Eicher Motors said on Tuesday its two-wheeler division Royal Enfield will set up a new manufacturing facility at Oragadam near Chennai, with an initial installed capacity of 1.5 lakh units per annum by March 2013. The proposed 50-acre facility is likely to see a total investment of up to Rs 350 crore over the next five years.
Chief minister J Jayalalithaa on Tuesday allotted land for construction of the plant at the Oragadam SIPCOT Industrial Park, on the outskirts of Chennai. “We have received the letter for the land from the state government. We will start construction immediately after getting the possession. We should be ready with the plant by the first quarter of 2013,” said Eicher Motors managing director and CEO Siddhartha Lal. He said the new facility would have an initial installed capacity of 1.5 lakh units per annum, which could be expanded later, depending upon the demand. “With addition of new capacities, we will be able to reduce the waiting periods of our bikes. It is currently about 6-8 months,” Lal said.
Following induction of the new plant, Royal Enfield will shift its entire vehicle assembly line here. At present, it has another facility in the state that produces 70,000 bikes every year. “We will completely shift vehicle production in a phased manner to the new plant. Our plan is to utilize the old plant for developing and producing engines for the bikes,” said Lal, adding that engine manufacturing capacity will also be increased to 1.5 lakh units annually from 70,000 units at present. “Our long-term strategy is to invest for the next five years under a mega project on the same site,” he said. This latest venture will ensure 900 direct and indirect employment opportunities.
Source: July 13, 2011, TOI
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