Eicher Motors share price gained as much as 1.5 per cent on Tuesday after the company announced that it has resumed production of motorcycles in Thiruvottiyur and Oragadam on December 7. Earlier, due to heavy rains and floods in and around Chennai, both of Royal Enfield’s production facilities were shut since December 01, 2015.
At 10.59 am, the share price of Eicher Motors was up 0.82 per cent at Rs 16,361. The scrip opened at Rs 16,299.80 and had touched a high and low of Rs 16,476.95 and Rs 16,159.10, respectively, in trade so far. Sensex was down 68.33 points, or 0.27 per cent, at 25,457.78. For stock market updates click here.
Later, the scrip closed 0.14 per cent up at Rs 16,251. Sensex closed 0.86 per cent down at 25,310.33
In a BSE filing, Eicher Motors said, “The company resumed production of motorcycles on December 7, 2015. However, due to a high rate of absenteeism by the company’s employees, and issues with our local suppliers – it will be running at approximately 50 per cent capacity this week, and plan to be back up to 100 per cent capacity by next week.”
There is no damage to equipment or property and all of its employees are safe and secure. The company have had production loss of 7,200 motorcycles due to the closure of both Royal Enfield’s manufacturing facilities between December 1- 6, 2015.
“Many parts of the supply chain still continue to be affected due to the aftermath of floods. Due to the rains, in November it lost production of 4,000 motorcycles.,” the company said in a release.
Eicher Motors would be able to assess the insurance loss in due course, once the full normalcy is restored.