Royal Enfield Starts Building New Factory in India

Last time we heard about motorcycle manufacturer Royal Enfield Motors, it was approaching the 555 mantra, meaning it was close to achieving three targets, namely producing 5,000 bikes each month, posting a turnover of Rs 500 crore (about $100 million) and, finally, an operating profit of Rs 50 crore (about $10 million).

As things were going so well, expansion was necessary. But at the time, the manufacturer decided to keep the new location under wraps. But all the mystery has now faded away, as the company today announced it has begun construction of a new manufacturing facility to help the company meet worldwide demand for its motorcycles.

The new plant will spread across 50 acres in Chennai’s SIPCOT Industrial Growth Centre and is slated for completion by the first quarter of 2013. Once completed, the new plant will more than double Royal Enfield’s current capacity of 70,000 units per year to 150,000 units per year.

The new plant will be equipped to produce the full range of Royal Enfield motorcycles and allow the company to keep up with the brand’s rising popularity, both in the booming Indian domestic market and in fast-growing export markets like the United States.

“We’re very pleased with the growth we’ve seen in recent years. Royal Enfield has made incredible improvements to its product design and consumers in the U.S. and elsewhere are really beginning to take notice,” commented Kevin Mahoney, President of Royal Enfield USA. “Today’s announcement shows that Royal Enfield is very aware of its growing customer base and is committed to meeting the expectations of consumers around the world.”