Production commences at Royal Enfield's 3rd factory

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Royal Enfield has commenced production at their new manufacturing facility in Vallam Vadagal near Chennai. This is the brand's third factory which is spread over an area of 50 acres. The land for the factory was acquired back in October 2014 and the construction was completed in a record time of 15 months. 

The company also confirmed that it is planning to invest Rs. 800 crores mostly towards the expansion of the Vallam Vadagal unit. The fresh investment will also benefit its technical centres in the UK and India and will aid the development of new products and platforms.

The plant will be serving the domestic as well as the export market. This new facility has an installed production capacity of 3 lakh units per annum in the first phase. Eventually, the combined production capacity from all the three manufacturing facilities is planned to reach 8,25,000 units during the current financial year (FY 2017-18).

During the previous financial year (FY 2016-17) Royal Enfield's factories were running at almost full capacity. The company sold 6,67,135 units during this period.