parks in Ambattur and Padi, which is home to several automobile component manufacturers, in the heart of the city are still under the water.

Key Apple Inc. suppliers Foxconn and Pegatron, who have massive facilities in Sriperumbudur and Singaperumalkovil, have also upped their shutters to resume production of iPhones, sources aware of the development said.

In separate statements, Hyundai, Daimler, and Renault-Nissan said the factories were shut on December 4 and 5 due to heavy rains that lashed Chennai and its neighbouring districts of Kanchipuram, Chengalpattu, and Tiruvallur and on account of public holiday announced by the state government.

“We have resumed work today,” a spokesperson for Hyundai Motor India said, adding that production on December 4 and 5 were suspended due to the impact of Cyclone Michaung. The South Korea-based automobile manufacturer also pledged to contribute Rs 3 crore towards the relief fund, besides conducting medical camps.

Daimler India Commercial Vehicles (DICV), owner of BharatBenz and other brands, said it resumed production on Wednesday and “is fully functional.”

“We have resumed normal operations as of Wednesday December 6, 2023.

We stand in solidarity with affected communities near our Oragadam plant and delivered meals to support them during the cyclone,” Renault Nissan Automotive India Pvt Ltd said.

While several companies in industrial estates in Oragadam, Irungattukottai, and Pillaipakkam have resumed operations, the situation in Padi and Ambattur within Chennai city was grim as the industrial estates are still inaccessible due to inundation.

The north phase of the Ambattur Industrial Estate which houses about 1,500 units is under a thick sheet of water with MSMEs fearing that the loses could be around Rs 2,000 crore. The situation in near-by Padi, which is home to auto component manufacturers like Wheels India, Sundaram Fasteners, and Lucas-TVS, is much worse.

“Padi has six major automobile component manufacturers and all of them are under water. It will takes at least a couple of weeks for these companies to resume operations once water recedes and they get access to the units,” an industry observer told DH.

G Aravind, President, Ambattur Industrial Estate Manufacturer’s Association, told DH that only 10 per cent of the north phase of the estate is accessible while the remaining 90 per cent is completely cut-off as the water level is between three to five feet.

“The impact is much higher than what it was in 2015. The storm water drains were built but the draining seems to be slow. We need a permanent solution to the flooding,” he said.

Tamil Nadu Small and Tiny Industries Association said equipment in MSME units in industrial estates in Ambattur, Ikkatuthangal, Thirumudivakkam, and Tirumazhisai, have been damaged due to the rain and that it might take a year’s time for the owners to overcome the loss. The association demanded that the government to help the MSMEs in offsetting their loses.

K E Raghunathan, Chairman, Association of Indian Entrepreneurs (AIE), said though water will recede from the industrial estates in the next few days, the impact will stay for three to four weeks to get all machines ready and restart.

“The government, besides creating strong infrastructure facilities in industrial estates, should set up a facilitation centre at each estate for faster insurance claims settlement,” he told DH.