Royal Enfield will be investing in two new technological centres and will be expanding its production capacity to 4.5 lakh units per annum.
With clockwork growth and overwhelming sales, Royal Enfield is surely moving in the right direction as it plans to capture developed markets in the future to come. Meanwhile, the legendary two-wheeler maker will be working on improving the technical niggles on its motorcycles and also plans to increase the production capacity to meet the ever-growing demand. In a recent statement, Eicher MD and CEO Siddhartha Lal said that Royal Enfield will be investing a total of Rs. 500 crores in 2015 towards product development, capex and other development areas while taking its total installed capacity to 4.5 lakh units per annum.
Royal Enfield will be opening two new technology centres with one located in Chennai and the other in the UK. The Chennai facility will be located on the recently acquired 4.5 acre property on Old Mahabalipuram Road in the city and will be operational in the second half of 2016. The UK-based satellite centre though will be relatively smaller and is being set-up in Leicestershire with operations set to commence by the end of 2015. Royal Enfield states that these new technology centres hold high significance and will enhance the manufacturer’s capabilities to execute long term strategies.
Coming to production capacity, Royal Enfield is expanding its manufacturing set-up at the Chennai facility from the current 4 lakh units to 4.5 lakh units. The company achieved a sales record of 3 lakh units in the previous year and the bike maker is affirmative that the additional capacity is needed to address the growing demand domestically and overseas as well. In addition, Royal Enfield is also planning the Himalayan adventure bike with the name recently registered in Europe and the same will help the company increase its sales further. The manufacturer wants to dominate the middleweight 300-500cc space with its products globally as part of its long-term strategy.
Source – EconomicTimes.com