 "New acquisition sets the wheel in motion for JK Tyre")
JK Tyre & Industries (JK Tyre's) facility near Chennai has reported total production loss of around 700 tonnes. It may be noted, almost all the automajors and auto components companies have decided to close their factories due to heavy rain and floods, which started on November 6.
The tyre major today informed BSE that owing to unprecedented rains in Tamil Nadu, operations at company’s plant located at Sriperumbadur, Tamilnadu have been disrupted for eight shifts.
Total loss of production was of the order of about 700 tonnes. The production and dispatch are getting normalised effective on December 04, 2015.
"There is no damage to the plant and machinery. However, partial damage has been caused to compound wall, internal roads and fencing. The damages caused by natural calamity are adequately covered under the insurance policy of the Company," said the company.
Chennai’s suburbs is the home for automajors including Hyundai Motor, Ford, BMW, Renault-Nissan, Daimler, Yamaha, Royal Enfield, Ashok Leyland, TVS and others. These plants not only caters to domestic market but also international markets.
All the units have closed due to rain and due to an advisory from the state government.
While many of them have not shared the loss details, industry experts pegged could be around Rs 1500 crore.
Due to the rains, in November Royal Enfield said it lost production of 4000 motorcycles. TVS Motor said that it lost 15,000 units due to inclement weather.
