Royal Enfield Plans To Ramp Up Capacity To 52,000 A Month By December

MUMBAI: Royal Enfield, the world's fastest growing premium bike-maker clipping at over 40 percent sales on an average every month since the beginning of this year, will be ramping up its capacity up to 52,000 a month by December, from the current capacity of 36,500 units.

The Chennai-based Eicher Motors-owned Royal Enfield, that makes the iconic Bullet brand of premium motorbikes, has grown over 45 percent in the first half of the calendar year and is hopeful of sustaining the present growth going forward.

"To meet the growing demand, we have decided to ramp up our capacity to around 52,000 units by December from the present 36,500 units a month. We have also taken land for a third plant near the existing plants for 70 crore, as we foresee the current phase of robust demand to continue," Royal Enfield President Rudratej Singh told PTI.

However, he said the annual production this year will be 450,000 units.

The move will reduce the long waiting period for the bikes which is around five months on an average as the frenetic demand for the bikes continue.

The present installed annual capacity for the company is 4.5 lakh units or 37,500 a month, which it wants to increase to 50,000-52,000 a month now or around 6.25 lakh per annum, Singh explained.

Singh said the company has been clipping at 50 percent annually since 2010.

He also said, to meet the growing demand, the company will be opening 85 more sales and service network by December taking its overall network to 500.

Out of this over 20 will be in Maharashtra alone, he said, adding the state is one of the largest markets for the 114-year brand.

The company sold 33,481 units in the state in the first half, up 37 percent over the same period last year.

It has 55 stores including, three exclusive gear stores in the state.

While in January this year its sales grew 43 percent, February saw demand growing at 49 percent.

In March and April it sold 42 percent more bikes over the previous year, while May and June its monthly sales roaring at 47.5 percent each, according to months sales figures released by the company.

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