Just the last day we released an article wherein Royal Enfield was struggling to supply the required amount of motorcycles to the consumers. Guess what, Royal Enfield is now planning a new production capacity in the state of Andhra Pradesh. If this production unit is started early, people may expect to get their bikes faster.

The motorcycle manufacturer is taking every step to get this plant set up at Andhra Pradesh quickly. The documents and the project is still in review with the A.P government. The talks with the A.P government are on. However, the incentives that the company’s going to get are still unknown.

Enfield is planning to set up their new production capacity in Sri City. Sri City is located in Satyavedu in Chittoor district located in A.P and is one of the new SEZ in the states. Needless to say that Enfield will get certain incentives if they set up their production capacity in SEZ. Royal Enfield is planning to carry out two phased operations wherein in the first phase the production capacity will be bought up to 1.5 lakh units per annum with a total investments of 150 crore. On the contrary, the second phase will begin after two years wherein the company will enhance the production capacity by another 1 lakh unit with investments of 100 crores. All in all, Royal Enfield will spend a total sum of 250 crores spread in to two phases.

This new capacity is a necessity for the Royal Enfield group as the company is under supply blues. The group has not been able to produce enough motorcycles and the demand-supply sync is lapsed. They currently have only one plant in Chennai with a production capacity of 39,000 units per annum. The company is also planning to invest 70 Crores for new tools and product development. One can hope to see new products from the group once this new facility at A.P comes up. We can only wait for the new plant capacity to come up and see if they also roll out new products or not.




RELATED STUFF