Cyclone Michaung's devastating impact on Chennai's business landscape

Cyclone Michaung wreaked havoc on Chennai, dumping heavy rainfall and causing substantial damage to manufacturing units, notably impacting the automotive component industry in Padi and the MSMEs in Ambattur. Padi, housing major TVS group companies like Sundram Fasteners, Wheels India, Brakes India, and Lucas-TVS, with a collective turnover of ₹25,000 crore, suffered severe inundation, rendering plants inoperable.

Arathi Krishna, Managing Director of Sundram Fasteners, mentioned, "The situation is worse than anticipated. We're assessing the damage and aiming to resume operations by this weekend."

Critical infrastructure like the Padi sub-station faced waterlogging, leading to power outages, crippling businesses in the area.

The Confederation of Indian Industry reported the adverse impact on commercial establishments and industrial units across Chennai, Kancheepuram, Chengalpet, and Tiruvallur districts due to the cyclone, with gradual normalization being observed among CII members in these regions.

Logistical Chaos: Cyclone Michaung's Toll on Chennai's IT Hub

Chennai, a prominent IT hub, faced logistical challenges as the downpour surrounded IT buildings, hampering employee access. Work-from-home efforts faltered due to power outages and widespread internet disruptions caused by damaged cables.

Social media flooded with visuals depicting waterlogged IT areas like Sholinganallur and Velachery, including the Ascendas IT Park resembling a swimming pool.

Gopal Srinivasan, Chairman of TVS Capital Funds, raised concerns about Chennai's business continuity during the rains, questioning its viability as an IT/ITES hub amid infrastructure vulnerabilities.

Chennai's Resilience: Recovering from Cyclone Michaung's Business Fallout

Experts stressed the importance of robust business continuity plans to mitigate such natural disasters' impact, highlighting the resilience of the IT industry despite recurrent challenges in cities like Chennai, Bengaluru, and Mumbai.

While acknowledging the setback, leaders like MP Vijay Kumar, CFO of Sify Technologies, reaffirmed Tamil Nadu's strengths in talent, education, safety, and entrepreneurship, emphasizing the state's enduring appeal for investments despite occasional disruptive events. Similar incidents in Bengaluru had not swayed investment decisions, Kumar noted.