Speculations were rife for quite some time where Royal Enfield would set up its second manufacturing plant. The opening of the second plant was always an eventuality, but where was the bigger question. Some people even talked about Andhra Pradesh as the next destination for the iconic motorcycle brand.
Now Royal Enfield has officially cleared the air. The company has announced that it indeed is going to expand its current production capacity owing to the growing demand for its motorcycles worldwide. The new plant is going to be situated at Chenai, Tamil Nadu only, from where the first plant of the company currently functions. The Tamil Nadu Government has allotted Royal Enfield land at the SIPCOT Industrial Growth Centre, Oragadam for building the new plant.
The proposed Royal Enfield plant, spread over 50 acres, is slated for completion by the first quarter of 2013. Once completed, the new plant will increase Royal Enfield’s current capacity of 70,000 units per annum to 1,50,000 units per annum. The new plant will be equipped to produce the entire product range of Royal Enfield motorcycles.
For Royal Enfield, expanding in Chennai comes with several advantages. Proximity to their existing plant in Tiruvotriyur will bring synergies for the supply chain as well for the existing human capital. RE also believes that Chennai’s growing importance in the global automotive industry combined with the effective auto-eco system at Oragadam will augment the company’s growth curve.
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