Royal Enfield, the two-wheeler division of Eicher Motors, has announced to set-up a new manufacturing unit at Oragadam, near Chennai. The new facility, which is scheduled to become operational by March 2013, will be having a total capacity of 1.5 lakh units.
The new Royal Enfield facility will be spread over a land of 50 acres and the company is planning to invest Rs 350 crore in this facility over the period of next five years. The land was officially allotted to the company on Tuesday by state Chief Minister Jayalalita, at the Oragadam SIPCOT Industrial Park, near Chennai.
In a statement given to PTI, Eicher Motors Managing Director and CEO Siddhartha Lal 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." He added that company’s long-term strategy is to invest for the next five years under a mega project on the same site.
At present, Royal Enfield has single facility in Tamil Nadu, from where the company produces about 70,000 bikes a year. Once the new facility becomes operational, the company will shift its entire assembly line there
