Royal Enfield will invest to expand its three manufacturing facilities in Tamil Nadu.
Royal Enfield has a pact with the state government in Tamil Nadu and after investing over Rs. 1000 crores, the company is set to invest an additional Rs. 500 crores in TN and this amount will be used to expand the company’s three manufacturing facilities.
A Memorandum of Understanding has been signed between the state government and RE and according to that, Royal Enfield is required to invest a total sum of Rs. 1500 crores over a period of 5 years starting from May 2016. In return, the government will provide fiscal and monetary incentives to the company.
RE has three manufacturing facilities in Thiruvottiyur, Oragadam and Vallam Vadagal near Chennai and they manufacture 2-wheelers for the domestic and international markets. RE is also investing to set up a technology centre on the Old Mahabalipuram Road.
Earlier, RE had signed an MoU wherein they committed to invest Rs. 350 crores from 2011 to 2016 to set up the Oragadam manufacturing unit and the committed investments were completed before the investment period.
RE Tamil Nadu Investment
– RE has already invested Rs. 1000 crores as part of the MoU
– Additional Rs. 500 crores will be invested to expand plants
– Company is betting big on the new 650 twins