New Delhi: Motorcycles manufacturer Royal Enfield on Tuesday said that it has planned a capital expenditure (capex) of Rs 800 crore for 2018-19.
According to the company, the capex announced will include the commencement of construction of phase-2 of the Vallam Vadagal plant in Tamil Nadu this year.
On the company’s investment plans, Siddhartha Lal, MD and CEO, Eicher Motors 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.
“We will also complete construction of our technology centre in Chennai this year, and invest further in the development of new products to meet upcoming regulations and to expand our portfolio for our global markets.”
The company further said that in 2018-19, with the first phase of the Vallam Vadagal factory “enjoying its first full year of operations, and with productivity optimisation at its Oragadam plant, Royal Enfield will have an annual production capacity of about 950,000 units”.
Besides, the mid-sized motorcycles manufacturer said that it has decided to set up wholly owned subsidiaries in Indonesia and Thailand in 2018-19.
IANS