Royal Enfield has announced its planned capital expenditure of INR 800 crore for the year 2018-19. The capex announced will include the commencement of construction of Phase-2 of the Vallam Vadagal plant in Tamil Nadu this year.
Speaking on the company’s investment plans, Siddhartha Lal, MD & CEO, Eicher Motors Ltd. said that the demand continues to exceed supply, and the Company continues to see strong growth from all markets. Therefore, Royal Enfield has decided to expand its production capacity with the second phase of the Vallam Vadagal plant near Chennai, Tamil Nadu. Lal further added that the brand will also complete construction of its Technology Centre in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand its portfolio for the global markets.
To further strengthen the brand and accelerate market development activities, Royal Enfield has decided to set up wholly owned subsidiaries in Indonesia and Thailand in 2018-19.
Speaking about the product strategy and plans for the international markets, Lal said that the brand continues to strengthen its offerings with new models and variants such as the new Thunderbird X, the Classic Gunmetal Grey, Stealth Black and Redditch series, as well as our soon-to-be-introduced Twins. With a wide distribution network in India, a growing international presence and state-of-the-art capabilities in product development, Royal Enfield is well positioned to grow the middleweight motorcycle segment globally.
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