Royal Enfield the maker of Bullet motorcycles will set up a new manufacturing facility at Oragadam, near Chennai, with an initial installed capacity of 1.5 lakh units per annum by March, 2013. The proposed 50-acre facility is likely to see a total investment of up to Rs 350 crore over the next five years.
“We have received the letter for the land from the state government. We will start construction immediately after getting the possession. We should be ready with the plant by the first quarter of 2013,” Eicher Motors Managing Director and CEO Siddhartha Lal said.
The new plant will help the company to meet the increased demand of the Classic 350 and 500. Addition of new capacities will able to reduce the waiting periods of the bikes which is currently about 6-8 months.
The new facility will have an initial installed capacity of 1.5 lakh units per annum, which could be expanded later. The company will also introduce new bikes by 2012-13.