Royal Enfield starts commercial production at its new facility near Chennai

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This new facility near Chennai will manufacture Royal Enfield motorcycles for India and global markets, the company said in a statement.

According to the statement, the facility starts with an installed production capacity of 300,000 motorcycles per annum in the first phase.

In the current fiscal year, Royal Enfield expects to manufacture 8,25,000 units of motorcycles, combined from their three plants in the area.

Spread over 50 acres, the plant is Royal Enfield's third manufacturing facility, and will produce motorcycles for domestic and worldwide markets.

The construction of the facility started 15 months back and has been completed in record time.

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The capacity in this facility will enable the company to meet its next level of growth.

In 2017-18, the company plans to invest Rs 800 crores, largely towards capacity expansion at Vallam Vadagal, new products and platforms, and technical Centres in Leicester, UK and Chennai. It will fund the investment through internal accruals.

With the new production plant, the waiting period of the Royal Enfield bikes is expected to go down.

Royal Enfield's sales have grown at a compounded rate of over 55% over the past six years. Royal Enfield motorcycles continue to be in demand despite growing competition, with large numbers of orders still awaiting completion.

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