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Wednesday, 1 May 2013

Royal Enfield Starts New Oragadam Plant; Waiting Period to Go Down!

In an official announcement, Royal Enfield has declared that they have commenced commercial production from their new Oragadam facility in Tamil Nadu.
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The plant which started construction in February last year was completed in record time of 11 months. The new Oragadam facility is spread across 50 acres with a capacity of 1.5 Lakh units during the first phase. The first motorcycle to roll out from the plant is this pictured Desert Storm.  
During all these years, Royal Enfield lovers have always been upset over huge waiting period of their favorite bikes. And Mr Siddhartha Lal, MD and CEO Eicher Motors, admits that demand has always outstripped their production capacities.  The company has witnessed a hike in demand and registered growth of over 50% for the last two years. The company has also revised their combined production target for the year 2013 to over 1.75 Lakh units.
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After the successful completion of phase 1, work is already underway for the second phase of development. Once the second phase is completed Royal Enfield will have a capacity to produce 2.5 Lakh motorcycles by next year. Royal Enfield has incurred a total investment of Rs 150 crore for this new plant and it will have the capability to manufacture all Royal Enfield motorcycles in the lineup.
Main Features of Royal Enfield Oragadam Plant:
  • Cost optimization through automation
  • New CED paint shop with a painting capacity of 600 motorcycles each day
  • Robotic painting system and powder coating system has been added to prevent wastage and consistency
  • Pin-stripping continues to be performed by craftsmen to lend that human touch Royal Enfield bikes are known for
  • Ergonomic assembly work stations and torque controlled tools with feedback device
  • The plant has the capability to produce one motorcycle each minute which accounts to 800+ units per day in two shifts
  • It also has chassis dynamometers as well as a 1.4 km test track inside the plant 
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With this plant starting production, waiting period of all Royal Enfield bikes is expected to come down significantly. Royal Enfield has some ambitious plans which also includes increase in global presence. The Chennai based manufacturer has very recently launched the Bullet 500 in India and is getting ready to launch their most technically advanced, fastest and the most awaited Cafe Racer of Continental GT.

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