Royal Enfield to Increase its Production Capacity

Rudratej Singh, President, Royal Enfield, said, "To meet the growing demand, we have decided to ramp up our capacity to around 52,000 units by December from the present 36,500 units a month. We have also taken land for a third plant near the existing plants for Rs 70 crore, as we foresee the current phase of robust demand to continue."

This will allow the bikemaker to cut down the waiting period for its bikes - which is about 5 months on an average. The present installed annual capacity for the company is 4.5 lakh units - which it wants to increase to around 6.25 lakh per annum. However Singh clarified the current year's annual production year will be 450,000 units.

Royal Enfiel will also open 85 more sales and service network by December, thus taking its tally to 500. Out of this over 20 will be in Maharashtra, since the state is one of the largest markets for the brand. At present Royal Enfield has 55 stores, including 3 exclusive gear stores in Maharashtra.

The bikemaker's parent company Eicher Motors has an overall capex plan of around Rs 500 crore for the brand for this year. Siddharth Lal, managing director and chief executive, this planned investment will be used for product development, and setting up of two technology centres. Out of the 2 centres, one will be in Chennai and other in Leicestershire, Britain, and will be operational by the end of 2015.

For now, Royal Enfield makes bikes with engine capacities ranging from 346cc - 535cc. However, it is planning to enter more categories, both in the low and high ends in the 250cc to 750cc segments, according to media reports.

Word has it that the first all-new product will be an adventure tourer - the Himalayan.

(With inputs from PTI)