Royal Enfield plans third plant to double production capacity

Last year, we had reported that Royal Enfield had purchased land to set up a new manufacturing plant (click here to read report). This plant is expected to come up in Vallam Vadagal near Oragadam, Tamil Nadu.

The new factory will be built on 50 acres of land have been purchased by Royal Enfield for Rs. 57 crore. The construction of the plant will start next year. The company aims to double its production capacity to 9,00,000 units per annum from the current 4.5 lakh units by 2018.

At present, Royal Enfield has two manufacturing facilities - one in Thiruvottiyur and one in Oragadam. The demand for the company's products rising and there is a waiting period for them. In the period January-October 2015, Royal Enfield's sales stood at 364,178 units. In the same period last year, the company sold 2.40,993 units.

The company has already increased the capacity of its Oragadum plant to try and reduce the waiting period. The third plant will help immensely in catering to domestic and international markets.

Royal Enfield is working on two new platforms. While the product on the first platform will be launched in 2016, a product on the second one will be launched in 2017.

Source: ET Auto