Home >Industry >Manufacturing >Royal Enfield lines up Rs800 crore capex for current fiscal
Royal Enfield will also form wholly owned subsidiaries in Indonesia and Thailand in FY19. Photo: Hemant Mishra/Mint
Royal Enfield will also form wholly owned subsidiaries in Indonesia and Thailand in FY19. Photo: Hemant Mishra/Mint

Royal Enfield lines up Rs800 crore capex for current fiscal

Eicher Motors has decided to expand its production capacity with the second phase of Vallam Vadagal plant near Chennai

New Delhi: Royal Enfield on Tuesday said it will invest Rs800 crore in FY19 as capital expenditure (capex) and is starting work on the second phase of its Vallam Vadagal plant in Tamil Nadu.

Royal Enfield will also form wholly owned subsidiaries in Indonesia and Thailand in FY19.

After the second phase of the Tamil Nadu plant is complete, Royal Enfield’s total capacity in India would be 950,000 units per year.

According to Siddhartha Lal, chief executive and managing director of Royal Enfield parent Eicher Motors Ltd, demand for the company’s products continues to exceed supply, and the motorcycle brand continues to see strong growth from all the markets.

“Therefore, we have decided to expand our production capacity with the second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu. We will also complete construction of our technology centre in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand our portfolio for our global markets." said Lal in a statement.

In FY18, Royal Enfield, saw 23% increase in sales to 801,230 units in the domestic market while sales in the international market rose by 25% to 19,262 units.

“We continue to strengthen our offerings with new models and variants such as the new Thunderbird X, the Classic Gunmetal Grey, Stealth Black and Redditch series, as well as our soon-to-be-introduced Twins," said Lal.

“Twins" refers to Royal Enfield’s upcoming 650cc twin-cylinder motorcycles—the Interceptor and Continental GT.

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