Royal Enfield Faces Loss of 11,200 Units due to Chennai Floods

Royal Enfield - the two wheeler subsidiary of Eicher motors today announced their loss statistics which they had to face during heavy rains in Chennai. The company’s two plants in Thiruvottiyur and Oragadam were down since December 1 and resumed their operations on 7th December. Due to high number of absent employees, the two plants will be running at 50 percent capacity for the present week and will resume full operations from next week.

On the situation, Eicher Motors 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 per cent capacity this week, and plans to be back up to 100 per cent capacity by next week."

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"Prima facie, there is no damage to equipment or property and all our employees are safe and secure. The company have had production loss of 7,200 motorcycles due to the closure of both the company's manufacturing facilities between December 1- 6, 2015. Many parts of the supply chain still continue to be affected due to the aftermath of floods. Due to the rains, in November, the company lost production of 4,000 motorcycles,” the manufacturer further added.

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According to the company, it suffered a loss of 4,000 motorcycles in November due to the heavy rains and the disturbed supply chain is also contributing to the damage. Once the situation gets back to normal, Royal Enfield will evaluate the insurance loss in due time.