Royal Enfield Begins Commercial Production in its Chennai Manufacturing Plant
Royal Enfield Begins Commercial Production: Spread over 50 acres, the Vallam Vadagal plant will likely be Royal Enfield’s third production center and will fabricate Royal Enfield motorcycles for India and global markets.
According to the announcement, the facility starts with an installed generation capacity of 300,000 bikes per annum in the first stage. In 2017-18, the joint manufacturing capacity from all the three plants is intended to be 825,000 units. In 2016-17, Royal Enfield marketed and produced 667,135 motorcycles, nearing its capacity.
Royal Enfield acquired a 50-acre plot in Vallam Vadagal at October 2014 as the website for its third manufacturing facility. The facility’s building started 15 months ago and has been completed in record time, ” it said. The capacity in this facility will allow the company to fulfill its next level of expansion.
In 2017-18, the company plans to invest Rs 800 crore, chiefly towards potential expansion at Vallam Vadagal, new products and platforms, and technical Centres in Leicester, the UK, and Chennai, India. This investment will be financed through internal accruals, it included.