Eicher Motors to invest Rs 600 crore this fiscal
Eicher Motors,
manufacturing the Royal Enfield, is all set to invest Rs 600 crore this fiscal
in a new plant, product development and in the R&D centre. The company also
said production capacity will touch 9,00,000 units by fiscal 2018 end.
Speaking to reporters at
the company's facility at Oragadam, near Chennai, Siddhartha Lal, managing
director and CEO, Eicher Motors, said by end of the current year, total capacity
will be around 6,75,000 units, which is more than two lakh units compared to
last year.
The first phase of
Vallam Vadagal facility, which will be 7 kms from the Oragadam facility, will
be ready by September 2017. This facility will take the company's total
capacity to 9,00,000 units.
Portion of the proposed
Rs 600-crore investment will go into the facility, while the balance will be
towards proposed new engineering centres at Chennai and the UK and for product
development.
Lal said the company
will be operating in 2 or 3 platforms, while there will be some delete and add.
The recent addition was
Himalayan platform. The company started rolling out products and is currently
selling around 1,000 units a month. The company hopes to increase it as the
product will be available across dealerships.
Lal said RE focus would
be 250-750cc and besides the Indian market, the company will focus on South
East Asia and Latin America.
Source: Eicher Motors to invest Rs 600 crore this fiscal