Being the second largest economy in India with a GSDP of ₹9,767 billion, Chennai floods proved to a economic debacle for the state of Tamil Nadu.
Some of the major indistries that have their headquarters in Chennai were shut temporarily, all cumulating to a whopping loss of Rs 15,000 crores. 20 cm rainfall in 14 hours would have dampened the spirit of any state, but not Tamil Nadu. As life limps back to normalcy so do the industries.
However, a huge gap has to be filled up that has already started digging a huge hole in the pockets of the administration.
Chennai is host to the countries biggest and the largest auto manufacturers who have their factories here. These are Ford, Daimler, Nissan, TVS, Hyundai, Renault-Nissan and Ashok Leyland.
Ford, hwich is said to have an annual capacity of 3.4 lakh engines and 2 lakh vehicles has shut shops temporarily for employee safety. While some companies like Eicher Motors, Ashok Leyland and Maruti Suzuki have shown an increase in sales in the month of November, experts opine that the sales target for the following month will not be achieved because of the rains.
TVS Motor Company, for instance, showed an increase of 2.43% in the total sales at 2,25,401 units in November. However, in a statement, the company said,"Incessant rains for the past three weeks in Chennai have had an adverse effect on company's production during this period. The company suffered sales loss of approximately 15,000 units due to inclement weather."
In fact the share price of TVS Motor Company dipped to 4.14% at Rs 291.0 in BSE during the rains. The same issue was observed in the brokerage sector that witnessed a major hit on the production of original equipment makers that have factories in the area.
Bus industries slackened
The deluge did not spare the bus industries as tickets were cancelled in huge numbers. It is estimated that the industry incurred a loss of close to Rs 150 crore over the four days of rainfall.
Arun Athiappan, CEO of Ticketgoose.com, a bus ticket booking portal, observed: "We had a surge in cancellations in the last four days. There were calls to our customer care requesting ticket cancellations as passengers could not travel from their houses to the bus boarding point."
The import of food materials and beverages too were affected as lorries got stuck on the road in various places. This led to price rise of vegetables like beans, tomatos and drumstick.
President of the Tamil Nadu Lorry Owners Association, R Sugumar said,"Several thousand trucks were stranded in many highways due to flood. The trucks not only carry essential commodities, but also transport several goods for industries.
Since most of the national highways, including Chennai-Bangalore, Chennai-Puducherry-Nagapittinam, and other highways that lead to southern districts were flooded, the truckers suffered a loss of about Rs 200 crore in just a week."
Diwali was not as fun
Given the incessant rains, the crackers industry showed slackened growth. Incidentally, the Rs 5,000 crore business suffered a major hit and sales and manufacturing were reduced by 50%.
A Asaithambi, a senior advisory committee member, Tamil Nadu Fireworks and Amorces Manufacturers' Association (TANFAMA) said,"sales crashed to Rs 3,000 crore this year since purchases were totally down during the two days before and after Diwali due to heavy floods and rains."
However, the only positive signs were that of the IT, where employees were allowed to work from home, which kept the industry running.