Wednesday, November 17, 2010

Royal Enfield planning to set up a plant to augment its production

Royal Enfield, the iconic motorcycle brand has been one of the oldest playerin the two-wheeler segment in India. The motorcycle enthusiasts who were excited by the new offerings by the company like the Classic 500cc and 350cc and also the new Twinspark Thunderbird had to wait for months. That should end soon if the Royal Enfield’s parent company Eicher Motors has its way. Eicher Motors has stated that it plans to set up a new facility to augment production capacity to up to 10,000 motorcycles per month over the next few years, according to agency reports. The report quoted Eicher Motors managing director and CEO Sidhartha Lal saying "We will be continuously looking to ramp up the capacity, even up to 10,000 units to meet excess demand, for which we are looking at options of setting up a new manufacturing location."
According to him, the company produced 4,000 units on average every month last quarter, far lower than the design capacity of 5,000 units, due to internal constraints at its Chennai facility. "Very soon, we will be back to the 5,000 units per month mark and by next year, we will be reaching the 6,000 units per month mark," Lal said in the report. But the company is yet to zero-in on a location to set up the new facility nor the investment requirement of the project.

No comments:

Post a Comment