Royal Enfield has announced a huge investment of INR 700 crore for financial year 2019-20 as the capital expenditure. As planned, this amount will be spend on the production of 950,000 motorcycles this fiscal. Along with it, the company will develop new platforms, products and complete the construction of the Technology Centre. Other than this, the Phase-2 of the Vallam Vadagal plant in Tamil Nadu will also be completed.
Revealing company’s plans of investing money, Siddhartha Lal, Managing Director and CEO, Eicher Motors, said, "This year Royal Enfield will focus on the upcoming transition to the BS-VI emission norms along with strengthening our product development capabilities and working towards new global platforms. 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."
Moreover, the Royal Enfield will also see a new face as the Chief Executive Officer in near future. As confirmed, Vinod Dasari, who has been the MD and CEO at Ashok Leyland since 2011 will replace the existing CEO, Siddhartha Lal. However, he will continue his Managing Director post. Along with, he will support Vinod Dasari on product and brand related areas.
While the company has already announced the establishment of a new wholly-owned subsidiary in Thailand, earlier this year. Besides this, there will also be an assembly line that will be Royal Enfield’s first unit outside India. As the company claims, the facility will be operational in H1 FY2019-20 while as of now, it is focused on expanding its presence in the ASEAN region.