Royal Enfield has announced an investment of Rs. 700 crore as its planned capital expenditure for the financial year 2019-20. Furthermore, the company has also announced its plan to produce 950,000 motorcycles during the ongoing fiscal year. The Chennai-based two-wheeler manufacturer has said that the planned capital expenditure (CapEx) will go towards the development of new platforms and products and also the completion of the construction work of the Technology Centre, and the Phase-2 of the Vallam Vadagal plant in Tamil Nadu.
Talking about the company's investment plans, Siddhartha Lal, Managing Director and CEO, Eicher Motors, said, "This year Royal Enfield will focus on the upcoming transition to the BS-VI emission norms along with strengthening our product development capabilities and working towards new global platforms. The second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu is progressing well and is expected to commence commercial production in the second half of this financial year. The construction of our Technology Centre in Chennai is also nearing its completion. With a wide distribution network in India, growing international presence and building state-of-the-art capabilities in product development, Royal Enfield is well on its way to grow the middleweight motorcycle segment globally in the coming years."
Royal Enfield's planned CapEx will also go towards to the development of new platforms and products
Furthermore, the company has also announced appointing Vinod Dasari as the Chief Executive Officer of Royal Enfield. Dasari replaces Siddhartha Lal as the CEO, who will nonetheless retain his Managing Director post. Dasari will also join the Board of Eicher Motors Limited as an executive director with immediate effect. Prior to his new role at Royal Enfield, Vinod Dasari was the MD and CEO at Ashok Leyland since 2011. The company says that Siddhartha Lal will continue to support Vinod Dasari on product and brand related areas.
Early this year, the company also announced the formation of its new wholly-owned subsidiary in Thailand. The company is also building an assembly plant in Thailand, which will be the company first production facility outside of India. Royal Enfield has also confirmed that the upcoming assembly is likely to commence operations in H1 FY2019-20 and is currently planning to further expand dealer presence in the ASEAN region.
