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Royal Enfield to set up 2nd plant near Chennai by 2013

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  • Royal Enfield to set up 2nd plant near Chennai by 2013

    Royal Enfield to set up 2nd plant near Chennai by 2013

    CHENNAI: Eicher Motors today said its two-wheeler division, Royal Enfield, will set up a new manufacturing facility at Oragadam, near Chennai, with an initial installed capacity of 1.5 lakh units per annum by March, 2013.

    The proposed 50-acre facility is likely to see a total investment of up to Rs 350 crore over the next five years.

    Tamil Nadu Chief Minister Jayalalithaa today officially allotted land for construction of the plant at the Oragadam SIPCOT Industrial Park, near Chennai.

    "We have received the letter for the land from the state government. We will start construction immediately after getting the possession. We should be ready with the plant by the first quarter of 2013," Eicher Motors Managing Director and CEO Siddhartha Lal told PTI.

    He said the new facility will have an initial installed capacity of 1.5 lakh units per annum, which could be expanded later, depending upon demand.

    "With addition of new capacities, we will be able to reduce the waiting periods of our bikes. It is currently about 6-8 months," Lal said.

    Following operationalisation of the new plant, Royal Enfield will shift its entire vehicle assembly line here. At present, it has another facility in the state that produces 70,000 bikes every year.

    "We will completely shift vehicle production in a phased manner to the new plant. Our plan is to utilise the old plant for developing and producing engines for the bikes," Lal said, adding that engine manufacturing capacity will also be increased to 1.5 lakh units annually from 70,000 units at present.

    When asked about the investment that the company is likely to make on the second plant, he declined to share details, saying, "We will have to take approvals from the board at first before telling any number."

    "Our long-term strategy is to invest for the next five years under a mega project on the same site," he said.

    However, an official statement from the Tamil Nadu government said the company had proposed to expand operations at a cost of Rs 350 crore.

    Eicher Motors decided to set up its operations in the state, considering the "infrastructure facilities and conducive (business) atmosphere," the official statement said.

    It further said the latest venture from the company will ensure 900 direct and indirect employment opportunities.

    On product development, Lal said: "We are constantly working on new products. We will introduce two new products in 2012-13. There will be no new bikes in this year."

    Talking about sales of Royal Enfield, he said the company expects to sell 70,000 units in 2011-12, compared to 53,000 units last fiscal.


    Source: Royal Enfield to set up 2nd plant near Chennai by 2013 - The Economic Times

    --

    You might be thinking that you heard this news before. But it has more details now. The earlier investment figure was quoted to be around Rs. 65 crore, but not anymore.
    The earlier news was to expand the Chennai plant, but this is a second plant altogether. This should help them consolidate their efforts, form strategies, allocate manpower for both the plants and avoid resistance to change, as the plant is near Chennai, the existing plant location. Let's hope they churn up some supply numbers.
    ---
    Brotherhood, Rules, Freedom. Xbhp.
    Indian riding = Alertness, Anticipation and Adjustment.

  • #2
    News approved
    Happiness is finding you have another Gear left....

    Join xBhp On

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    • #3
      good news, indian harley is gearing up for tough competition.
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      • #4
        Originally posted by princesirohi View Post
        good news, indian harley is gearing up for tough competition.
        Yeah, they've been on fire recently. First was the Chennai plant expansion. Second news being the launch of riding gears. Third big news was this, a brand new plant.

        As the 4th news, although there has been no official word from the Chennai based bike maker about the development, it seems Royal Enfield has launched an overhauled site.

        Welcome to Royal Enfield Motorcycles | Motorcycle India

        The new site is much cleaner, more stylish, better organized and more navigable. The whole layout is much more simplified with clearly marked sections which are positioned and designed intuitively.

        The new website focuses on visuals, with big pictures of the brand’s models and community activities taking the center stage. The menu bar and footer surrounding this pictures guide you through various sections such as motorcycles models, a community ride calender, a Bulletin Board, company history and credentials and contact info.

        You can also sign up for a newsletter, or book a test ride. Delving deeper into the site open up more sections, but all of them are neatly arranged.

        Bulleteers, time to rejoice!
        ---
        Brotherhood, Rules, Freedom. Xbhp.
        Indian riding = Alertness, Anticipation and Adjustment.

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        • #5
          Indian Harley!!! You called RE to be Indian Harley!!! Hmm...that may not be even a closest statement.

          Did you notice the words Indian & Harley, both of them are two iconic brands by themselves.

          RE, is just another iconic brand & let's accept the fact that it is a brand on its own
          Skill is what keeps you on a Motorcycle
          Awareness + Skill is what keeps you out of harm's way
          ATGATT + Awareness + Skill means you might Live To Ride another day

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          • #6
            Hope they launch new models soon..........
            Don't Honk Unnecessarily

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            • #7
              RE is bringing the chrome Classic 500. read it just a while back in Motoroids.


              Abhishek
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              • #8
                now they will be able to cut off the huge waiting period on their bikes.
                .................................................

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