Royal Enfield has started commercial production at its new manufacturing facility at Vallam Vadagal near Chennai.
Spread over 50 acres, the Vallam Vadagal plant will be Royal Enfield's third manufacturing facility and will manufacture Royal Enfield motorcycles for India and international markets.
In 2017-18, the company plans to invest Rs 800 crores, largely towards capacity expansion at Vallam Vadagal, new products and platforms, and technical Centres in Leicester, UK and Chennai. This investment will be funded through internal accruals.
In 2017-18, the combined production capacity from all the three plants is planned to be 825,000 units. In 2016-17, Royal Enfield produced and sold 667,135 motorcycles, nearing its installed capacity.
In October 2014, Royal Enfield acquired a 50 acre plot in Vallam Vadagal, near Oragadam, one of the automobile hubs of Tamil Nadu, as the site for its third manufacturing facility.
The construction of the facility started 15 months back and has been completed in record time. The new facility has been benchmarked to the highest level of quality and productivity. The capacity in this facility will enable the company to meet its next level of growth.
Royal Enfield's sales have grown at a compounded rate of over 55 per cent over the past 6 years. The order book continues to be strong and there is a large unmet demand.