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Royal Enfield commences production at 3rd facility in India

Royal Enfield

Heavy motorcycle maker Royal Enfield commenced commercial production at its new manufacturing facility at near Chennai.

Located in Vallam Vadagal, the new plant is spread over 50 acres and it is the company’s third production plant. It manufacture motorcycles for India and international markets.

In the financial year 2017-18, the combined production capacity from all the three facilities is planned to be 825,000 units.  Royal Enfield produced and sold 667,135 motorcycles In the fiscal 2016-17, nearing its installed capacity.

In October 2014, the motorcycle maker acquired a 50 acre plot in Vallam Vadagal as the site for its third manufacturing facility.

The construction of the facility commenced 15 months ago and has been completed as scheduled. The company said this facility will enable the company to meet its next level of growth.

The sales of Royal Enfield grew at a compounded rate of over 55 percent over the past six years.  In the fiscal 2017-18, the motorcycle leader plans to invest Rs 800 crore, largely towards capacity expansion at Vallam Vadagal, new products and platforms, and  technical Centres in Leicester, UK and Chennai, India. This investment will be funded through internal accruals.

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