After roping in Pierre Terblanche, the celebrated ex-Ducati designer, Royal Enfield has now acquired a 50 acre plot at an investment of Rs.57 crore at Vallam Vadakal near Chennai to set up a brand new manufacturing plant. The upcoming unit will be the Eicher Motors owned manufacturer’s third factory in and around Chennai itself, apart from India, and second one at the Oragadam industrial belt.
Buoyed by it’s recent success, Royal Enfield is also ramping up the production capacity from 3 lakh units to 4 lakh units in 2015 and 6 lakh units in the subsequent year. RE reported a 47.45 per cent increase in its total sales in October 2014 at 26,039 units as compared to 17,659 units in the same month last year. Domestic sales have also increased by 47.4 per cent at 25,510 units last month as against 17,306 units in October 2013, the company said in a statement. Exports during the month stood at 529 units as against 353 units last year, up 49.85 per cent.
The proposal for a new plant is a part of its domestic/exports expansion strategy. As a part of this strategy, it will also bolster its dealer network to about 400 outlets by the end of 2014, and 500 outlets by 2015.
Source: The Hindu