New Delhi: Niche bike maker Royal Enfield plans to invest Rs. 800 crore during this fiscal on various activities including its upcoming manufacturing facility near Chennai and new product development.
“We will be investing Rs. 800 crore in FY 2017-18 towards our upcoming manufacturing facility at Vallam Vadagal near Chennai, product development, two technical centres in UK and India and towards market expansion,” Eicher Motors MD and CEO Siddhartha Lal said in a statement.
Royal Enfield is a part of Lal led Eicher Motors.The new plant is expected to be operational by August
2017 taking the combined capacity of Royal Enfield to 8,25,000 motorcycles in 2017-18.
During the fourth quarter of the last fiscal, Royal Enfield posted its best ever performance. It sold 1,78,345 motorcycles, posting a growth of 20.8 per cent over 1,47,618 motorcycles sold in the same period last year.
The two wheeler maker also posted its highest ever quarterly income from operations at Rs. 1,888 crore for the fourth quarter ended March 31, a growth of 23.2 per cent over the corresponding period last year.
On future outlook, Lal said: “Our immediate business outlook remains strong and Royal Enfield continues to grow consistently, competitively and profitably towards leading and expanding the mid-sized motorcycle segment globally.”
He added that the Himalayan model has been well received in India.
“We have also started exporting the Himalayan to various countries around the world, and have received a terrific response,” Lal said.
Royal Enfield now has 25 exclusive stores in international markets, he added.
PTI