Royal Enfield to Open Second Manufacturing Plant at Oragadam by 2013
In spite of the slowing down car market in India, the two wheeler market has managed to do fairly well, with many manufacturers posting record breaking sales. One such company is Royal Enfield, who has facing huge demand for their bikes ever since they launched in India. To keep with the growing demand and bring down the waiting period, the two wheeler manufacturer will be opening a new manufacturing plant at Oragadam close to Chennai.
This plant will initially have an annual manufacturing capacity of 1.5 lakh models by March 2013. The proposed facility spread over 50 acres will see an investment of INR 350 crores over a period of five years.
The CEO and MD of Eicher Motors, Siddhartha Lal, was quoted as saying that they have received a due letter for the site from the government of Tamil Nadu. They will begin construction as soon as they get possession of the land, saying that the facility would be ready by 2013′s first quarter. Once the facility will be operational, they will completely shift their production capacity from their current facilities to the new one.
As of now, their current plant has an annual production capacity of around 70,000 units, which will be extended to 1.5 lakh units per annum. He added that the state of Tamil Nadu had a more conducive environment, with facilities that are meant to be used for industrial development.
This prompted the company to open new facilities. According to an official statement made by the government of Tamil Nadu, the company seeks to further increase their operations with an investment of INR 350 crores.
The new plant will help consumers of Royal Enfield bikes; get them in a shorter period of time. The present waiting period ranges between 6 to 8 months. With the opening of their new plant in Oragadam, the company will also provide indirect and direct employment opportunities to around 900 individuals.