Royal Enfield’s Second Manufacturing Unit near Chennai

Eicher Motor is all set to start constructing its second manufacturing unit in Oragadam, near Chennai. Tamil Nadu government has allotted 50 acres of land in the Oragadam SIPCOT for the company’s second manufacturing unit in the state.

Royal Enfield sets up its new unit near Chennai

The CEO of Eicher Motors told that this new plant will starts manufacturing by March 2013 which will reduce the waiting time for the bikes by the customers across the country. Currently the waiting period for this muscle bike of the country is 6 to 8 months.

The existing manufacturing unit in the state produces about 70,000 units a year which will be increased to about 1,50,000 units a year from this new plant. The CEO and Managing Director of Eicher Motors confirms that the expected investment in this new unit will be Rs. 350 crores where the entire manufacturing capabilities from the existing unit will be shifted phase by phase.

Existing unit will be utilised for developing and producing engines for bikes. When asked about the investment that the company is likely to make on the second plant, he declined to share details, saying, “We will have to take approvals from the board at first before telling any number.”

At present, top auto companies, including German luxury car-maker BMW, Korean auto major Hyundai and U.S. auto-maker Ford, have established plants in the city and its suburbs.