De-risking Automobile Industry from Natural Disasters



Case Code : CLBS148
Period : 2015
Publication date : 2016
Teaching Note :No
Subject :Business Strategy
Case Length : 07 Pages
Countries : India
Industry : Financial Markets


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Abstract: ICMR India ICMR India ICMR India ICMR India RSS Feed

In recent years, natural disasters have become more common all over the world. People have suffered a lot due to earthquakes, floods, cyclones, droughts, and heavy snowfall, among other calamities. These natural disasters have claimed thousands of human lives and affected various industries...


Analyze the effects of the Chennai flood on the automobile industry
Explore some viable solutions to handle natural disasters


In December 2015, for the first time in their history, automobile companies in and around Chennai were forced to close down their plants for 3-7 days because of the unprecedented rainfall on December 1-2, 2015. Within 24 hours, Chennai was battered by a torrential downpour, the heaviest the city had seen since 1901. The rain brought Chennai airport and the metro to a halt; schools and colleges were closed, trains stopped running; and all modes of communication including mobile phones and the internet were disrupted (See Exhibit I). The Associated Chambers of Commerce and Industry of India (ASSOCHAM) estimated financial loss of Rs. 150 billion due to the rainfall and floods in Chennai and other parts of Tamil Nadu. Small and Medium Enterprises (SMEs), the IT-ITES industry, and the automobile industry were badly affected by the heavy rainfall and the resultant floods...

Key words:
Chennai, Flood, 2015, automobile industry, natural disaster, de-risk, crisis management, supply chain issue, production standstill, delay in delivery, plant submerge

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