New Delhi April 3 (UNI) Mid-sized motorcycles major Royal Enfield on Tuesday announced its planned capital expenditure (Capex) of Rs 800 crore for the year 2018-19.
The capex include the commencement of construction of Phase-2 of the Vallam Vadagal plant in Tamil Nadu this year.
Speaking on the company’s investment plans, Eicher Motors Ltd MD Siddhartha Lal said, “Our demand continues to exceed supply, and we continue to see strong growth from all our markets. Therefore, we have decided to expand our production capacity with the second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu.”
He said the company will also complete construction of its Technology Centre in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand its portfolio for global markets.
Royal Enfield’s unique and evocative motorcycles have found strong traction in the South East Asia region since entering the region two years ago. To further strengthen the brand and accelerate market development activities, Royal Enfield has decided to set up wholly owned subsidiaries in Indonesia and Thailand in 2018-19.
In 2018-19, with the first phase of the Vallam Vadagal factory enjoying its first full year of operations, and with productivity optimization at its Oragadam plant, Royal Enfield will have an annual production capacity of about 950,000 units.