Royal Enfield To Witness Exit Of Key Management Personnel

Royal Enfield is witnessing a shakedown in its top management, after Chief Executive Officer Vinod Dasari stepped down from his position in August 2021. The company's COO B. Govindrajan has been appointed Executive Director to lead the company, and replace Dasari. Now, according to latest reports, the company will likely see a fresh round of exits from its senior management. According to reports, Lalit Malik, the Chief Commercial Officer of Royal Enfield has already put in his papers, and Shubhranshu Singh, Global Head of Marketing is already serving his notice period.

Also Read: Vinod Dasari Steps Down As Royal Enfield CEO

Royal Enfield has recently introduce the 2021 model of the Royal Enfield Classic 350, an all-new model of the company's bestselling product.

The resignations and shakedown in Royal Enfield's senior management comes at a crucial time when the brand is expanding in overseas markets, to grab leadership position in the mid-size motorcycle segment. With the launch of the Royal Enfield 650 Twins three years ago, Royal Enfield has been on the product offensive, and has recently launched the all-new Classic 350, built around an all-new platform with the J-Series engine also shared with the Meteor 350. The shakedown in the top management couldn't have come at a worse time, when multiple new products are being planned, with Royal Enfield planning to introduce a new product every quarter.

Also Read: Royal Enfield Volumes Decline By 9 Per Cent In August 2021

Last year, Royal Enfield launched the new Royal Enfield Meteor 350, built on an all-new platform, with the new J-Series engine.

In fact, other reports suggest that Royal Enfield has let go of nearly 100 employees as part of its annual performance review. The measures are being described as "right sizing" the workforce as part of the brand's Project Restore initiative. The initiative intends to attain a 25 per cent operating margin for the brand, and average sales volumes of 50,000 units a month. In August 2021, Royal Enfield reported a 9 per cent decline in monthly sales, with domestic sales slipping by 18 per cent. The only silver lining is the 164 per cent jump in exports, but overseas sales volumes are a meagre 6,790 units in August 2021, compared to domestic sales volumes of 39,070 units in the same month.

Also Read: Royal Enfield's Parent Company Eicher Motors Reports PAT Of Rs. 237 Crore In Q1 FY22

The coming months will be critical for Royal Enfield, as the brand struggles to find replacements for its senior management, and at the same time, go forward with its new product offensive, as well as stabilise sales volumes.