Royal Enfield has acquired a 50 acre plot to expand its production capacity at Chennai. The plant is 10 km from the existing facility at Oragadam, Tamil Nadu.
The estimated cost of the 50 acre of land is Rs 57 crore.
The current capacity of Royal Enfield’s plants at Thiruvottiyur and Oragadam will be 3,00,000 units in 2014. In 2015, the company aims to augment the manufacturing capacity to 4,00,000 units from these two plants. It is projected that the two plants will be able to manufacture 6,00,000 units.
By mid next year, the second phase of expansion is expected to be completed and will have an installed capacity of 6,00,000 units per year.
Royal Enfield’s first product was rolled out in 2013 from its new Rs 150 crore unit at Oragadam, near its old factory in Chennai.
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