Royal Enfield eyes expansion; buys 50 acres in Tamil Nadu.

Royal Enfield is planning to expand its production capacity at Chennai. The company has acquired a 50-acre plot, 10 km from the existing facility at Oragadam, near Chennai.

While the company did not disclose the proposed capex, total cost for acquiring 50 acre land was Rs. 57 crore.

'At Royal Enfield, we have set our sights on becoming the leaders in global mid-sized motorcycling segment and we are working towards it persistently. While we continue to ramp up capacity at our Oragadam plant month on month, we have recently acquired a 50-acre plot in Vallam Vadagal, near Chennai, Tamil Nadu. This plot is located within 10 km of our Oragadam facility. This prepares us for future expansion to meet the growing demand of our motorcycles worldwide,' Siddhartha Lal, managing director and chief executive officer, Eicher Motors, said.

Royal Enfield's current capacity from both plants - at Thiruvottiyur and Oragadam - will be 3,00,000 units for 2014. In 2015, the company intends to manufacture 4,00,000 units from these two plants.

Eventually, the two plants put together will be able to manufacture 6,00,000 units.


BS