Flood cripples work in Chennai IT sector; companies suffer $60 million loss

IT industry in Chennai suffer heavy losses due to floods. IT insiders have pegged the losses at $5-10 million for mid-size firms and $40-50 million for large companies.

Zee Media Bureau

New Delhi: The incessant rains in Chennai have crippled not just the public infrastructure, even suffered the IT hub in the region.

Chennai has the third largest IT hub in India. As per The Times of India report, IT insiders have pegged the losses at $5-10 million for mid-size firms and $40-50 million for large companies. 

Cognizant, Infy, TCS and other IT firms have been organizing buses every hour to send employees to work out of Bangalore.

The report added that HR departments of IT companies are trying to contact each and every employee in Chennai to check their status. Many employees are still stranded in their homes.

Another major industrial hub, the automobile industry in Chennai have also estimated the possible losses to be around Rs 15,000 crore, said the report. According to Assocham, small and medium enterprises, engineering, textiles and tourism sectors have also been badly hit by the flooding.

Automakers like Hyundai, Renault-Nissan, Ashok Leyland and Royal Enfield remained closed on Thursday and industry sources said things are likely to remain "at a standstill mode" till Saturday.

What's more Chennai is also a major auto parts hub. So, the floods could hobble production in automobile factories across the country, said industry experts.