The plant spread over 50 acres is the company's third manufacturing facility and will manufacture Royal Enfield motorcycles for India and international markets, the company said in a statement.
With the new plant coming onstream, the total production capacity from all the three plants is planned to be 8.25 lakh units in FY18, it added.
The company's other two plants are also located in Chennai.
In FY17, Royal Enfield produced and sold 6,67,135 motorcycles, nearing its installed capacity.
The company has earmarked Rs 800 crore investment in 2017-18 mainly on capacity expansion at Vallam Vadagal, new products and platforms, and technical centres in the UK, Leicester and Chennai.
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