Royal Enfield to invest Rs 600 cr in new plant – Feedback

Royal Enfield (RE), motorcycle division of Eicher Motors, is to invest Rs 600 crore this financial year in a new manufacturing plant, in product development and research & development (R&D) centres.

Speaking to reporters at its Oragadam facility, 40 km from here, Siddhartha Lal, managing director of Eicher Motors, said by the end of this year, total capacity would be around 675,000 units, about 200,000 more from last year. The first phase of the Vallam Vadagal facility, seven km from the one at Oragadam, will be ready by September 2017. This will take the company’s total annual manufacturing capacity to 900,000 units. Asked if capacity expansion would bring down the waiting period, Lal said this had come down to three months, from a peak of 10-11 months. The company wishes to bring it down further, he said, while giving no numbers. A part of the proposed Rs 600 crore investment will go into the new facility. The balance will be for new engineering centres at Chennai and Britain, and for product development.

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