Royal Enfield’s 3rd Tamilnadu plant begins production

The Dollar Business Bureau

Bike maker Royal Enfield began its commercial production in its third plant in India at the industrial estate of Vallam Vadgal, near Chennai.

This facility near Chennai spanning over 50 acres, is the third one in Tamilnadu for the company. The bikes manufactured in this unit will cater to the domestic and international markets, a company press release said. With this the total production capacity of all the 3 plants in India could reach 8.25 lakh units in FY18 the release added.

In FY 17 Royal Enfield manufactured and sold 6,67,135 motorcycles, nearing its installed capacity.

According to the release, in 2017-18 the company has earmarked Rs 800 crore as investment for capacity expansion at Vallam Vadgal, new products and platforms, and technical centres in the UK, Leicester and Chennai. The funding for the investment is likely to be done through internal accruals.