Royal Enfield
CORPORATE/AUTO - BIKES
Royal
Enfield prepares for its next level of global
growth: Commences commercial production
from the Oragadam manufacturing facility
Royal Enfield’s capacity for 2013 to be
175,000 motorcycles
Royal Enfield today started commercial
production from its new manufacturing facility at Oragadam, Tamil Nadu. Spread
over 50 acres, the Oragadam plant starts with an installed production capacity
of 150,000 units in the first phase. An initial investment of Rs 150 crores has
been made towards construction of this facility that will produce the full
range of Royal Enfield motorcycles.
Rolling out the first
motorcycle from the Oragadam facility,
Mr Siddhartha Lal, MD & CEO, Eicher Motors Ltd. said, “At Royal Enfield
we have recorded a major milestone today with this plant at Oragadam becoming
operational. Royal Enfield has witnessed a huge surge
in demand in the recent past, recording a growth of over 50% for each of the
last two years. We have been extremely successful in stretching the capacity of
our existing 60 year old plant to record levels – achieving production of over
12,000 motorcycles in the month of March 2013. Yet the demand for our
motorcycles has continued to outpace the supply. Therefore we have conceived of
this new facility on a much larger tract of land and created a master-plan that
can take the eventual production here to over 500,000 per year. With the speedy
execution of the first phase of the plan, we have revised our production target
upwards in 2013 – to 175,000 motorcycles from both plants. However,
even as we start commercial production today, we have already begun working on
the second phase of expansion at Oragadam, which will further increase the
production capacity to 250,000 motorcycles in 2014. With this new facility, we
now have the ability to scale our production quantity quickly in response to
market demand.”
“This new plant has been
benchmarked to achieve the highest level of quality and productivity. We have
re-tooled many of the parts that make up our motorcycles – so that they are of
exacting accuracy and finish. The substrate quality of the sheet metal parts,
for example, is now at par with the best in the world; when these parts undergo
the world-leading CED and paint process here at Oragadam – they will have a
surface finish and life of the highest quality”, he further added.
Talking about Royal
Enfield’s future plans Mr Siddhartha Lal said, “The ability to
increase capacity fast and superior quality of motorcycles is a crucial step
for Royal Enfield towards meeting our global ambitions. While we are adding new
models and new dealerships in the Indian market which is fuelling our growth,
we are also working on building our presence globally. Higher investments into brand and
distribution, as well as new products that are very appealing to international
markets are going to be key for us to achieve global leadership in the mid-size
motorcycle category.”
The construction at
the plant commenced in February 2012 and with civil work continuing around the
clock, it was completed in a record time of 11 months. In addition to increasing
capacity, the Oragadam plant has been designed to optimize cost of production through
relevant automation while retaining the human craftsmanship that is distinct to
the iconic Royal Enfield motorcycles. Towards this, an absolutely path breaking
new CED paint shop with a painting capacity of 600 motorcycles per day has been
installed in the plant. Further, to ensure consistency and less wastage, a
robotic painting system and powder coating system have also been added. At the
same time, processes such as the legendary pin-striping continue to be done
through craftsmen who lend that special human touch to each motorcycle. The vehicle
assembly line at Oragadam comes with several features such as ergonomic
assembly work stations, torque controlled tools with feedback device and a
capacity of producing one motorcycle a minute, or over 800 per day on two
shifts. Effective controls and process, right from material handling to review
mechanisms, have been created on the backbone of a modern and strong IT
infrastructure. In addition, chassis dynamometers and a 1.4 kilometer test
track within the factory premises allows for the motorcycles to be thoroughly
tested before they are dispatched for customers.
The Oragadam facility has
been built with sustainability in mind from the very beginning of the design
stage with several initiatives such as reduction of effluent generation at
source and zero liquid discharge system of treatment. In addition conservation
of resources such as electricity, water and fuel has been given top priority. Even
during the construction stage, the green concept was applied such as using soil
from within the site for filling, as well as using the ideal quantities of steel,
concrete and cement. The focus was also on creating efficient work
spaces, equipment and utilities and hence effective use of natural, diffused lighting, natural air flow inside plant and 25% of wooded
area have been ensured.
About
Royal Enfield:
The oldest motorcycle company in
continuous production, Royal Enfield made its first motorcycle in 1901. A
division of Eicher Motors Limited, it has been a pioneer of powerful four
stroke technology since 1955 in India. With its manufacturing base in Chennai,
India, the company offers a variety of models catering to the needs of motorcycling
enthusiasts.
Royal Enfield’s product line‐up
includes the Bullet, Classic and Thunderbird models in both 350 and 500cc
displacements. Royal Enfield operates through 11 company-operated stores and
250 dealers in all major cities and towns. Royal Enfield motorcycles are
exported to over 40 countries across the world including the USA, Japan, UK,
several European and Latin American countries, as well as the Middle East and
South Asia.
Royal Enfield also organizes and supports
many enthusiast activities, events and rides across the country, more
prominently the Rider Mania – an annual gathering of Royal Enfield riders from
all over the country and the Himalayan Odyssey, the largest motorcycle ride
over some of the toughest roads and highest mountain passes in the region of
Himachal and Ladakh.
About Eicher Motors Limited:
Eicher Motors Limited (EML),
incorporated in 1982, is the flagship company of the Eicher Group in India and
a leading player in the Indian automobile industry. Its 50-50 joint venture
with the Volvo group, VE Commercial Vehicles Limited, designs, manufactures and
markets reliable, fuel-efficient commercial vehicles of high quality and modern
technology, engineering components and provides engineering design solutions. Eicher Motors also manufactures and markets the
iconic Royal Enfield motorcycles that leads the premium
motorcycle segment in India. The oldest motorcycle company in continuous
existence, Royal Enfield has witnessed a huge surge in demand in the recent
past; recording a growth of over 50% year on year for each of the last two
years. EML’s 50:50 strategic joint venture with US based Polaris
Industries Inc., Eicher Polaris Pvt Ltd. will design, develop, manufacture and
sell a full new range of personal vehicles. In 2012, Eicher Motors recorded the
highest ever sales of Rs. 7,000 crores (USD 1.3 billion).
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