Royal Enfield in April 2017 registered a 25 percent growth on year on year basis.
In a conversation with Economic Times, Mr Siddhartha Lal, CEO and Managing Director, Royal Enfield has revealed that the company will be investing INR 800 crore this financial year in business development. The fund will be used for the third manufacturing plant near Chennai, two R&D centres (UK and Chennai) and in new products.
Royal Enfield’s much talked about twin-cylinder mill is expected to be first seen in the Royal Enfield Continental GT 750 reported premiering this year. The product, which is part of RE's plan of one new motorcycle every year, will be playing a key role in Royal Enfield’s mid-term goals. The company aims to become the market leader in the global middleweight segment (250-750 cc).
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Mr Lal added that the immediate business outlook for Royal Enfield looks very positive. The company wants to continue towards achieving its goals ‘consistently, competitively and profitably’. Lal had earlier said that Royal Enfield was the most profitable motorcycle business in the world.
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The new manufacturing facility is located at Vallam Vadagal in Tamil Nadu and will raise Royal Enfield’s annual capacity to 825,000 units by the end of the financial year 2017-18. This will be a 24 percent gain in capacity on a year on year basis. The company aims to make their third plant operational by August 2017, ahead of schedule.
Royal Enfield in April 2017 sold 58,564 and in comparison, its volumes in the same month last year stood at 47,073 motorcycles.
[Source: Economic Times]