Royal Enfield Chennai Plants Start Normal Operations After Floods

After the disruption in Royal Enfield production due to floods in Chennai and surrounding areas, it has resumed normal operations on December 14 at its plants in Thiruvottiyur and Oragadam. The company lost production of 11,200 units at these two facilities as they were down for a week since December 1 and were running on 50% capacity for the last week. The company is also planning to set up another plant in Chennai besides its two functional plants in the region. The construction of its new facility at Vallam Vadagal, near Chennai, will start soon.

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Eicher Motors said in a regulatory filing, "As of Monday, December 14, we are back to normal at our plants, and are running at 100 percent of our installed capacity at Royal Enfield. Over the course of the last week, our production rates improved steadily as our facilities, employees and suppliers recovered from the aftermath of the floods." Speaking about the issue, Eicher Motors previously stated, "Due to heavy rains and flooding in Chennai, both of Royal Enfield's production facilities in Thiruvottiyur and Oragadam were shut since December 1, 2015. The company resumed production of motorcycles on December 7, 2015. However, due to a high rate of absenteeism by the company's employees and issues with our local suppliers, the company will be running at approximately 50 percent capacity this week, and plans to be back up to 100 percent capacity by next week."

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Royal Enfield currently produces 350cc and 500cc motorcycles - Bullet, Classic, Thunderbird and Continental GT. Due to Chennai floods, the Indian automotive market faced a heavy loss of around Rs. 1200 to 1500 crores as 25% of total Indian production comes from Chennai and surrounding areas.

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