Whenever you hear the noise of ‘thad thad’ on streets, you know a Royal Enfield is nearby. Such an iconic bike it is! Bike that is synonymous to style and elite class in India and the world.
The company which was going to be bankrupt in 1994 is now the largest profitable automobile company in India today. Did any of you think that a 26-year-old boy would take the drowning company to this point?
In FY14, Eicher Motors earned over Rs 8,738 crore in revenues and made a net profit of Rs 702 crore of which Royal Enfield brought in about 80% of these profits.
In 2000, Siddhartha became the CEO of Royal Enfield, facing the daunting task of resurrecting a sinking ship.
Meet the bike enthusiast who transformed Royal Enfield from a struggling warrior to a roaring champion – Siddhartha Lal! Back in the early 2000s, Royal Enfield was gasping for air amidst fierce competition, with sleek and fuel-efficient bikes flooding the market. But along came Siddhartha Lal, the savior on two wheels.
Early life
Before the thrill of bikes took over, Siddhartha followed the footsteps of his father by attending The Doon School and later, the University of Delhi. But he wasn’t just into books – he craved the mechanics of life. He earned his stripes at Cranfield University and the University of Leeds, immersing himself in the art of mechanical and automotive engineering.
Not many of you might know that Royal Enfield’s parent company Eicher Motors had given 40% of profit to the investor for 5 years in the stock market. The question is, what did they do that Royal Enfield is the market leader today? Many people think that Royal Enfield is an Indian brand but it is not.
Siddhartha Lal takes the helm
When the baton was passed to Siddhartha Lal, the young and dynamic son of Vikram Lal, who shared the same passion for motorcycles, he channeled all his energy into resurrecting the brand, shutting down 13 out of 15 family businesses. With a fiery passion for bikes, he hopped onto Enfield motorcycles to experience their highs and lows firsthand
The visionary CEO of Eicher Motors, decided to throw his full weight behind Royal Enfield and the trucks business. Fast forward a decade, and Eicher Motors is raking in over Rs 8,738 crore in revenues, with a net profit of Rs 702 crore, with Royal Enfield contributing a whopping 80% of these profits.
The Thunderbird and Electra X were born, capturing the hearts of motorcycle enthusiasts across the country.
Ladakh trip
Siddhartha enjoys riding bikes and travelling to the mountains. He still hasn’t finished riding his bike to Leh and Ladakh, though. Due to abrupt weather changes, he made numerous attempts but was never able to arrive in Ladakh. Friends and coworkers refer to the previous five years of his failure to do so as the “Ladakh jinx.” In 2010, he was left trapped at Rumtse, a small village 85 kilometres from Leh at an elevation of 13,700 feet, despite being extremely near to reaching Ladakh. The desercity was cut off from the rest of the nation by a cloudburst. At the Gurgaon headquarters of Eicher Motors, panic broke out as his family and coworkers went days without hearing from him. In Siddhartha and his group were safely airlifted.
The birth of Royal Enfield bikes
While Indian Motorcycles shared its birth year with Royal Enfield, the latter has been manufacturing motorcycles continuously since then. From England to India, the iconic Bullet model in 350cc and 500cc has been produced, and the legacy continues with a growing range of models.
The history of Royal Enfield dates back to 1891 when Albert Eddie and Robert Smith established a needle manufacturing company called Eddie Manufacturing in England. However, destiny had more significant plans for them as they received an order to create bicycles for the Royal Arms factory. Thus, the bicycles they crafted were named Royal Enfield, marking the birth of a legendary brand.
Their journey took a surprising turn when they landed an order to create bicycles for the Royal Arms factory, leading to the birth of Royal Enfield. The trademark “Made Like A Gun” was introduced, marking the beginning of a legacy.
In 1901, Royal Enfield produced its first motorcycle, which featured a 239cc engine. Over the years, the company continued to innovate and improve its motorcycle designs.
During World War I, Royal Enfield motorcycles were extensively used by the British Army for dispatch and reconnaissance duties. The company’s association with the military continued during World War II, where it produced motorcycles for the armed forces.
Facing adversity: The struggling years
Royal Enfield’s motorcycles became so powerful that they even played a role in World War I. However, the demand dipped after the war, and by 1949, the company faced dire straits. And in 1949, K.R. Sundaram of Madras Motors had to take over the company as a last resort. However, destiny had other plans, and in 1994, the Eicher Group, led by Vikram Lal, acquired Enfield India, a company drowning in losses.
Breathing life into the legend: Siddhartha’s bold strategies
But it wasn’t just product changes that turned the tide. Siddharth Lal, a true motorcycling enthusiast, understood that he needed to change the perception people had of Royal Enfield. Behold, the power of behavioral design! Siddharth made it his mission to challenge the belief that Royal Enfield was merely a tourist bike. He lived the brand, became its ambassador, and urged everyone to “Be the Change.”
Strategy 1: Living the buyer’s life
Siddhartha knew that understanding the customer’s perspective was paramount. He embarked on mountain trips, uncovering critical flaws in the products, particularly the exorbitant maintenance costs due to faulty manufacturing.
Strategy 2: Behavioral design
To shift the perception of Royal Enfield as a tourist bike, Siddhartha strategized to position it as a practical daily ride. By altering consumer perceptions, he opened new doors of opportunity for the brand.
Strategy 3: Emotion over product
Royal Enfield was more than just a motorcycle; it was an emotion. Siddhartha created a profound sense of pride and belonging among enthusiasts, nurturing a powerful community around the brand.
Strategy 4: Revamping the heritage
Innovation without losing the essence of the brand became Siddhartha’s mantra. New models like “The Thunderbird” and “Electra X” were introduced, retaining the beloved thud-thud engine’s iconic vibrations.
Siddhartha Lal’s journey to success was a testament to his passion for motorcycles and unwavering determination. After completing his education, he ventured into the world of automobiles, working with MAN Nutzfahrzeuge AG. However, destiny had bigger plans for him, and in 1999, he joined the Eicher Group, where he would leave an indelible mark.
In the year 2000, at the young age of 26, Siddhartha Lal took the helm as the CEO of Royal Enfield. Armed with a vision to turn around the struggling unit’s losses, he set out on a thrilling journey of transformation. “Honestly, at age 26, it seemed a fun thing to do. I could eat, sleep, ride, and talk motorcycles,” he revealed in a candid interview.
For the next four years, Lal immersed himself in Royal Enfield’s headquarters in Chennai, introducing cost-cutting measures and elevating the product lineup. His relentless efforts aimed to breathe new life into the iconic brand and reignite the spark that had captivated the hearts of motorcycle enthusiasts.
The Unimaginable success: A new legacy unfolds
Siddhartha’s visionary leadership and customer-centric approach propelled Royal Enfield to new heights. From selling 25,000 motorcycles in 2005, the brand’s sales skyrocketed to an impressive 50,000 units by 2010. It wasn’t just a motorcycle anymore; it became a symbol of pride and passion for its dedicated community.
Net worth
According to Forbes, Vikram Lal and family boast a whopping net worth of USD 6.2 billion! As for Siddhartha, his treasure trove measures over Rs 37,000 crore. Eicher Motors keeps the engine running with almost 600,000 bikes sold in the year ending March 2022.
Royal Enfield’s breathtaking journey from the brink of bankruptcy to becoming India’s leading profitable automobile company is nothing short of a miracle. Siddhartha Lal’s audacious strategies, deep understanding of customers, and relentless passion for motorcycles rekindled the flame of this iconic brand, etching its name in history as a true legend.
