Royal Enfield to double capacity with Rs. 65 crore

Royal Enfield a part of the Eicher Motors on Friday said, the company would revs up one lakh units capacity from 50,000 by 2013. Chennai-based Royal Enfield, a niche motorcycle-maker will invest of Rs 65 crore at the present plant in Chennai and will extend the capacity of one lakh, the DGM (Sales and Marketing) of Royal Enfield S Koshy said. Including Eurpoe and the US, the exporter of 500cc motorbikes in the international market is also targeting to share of exports more than double in its turnover from the current 5 per cent to 10-15 per cent in the next three years. The company is looking to reduce exports of motorbikes to other countries like Africa, Middle East and the Latin America, shift besides its presence in more US and European countries. Royal Enfield also expected increase sales more than double within next five years in abroad. The low government business just only 2 per cent, it has not affected of the company luck, he said. The company has recently launched two new models, Royal Enfield Bullet classic 350 and Royal Enfield Bullet classic 500cc, these models based on a new engine platform and price nearly to Rs 1-lakh each. Earlier, the Royal Enfield Motors company officials had announced, there were plans to rise bigger engine capacity motorbikes like 800cc and 1000 cc at the later stage. Compared to last year 43,298 units sales this year, company is expecting total target sales to be around 50,000 units.