Royal Enfield,the two-wheeler division of Eicher Motors plans to set up a new manufacturing plant at Oragadam near Chennai by 2013.This plan has been declared yesterday by Eicher Motors.The upcoming plant of Royal Enfield will have an initial production capacity of 1.5 lakh units annually.
Siddhartha Lal,Managing Director and CEO of Eicher Motors revealed that they have received the letter for the land from the state government.They will start construction immediately after getting the possession.They should be ready with the plant by the first quarter of 2013.He said that with addition of new capacities, they will be able to reduce the waiting periods of their bikes which is currently about 6-8 months.
Regarding investment details he said that they will have to take approvals from the board at first before telling any number.He further informed that their long-term strategy is to invest for the next five years under a mega project on the same site.On product development, Lal said that they are constantly working on new products and will introduce two new products in 2012-13.There will be no new bikes in this year.
The latest venture from the company will ensure 900 direct and indirect employment opportunities.