Royal Enfield To Set Up Third Plant in Chennai

Royal Enfield is gearing up to set up its third manufacturing facility in India. This is the company's second in the Oragadam Industrial corridor in Chennai. The new facility is just 10 km away from the second unit in Oragadam.

The company, which is owned by Eicher Motors, has purchased a 50 acre plot in Vallam Vadakkal and this unit will expand the company's capacity to 6 lakh units per year once it kick starts operations. Siddhartha Lal, Managing Director and CEO, Eicher Motors said that the proposed third plant will prepare the company for future expansion to meet the growing demand of their motorcycles worldwide.

There are already plans to expand the annual production capacity from 3 lakh units to 4 lakh units with the two plants (Thiruvottiyur and Oragadam) combined in 2015 and the third will expand this capacity to 6 lakhs.

Besides the production expansion, Royal Enfield is also working on expanding its dealer network to 500 in 2015.