Royal Enfield is planning into a Rs 800 crore investment in the financial year 2017-18 on various processes, including product development and the new manufacturing plant in Chennai, PTI reported. "We will be investing Rs 800 crore in FY 2017-18 towards our upcoming manufacturing facility at Vallam Vadagal near Chennai, product development, two technical centres in UK and India and towards market expansion," Eicher Motors MD and CEO Siddhartha Lal said in a statement.
The Chennai plant is expected to be functional by August end, and would increase the combined production capacity to 8,25,000 units this fiscal. The fourth quarter of the last financial year saw the the company's best ever performance. It sold 1,78,345 motorcycles, posting a growth of 20.8% over 1,47,618 units sold in the same period the previous year.
The fourth quarter ended 31st March also witnessed the motorcycle manufacturer's highest ever quarterly income from operations at Rs 1,888 crore, which was a 23.2% growth compared to the same period last month.
"Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally," Lal said, adding: "We have also started exporting the Himalayan to various countries around the world, and have received a terrific response."
Royal Enfield now boasts of 25 exclusive stores in the international market. The brand has a huge following in India, with the Bullet 500 and Classic models being very well received in the country. The latest offering from the brand, the Himalayan, has also been doing fairly well in the market. The Classic 350 Redditch series was also added to Royal Enfield's India product line up in January.