Royal Enfield starts bike production at Vallum Vadagal; to have annual capacity of 3 lakh units

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Chennai | Published: August 29, 2017 7:55:14 AM

Bike maker Royal Enfield has said that it has started commercial production at its third plant in Vallam Vadagal near Chennai, which will have an annual production capacity of 300,000 units in the first phase.

Royal Enfield, Vallum Vadagal,  SIAM data,  Royal Enfield motorcycles, Chennai, royal enfield bike productionThe company had earlier said that by 2018, it will have an annual capacity of 900,000 units. (Reuters)

Bike maker Royal Enfield has said that it has started commercial production at its third plant in Vallam Vadagal near Chennai, which will have an annual production capacity of 300,000 units in the first phase. To meet the growing demand both in domestic as well abroad, the company will be investing Rs 800 crore during the fiscal to expand the production capacity at Vallam Vadagal facility further as well introduce a few new products, it said. The company had earlier said that by 2018, it will have an annual capacity of 900,000 units. According to SIAM data, in the first four months of current fiscal (April-July), the company reported a 24% growth to sell 256,417 units, including exports of 6,418 units (a growth of 19% over same period last fiscal).

A global leader in mid-size motorcycles, the company said that spread over 50 acres of land, the Vallam Vadagal plant will be Royal Enfield’s third manufacturing facility and will make Royal Enfield motorcycles for India and international markets. In FY18, the combined production capacity from all the three plants would be around 825,000 units. In FY17, Royal Enfield produced and sold 667,135 motorcycles, nearing its installed capacity.

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