Royal Enfield on Tuesday said that it has resumed production from Monday at its facilities in Thiruvottiyur and Oragadam near Chennai, which were closed due to heavy rains and floods.
The company further said that due to a high rate of absenteeism of the employees and issues with local suppliers, it will be running at approximately 50 per cent capacity this week, and plans to be back up to 100 per cent capacity by next week.
“Due to heavy rains and flooding in Chennai, both of Royal Enfield’s production facilities in Thiruvottiyur and Oragadam were shut since December 1, 2015. We resumed production of motorcycles on December 7, 2015, ” the company said in a press statement.
Royal Enfield added that prima facie, there is no damage to equipment or property and all its employees are safe and secure. However, it faced production loss over 11,200 units – 7200 motorcycles due to the closure of both manufacturing facilities between December 1- 6 and the company witnessed production loss of 4000 motorcycles in November due to heavy rains.
Many parts of the supply chain still continue to be affected due to the aftermath of floods.
“We continue to monitor the situation closely and work in the best interest of all our stakeholders. We would be able to assess the insurance loss in due course, once the full normalcy is restored, ” the company said.