Royal Enfield To Invest Rs 8 bn in FY19, To Expand Production Capacity

The leading mid-sized motorcycles manufacturer, Royal Enfield has planned 8 billion capital infusion into the business in 2018-19. The capex includes construction of Phase-2 of the Vallam Vadagal plant in Tamil Nadu this year.

Siddhartha Lal, MD & CEO, Eicher Motors Ltd. said, “Demand continues to exceed supply, and the company is seeing strong growth from all the markets.”

“To meet the demand, the company has decided to expand its production capacity with the second phase of our Vallam Vadagal plant near Chennai,” he added.

The company will also complete construction of its technology centre in Chennai this year, investing further in the development of new products to meet upcoming regulations and to expand company's portfolio for the global markets, said Lal.

The bike maker has decided to set up wholly owned subsidiaries in Indonesia and Thailand in 2018-19.

“We continue to strengthen our offerings with new models and variants such as the new Thunderbird X, the Classic Gunmetal Grey, Stealth Black and Redditch series, as well as our soon-to-be-introduced Twins,” said Lal commenting on his business expansion plans.

With a wide distribution network in India, a growing international presence and capabilities in product development, Royal Enfield is well positioned to grow the middleweight motorcycle segment globally, added Lal.

In 2018-19, with the first phase of the Vallam Vadagal factory in its first full year of operations, and with productivity optimisation at its Oragadam plant, Royal Enfield will have an annual production capacity of about 950,000 units.