JK Tyre reports production loss of 700 tonnes due to Chennai floods
Published On 03-Jun-2016 23:34:07
Indian tyre maker JK Tyre reported that operations at its manufacturing plant in Sriperumbudur is disrupted for eight shifts due to excessive rains in Tamil Nadu. The company stated, "Total loss of production was to the order of about 700 tonnes. The production and dispatch are getting normalised from Monday and there is no damage to the plant and machinery. However, partial damage has been caused to compound wall, internal roads and fencing.”
The company added, “The damage caused by natural calamity is adequately covered under the insurance policy of the company.”
Chennai has been badly hit by the floods and the economic loss is estimated to be around Rs 15,000 crore by industry body ASSOCHAM. The southern part of the city remained submerged in water for almost a week after it saw precipitation of 1,218.6 mm in November. According to Skymet, the precipitation was three times more than normal this time.
JK Tyre's plants in other parts of the country have been operating as usual. Moreover, the production and dispatch at the Chennai plant had normalised by December 4.
Motorcycle manufacturer Royal Enfield also reported that operations at its manufacturing facility has been disrupted and its offices in Chennai are being temporarily shut down.
Blaming the rains, the company reported that it lost production of 4,000 motorcycles.
Moreover, several other automobile companies like Hyundai, Ford and Renault have their plants in Chennai. These companies have also suspended their operations in the region. Furthermore, famous tyre maker Apollo Tyres has also done the same.