In 2017-18, the company plans to invest Rs 800 crores, largely towards capacity expansion at Vallam Vadagal, new products and platforms, and technical Centres in Leicester, UK and Chennai. This investment will be funded through internal accruals.
The construction of the facility started 15 months back and has been completed in record time. The new facility has been benchmarked to the highest level of quality and productivity. The capacity in this facility will enable the company to meet its next level of growth.
Royal Enfield's sales have grown at a compounded rate of over 55 per cent over the past 6 years. The order book continues to be strong and there is a large unmet demand.