Royal Enfield Announces Rs 800 Crore Investment in Capex in FY 2018-19

The Chennai based manufacturer has announced the huge investment of Rs 800 crore as capital expenditure for the FY 2018-19. A big share of this amount will be used to setup brand’s Tamil Nadu based Vallam Vadgal unit’s Phase-2. Altogether, the company had a plan of completing its technology centre by this year.

Furthermore, a host of new products that are lined up to emerge this year will also be produced by this announced capex. They will strictly comply with the forthcoming BS-VI emission norms. The other things we can witness in the current financial year is the opening of brand’s subsidiaries in Indonesia and Thailand.

Last financial year has been a great success for the brand as with great sales figures the company registered a whooping growth in sales. The factor that has been supportive in gaining those magical figures were the absence of potent rivals in the segment. And, the brand’s major volume generator model the Royal Enfield Classic 350 added 70 percent share of total sales.

Moreover, this Chennai-based firm is developing a new 650cc parallel twin range which will consist of the Interceptor 650 and the Royal Enfield Continental GT 650. Both of these bigger displacement bikes will hit the Indian ground by the end of this year. As the mentioned models will be manufactured locally, they will attract an aggressive price sticker. Still, we can't expect the upcoming parallel twin 650 range as a volume generator as like brand’s other products. But surely, it will help the brand to stand firmly in the ever-evolving modern-retro segment.