Royal Enfield to Open its Second Plant

Though owning a Royal Enfield is the dream of many, irrespective of the age group in which they are, the problem with the brand in most of its models is its long waiting period. The company has finally zeroed down the cause for these delays and should have concluded that opening up of a new plant is the only solution for this issue.

The Government of Tamilnadu has allotted land for the company’s new plant in Orragadam near Chennai in the SIPCOT industrial park out there. The company will be commencing its operations from its new plant by mid 2013. This new expansion plan of Royal Enfield would cost the manufacturer a sum of INR 350 Crores.

Commenting on this new plant, Mr. Siddhartha Lal, MD and CEO, Eicher Motors said, “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. With addition of new capacities, we will be able to reduce the waiting periods of our bikes. It is currently about 6-8 months. We will completely shift vehicle production in a phased manner to the new plant. Our plan is to utilise the old plant for developing and producing engines for the bikes. ”

The old plant of the company will be used for engine manufacturing as mentioned by Mr. Siddhartha in the interview. We had posted a write up a few months back that the company is likely to launch 2 new models by the end of next year or so. The new engine production plant will help the company in aiding the production of these retro machines.

This is a great move from the side of the company as this would increase the sales volume of the manufacturer considerably. Time for me to think (or I would rather prefer saying dream) of owning a Thunderbird again!

Regards,
M.Naren.
Author – BikeAdvice

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