Mumbai floods hit business in Gujarat

AHMEDABAD/SURAT: The floods in Mumbai left businesses in key Gujarat cities high and dry literally as ATMs jammed, transports of goods stalled and important business meetings had to be either cancelled or rescheduled as air, road and rail links with the country���s financial capital snapped.
The Surat-based diamond and textile industry, which has close trade links with Mumbai, was dealt a severe blow as disruption of transport hit domestic trading and exports consignments with estimated losses of around Rs 300 crore."Non-fulfilment of commitments and blocked payments on business deals has badly affected the diamond trade,which is heavily dependent on Mumbai," Pravin Nanavati of Gujarat Hira Bourse said.
"With forward movement of consignments at a halt the textile industry has suffered losses of around Rs 15 crore,"Dev Kishen Manghani of Federation of Surat Textiles Traders��� Association said, adding "with several dyeing and printing units in Mumbai flooded, consignments of fabrics from Surat to Mumbai for further value addition and exports too have been impacted."
It was milk worth around Rs 50-60 lakh down the drain for Gujarat Co-operative Milk Marketing Federation, which markets milk and milk products under the Amul brand, as it could not distribute around 2-3 lakh litres of milk on Wednesday.
"Some stocks of processed foods in our Mumbai godowns were also damaged due to flooding. We are taking stock of the damages,"GCMMF MD B M Vyas said.
Ahmedabad-based export-oriented chemicals manufacturer Meghmani Organics suffered losses as raw material stocks and exports consignments got either delayed on route or got stuck at Mumbai ports.
"Almost 30 per cent of the raw materials we used is imported from China. Some of our export consignments and imported raw materials are stuck at Mumbai ports. If we can���t deliver to customers on time, it means loss of prestige and future orders,"said Meghmani Organics CMD Jayanti Patel, Meghmani Organics, who has also lost out on a Japanese deal. "A team of prospective customers from Japan were to visit us this week but scared of TV images of an inundated Mumbai, they have decided to reschedule their visit," Patel added.
Manufacturers like General Motors India Limited too lost out on car sales as despatch was hit. "We lost sales of around 200 cars in the last two-three days as we despatch stocks on month ends.Further, car stocks at our Mumbai dealerships got submerged and we are assessing damages,"GMIL managing director Rajiv Chaba said.
Wednesday had witnessed several of the state���s 1000 plus ATMs and 5125 commercial bank branches remaining closed as connectivity snapped. However, the banks got back on the track on Thursday.
A key meeting of Russia���s Astrakhan region deputy minister of international co-operation O V Kolomin with Gujarat government and industry in Ahmedabad on Wednesday had to be cancelled. "Industrialists from 30 top Gujarat corporates were to meet him to explore business opportunities in the region,"a Gujarat Chamber of Commerce and Industry official said.