Royal Enfield
Mumbai: Royal Enfield on Monday announced its plan to set up a manufacturing facility in Andhra Pradesh at an investment of Rs 2,500 crore as part of its strategic expansion.
The Eicher Motors group company said it has already acquired a land parcel in the Tada industrial hub in the Tirupati district of Andhra Pradesh.
Subject to approval by the company's board, the project will be implemented in a phased manner, calibrated to future demand and market conditions, Royal Enfield said.
Also Read: ‘Bullet Raja’ Royal Enfield leaves Audi, Ferrari behind in global race, becomes world’s 3rd strongest auto brand
The Chennai-based motorcycle maker currently has a production capacity of around 14.6 lakh units per year, which is close to full utilisation, the company said.
In February this year, it announced a Rs 958-crore investment for capacity expansion in Cheyyar (Tamil Nadu), which will increase the total capacity to 20 lakh units.
The company currently operates four manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually, said B Govindarajan, Managing Director at Eicher Motors Ltd and CEO, Royal Enfield.
"This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth," he said.
Royal Enfield has already established over 100 retail and service outlets and more than 1,200 direct and indirect employment opportunities in Andhra Pradesh, he said.
As part of its long-term growth trajectory, Royal Enfield said it routinely evaluates options for future projects.
Also Read: Hero MotoCorp lines up Rs 1,500 crore capex for FY27 to double scooter production capacity
Apart from Tamil Nadu, the company has seven CKD facilities across six countries, including two in Brazil, and one each in Bangladesh, Nepal, Thailand, Argentina and Colombia, apart from two technical centres - one each in Bruntingthorpe (UK), and Chennai.
It operates through more than 3,200 stores across India and over 80 countries around the globe.
The Eicher Motors group company said it has already acquired a land parcel in the Tada industrial hub in the Tirupati district of Andhra Pradesh.
Subject to approval by the company's board, the project will be implemented in a phased manner, calibrated to future demand and market conditions, Royal Enfield said.
Also Read: ‘Bullet Raja’ Royal Enfield leaves Audi, Ferrari behind in global race, becomes world’s 3rd strongest auto brand
The Chennai-based motorcycle maker currently has a production capacity of around 14.6 lakh units per year, which is close to full utilisation, the company said.
In February this year, it announced a Rs 958-crore investment for capacity expansion in Cheyyar (Tamil Nadu), which will increase the total capacity to 20 lakh units.
The company currently operates four manufacturing facilities in Tamil Nadu, with a total projected capacity of 2 million units annually, said B Govindarajan, Managing Director at Eicher Motors Ltd and CEO, Royal Enfield.
"This investment in Andhra Pradesh will augment that capacity and provide the impetus for our next phase of growth," he said.
Royal Enfield has already established over 100 retail and service outlets and more than 1,200 direct and indirect employment opportunities in Andhra Pradesh, he said.
As part of its long-term growth trajectory, Royal Enfield said it routinely evaluates options for future projects.
Also Read: Hero MotoCorp lines up Rs 1,500 crore capex for FY27 to double scooter production capacity
Apart from Tamil Nadu, the company has seven CKD facilities across six countries, including two in Brazil, and one each in Bangladesh, Nepal, Thailand, Argentina and Colombia, apart from two technical centres - one each in Bruntingthorpe (UK), and Chennai.
It operates through more than 3,200 stores across India and over 80 countries around the globe.
