Tamil Nadu’s Micro, Small and Medium Enterprises (MSMEs), accounting for the largest number (15.07%) in the country, suffered major setback during unprecedented rains in Chennai and several parts of the state. The state has 6.89 lakh registered MSMEs. They produce over 8,000 products with investments totalling over Rs. 32,008 crore.
Most of the SMEs are situated in the low-lying suburban areas of Chennai which were badly affected. The torrential rainfall for over a fortnight dislocated normal life hitting hard trade and industry located in several SME clusters particularly in low lying areas of the city suburbs.
As per Tamil Nadu Small and Tiny Industries Association, small businesses have suffered a damage of over Rs 200 crore to machinery and material and about 10,000 lost man days.
Chennai rains have also hit the auto plants hard, particularly large number of auto components industry, many of which had to shut down due to water logging in the area and water entering factory premises damaging plant and machinery. The production has come to grinding halt as a result in large number of SMEs.
Urbanization, unplanned haphazard and mushrooming growth are the main contributory factors for floods in Chennai, town planners said fearing more such flooding in future if administration failed to take immediate long term corrective measures.
Automobile and engineering industries, IT, ITes, textile and tourism have also been adversely impacted due to heavy rains.
Insurance companies have started receiving claims from Small and Medium Enterprises as heavy inundation has caused damage to the stock, equipment and machineries in industrial units.