Cyclone Michaung: Chennai floods disrupt business operations; Infosys, HCL Tech, Foxconn, MRF affected
Due to heavy rains, Hyundai's facility in Sriperumbudur remained closed on Monday. iPhone production also stopped in Foxconn and Pegatron factories near Chennai. Ambattur, which is South Asia's largest small-scale industrial estate. Offices of many IT companies like Birlasoft, Accenture, HCL Tech, and Infosys have also been affected.
Cyclone Michaung wreaked havoc in Chennai as the city was flooded after heavy rains, disrupting the daily operations of many companies on Tuesday (December 5, 2023). Due to Cyclone Michaung, many areas in Chennai received more rainfall than they did in 2015, when floods heavily affected the city areas. Chennai areas like Tiruvallur, Kancheepuram, and Chengalpattu were the most affected. The intensity of the rain was so severe that operations at Chennai Airport were stopped for several hours on Monday.
Impact on companies' operations
Work came to a standstill while operations were heavily affected at many of the major companies in Chennai.
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Ambattur, which is South Asia's largest small-scale industrial estate, is the most affected.
More than 1750 MSME companies were affected, resulting in an estimated loss of more than Rs 7,000 crore.
Due to heavy rains, Hyundai's facility in Sriperumbudur remained closed on Monday.
iPhone production also stopped in Foxconn and Pegatron factories near Chennai.
Ashok Leyland and TVS Motor have plants in Hosur.
There are three MRF plants in Chennai.
The big offices of many IT companies like Birlasoft, Accenture, HCL Tech, and Infosys have also been affected.
How shares of affected companies fared today
Infosys fared poorly as it slid to close down by 0.73 per cent, or Rs 10.75, at Rs 1453.70.
Birlasoft recovered from a midday slump to close higher by 0.33 per cent at Rs 637.35.
HCL Tech had a lacklustre show as it closed down by 1.45 per cent, or Rs 19.45, at Rs 1317.30.
MRF shares ended the trading session higher by 2.09 per cent, or Rs 2,335.55, at Rs 1,13,828 each.
TVS Motor was down by 0.17 per cent, or Rs 3.25, at Rs 1901, at close.
Ashok Leyland ended up by 0.29 per cent, or Rs 0.50, at Rs 175.