Royal Enfield to set up technology centres in Chennai, UK

Will invest Rs 500 crore in 2015 towards product development, capex and other development areas

Royal Enfield is planning to set up two technology centres as part of its long-term strategy.

The company will spend around Rs 500 crore in 2015 towards product development, capex and other development areas, it said in a email response.

"With a view to become the leader in the global mid-sized motorcycling, Royal Enfield will build two new technology centers," it said.

The larger one will be at a 4.5-acre property the company acquired on Old Mahabalipuram Road, the IT corridor of Chennai. This plant will be operational by the second quarter of 2016. The smaller satellite center is being set up in Leicestershire, UK, and will be operational by the end of 2015.

"Our immediate business outlook is strong, and we are continuing to invest in all strategic areas for long term growth," said the company.

Royal Enfield plans to manufacture 450,000 units in 2015. While the company will have multiple new platforms, it will continue to focus on above 250 CC and sub 750 CC segments, said a company spokesperson.

Royal Enfield achieved its best ever sales of over 300,000 units last year, according to the spokesperson.

In 2013, the company inaugurated a new Rs 150-crore facility at Oragadam, near Chennai. Engines and the company's unique chrome-plating operations will continue to be manufactured here, it said. The current capacity of the plant is around 50,000 units a month.