Royal Enfield's new Chennai facility will commence production in 9 months

Royal Enfield has said that the first phase of its new plant in Chennai will go on stream in the next nine months. Once the facility starts running the company's total production capacity, across all its three plants, will go up to 9 lakh units.

By end of the current year, total capacity of Royal Enfield would be around 6,75,000 units, which is more than two lakh units compared to last year.

Siddhartha Lal, managing director and CEO, Eicher Motors Ltd said that by second quarter of 2017-18, first phase of the new facility will commence production. To start with, it will add 25,000-30,000 units a month to the existing capacity of the company.

While declining to disclose the investment in the new plant, Lal said that large portion of the Rs 600 crore (capex for 2016-17) will be for the new plant, while the balance amount would be used for setting up tech centres and product development. 

Once the new plant goes on stream, total production capacity will be increased to 9,00,000 units by end of Fiscal 2018.

The new plant is coming at Vallam Vadagal, around seven kms from the company's Oragadam facility, near Chennai.

Lal added, while the UK tech centre will be ready by end of the current fiscal, its Chennai tech centre will be ready by the end of 2017-18.

On new launches, the company may look at one big product next year and it will continue to introduce variants now and then.

The recent addition was Himalayan platform in the adventure category.

Lal said Royal Enfield's focus would be 250-750cc, besides the Indian market the company will focus on South East Asia and Latin America.

In future, larger growth will come from the emerging markets, where people are moving from commuter to leisure segment.