Owing to the rise of demand for the Royal Enfield bikes, all are aware that the company is facing high customer demand. But, it seems company is all set to make a difference.
Royal Enfield is in plans to set up a new manufacturing plant in Andhra Pradesh. The company has very explicitly mentioned all the necessities that the manufacturing plant would require, and the proposal is still under review by the Andhra government.
The company’s signature 350 and 500 series bikes are right now manufactured in their Tirivotriyur plant in Chennai, and want to increase the production substantially. As per us too, Royal Enfield needs to really gear up to increase production.
The company plans in making an investment of Rs 250 crore split over two phases. The Phase one will include a 2 year plan where the company will create the facility for manufacturing 1.5 lakh motorcycles with a markup of Rs 150 crore, while the expansions will be planned in phase 2.
Royal Enfield’s entry in Andhra Pradesh will definitely increase the brand value of the state, thus attracting many more meaningful investors. If this deal is signed by the government, Royal Enfield in turn will enjoy lots of special benefits that include subsidized power, reimbursements etc.
The proposed location is at Sri City in Chitoor district Andhra Pradesh.
The new plant is an absolute must for RE which is currently reeling under pressure to cater to the high demand for its motorcycles. Royal Enfield is currently producing its motorcycles at its Chennai plant, which has an installed capacity of close to 39,000 units per annum.
The more important news for the enthusiasts is that the investments will also include Rs. 70 crore for new product toolings, which will be meant for the development of new products. This means that the company will come out with new products once the new plant is functional.
Hope to see some hot new REs thumping on the road soon then…
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