ROYAL ENFIELD PLANS TO EXPAND MANUFACTURING CAPACITY AND SET-UP TWO RESEARCH AND DEVELOPMENT CENTRES WITH THE PROPOSED INVESTMENT OF RS. 600 CRORE FROM EICHER.
Royal Enfield is entering the new financial year with its pockets full. The Indian manufacturer is supposed to receive Rs. 600 crore from its parent-company, Eicher Motors. With the proposed investment, the manufacturer is planning to expand its manufacturing facility and set up all-new R&D centres in India and the UK. The sum will further assist the company in achieving its goal of becoming a leader in the global mid-size motorcycle market.
The two research and development centres will be based out of Leicestershire, UK, and Chennai, India. These centres will support Royal Enfield in developing advanced world-class products for the established and developed markets. On the other hand, expansion of manufacturing facilities will help them increase their reach across the world as well as in reduction of the waiting period in India.
Talking about the future investment plans, Siddhartha Lal, Managing Director & CEO, Eicher Motors said, “Royal Enfield has been investing in building strong foundations across all areas of its business. We will be investing Rs 600 crore towards product development, setting up of the two technical centres, in Leicestershire, UK and Chennai, India, enhancing our manufacturing capacity and market development activities across geographies.”
“Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally,” he further added.
Siddhartha Lal also said that the UK R&D centre is already under development and will be operational by the second half of 2016-17. However, the Chennai centre will take another year and will be set up by 2017-18. Besides that, the company aims to increase its production capacity by thirty two per cent with the expansion. During 2015-16, RE delivered 5,11,611 motorcycles, and now it is targeting to roll out 6,75,000 units in 2016-17.
Royal Enfield also has plans to expand its reach in India with 145 new dealerships, bringing up the count to more than 500 authorised stores across the country. Going a step further than just selling motorcycles, these stores will also offer a range of Royal Enfield apparel and accessories as well.