Tata Electronics Under Fire: Show-Cause Notice Issued After Hosur Plant Fire

The Tamil Nadu government has taken action following a fire that broke out at a Tata Electronics unit in Hosur last month. The Directorate of Industrial Health and Safety (DISH) has issued a show-cause notice to the company, demanding an explanation for the incident within a week, unless an extension is requested. This notice, a standard procedure in such cases, was directed to both the factory’s designated ‘occupier’ and its manager, as required by the Factories Act. The ‘occupier’ is the individual responsible for overseeing the factory’s operations, ensuring worker safety, and maintaining compliance. For companies, this role can be assigned to a director.

The notice alleges that the fire originated due to a thermostat failure in the plant’s anodising section. This malfunction allowed the fire to spread rapidly through an air duct, causing significant damage. Tata Electronics has been instructed to provide its investigation findings, either corroborating the government’s assessment or presenting an alternative explanation based on its own inquiries.

Sources familiar with the investigation have revealed that DISH had previously determined the ‘most probable cause’ of the fire to be a thermostat malfunction in one of the anodising baths, which led to the destruction of the entire section. Tata Electronics’ management has been informed of these preliminary findings.

Adding another layer to the situation, Apple’s supplier responsibility (SR) team has been actively involved since September 29. Following the incident, they arrived at the facility to provide advice and guidance. Tata Electronics serves as Apple’s sole Indian contract manufacturer, and the incident occurred just a day before the SR team’s arrival.

While Tata Electronics has yet to publicly respond to the show-cause notice, the government’s investigation aims to understand the circumstances that led to the fire and ensure measures are taken to prevent future incidents. The company’s response is expected to provide further clarity on the matter. It remains to be seen whether Tata Electronics will align with the government’s conclusions or offer different insights from its own investigation.

This incident underscores the importance of robust industrial safety measures, especially in high-stakes manufacturing units involved in global supply chains. The authorities are now awaiting Tata Electronics’ response, hoping for a comprehensive understanding of the events leading to the fire.

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