Yes, Chennai is very good for business in terms of infrastructure, logistics, manpower and state support. It's only handicap is its hot weather.
In case of manufacturing it has a wide scope as most of the big names are present in the state. As such the business ecosystem is quite developed. With good infrastructure and logistics solutions you may also branch out to other vicinity within the state.
Hope this brief will help you and in case you are further interested a detailed overview could be drawn depending on the nature of business you have in mind