Royal Enfield to set up third plant in Tamil Nadu,India

Monday, Nov 24, 2014

Revving up the throttle on its expansion plans following 'huge' demand, premium motorcycle manufacturer Royal Enfield is looking at ramping up production at its two facilities besides setting up a third plant, a top official said.

The Eicher Motors' company has been witnessing huge demand for its products soon after launch of various models, including the 'Classic' range. To augment the expansion plans, the firm recently acquired land near here to set up another facility.

Royal Enfield currently has two manufacturing facilities one each at Tiruvottiyur and Oragadam in Tamil Nadu. For the proposed third manufacturing unit at Vallam Vadagal near Chennai, over 50 acre was acquired at a cost of Rs 57 crore.

"This plot is located within 10 km of our Oragadam facility. This prepares us for future expansion to meet growing demand of our motorcycles worldwide. We will in due course inform our plans and investments on the site", Eicher MotorsBSE 0.57 % MD and CEO Siddhartha Lal said. "Last year we produced just over 1.70 lakh motorcycles and this year (2014) we will be doing three lakh units. So we are talking about 70-75% increase in capacity from last year to this year," added Lal.