Royal Enfield To Invest INR 700 Crore As Capex For FY 2019-20
Royal Enfield Plans to produce 950,000 motorcycles in FY 2019-20. Assembly operations in Thailand to commence in H1 FY 2019-20
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Royal Enfield, a unit of Eicher Motors Ltd. (EML) announced its planned capital expenditure of INR 700 crore for FY 2019-20. The planned capex will include completion of the construction work of the Technology Centre, Phase-2 of the Vallam Vadagal plant in Tamil Nadu and towards the development of new platforms and products. Also, for 2019-20, Royal Enfield plans the production of 950,000 motorcycles.
Speaking on the company’s investment plans, Siddhartha Lal, MD & CEO, Eicher Motors Ltd. said, “The second phase of our Vallam Vadagal plant near Chennai, Tamil Nadu is progressing well and is expected to commence commercial production in the second half of this financial year. The construction of our Technology Centre in Chennai is also nearing its completion. With a wide distribution network in India, growing international presence and building state-of-the-art capabilities in product development, Royal Enfield is well on its way to grow the middleweight motorcycle segment globally in the coming years.”
In FY 2018-19, Royal Enfield announced the formation of its wholly-owned subsidiary in Thailand. To further strengthen its presence in the ASEAN region, Royal Enfield recently announced its upcoming assembly operations in Thailand, its first outside of India. With the upcoming assembly operations expected to come onstream in H1 FY2019-20 and plans to further expand dealer presence in the region, Royal Enfield is well poised to fill the gap in the mid-sized segment in the region.