Royal Enfield set to invest Rs 3,000 cr in TN
Under the MoU, the investment would be done over a period of eight years into the state to set up greenfield and brownfield projects in the region.
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CHENNAI: Royal Enfield, a unit of Eicher Motors Limited (EML) and global leader in the middle-weight motorcycle segment is on track to invest Rs 3,000 crore after it signed a non-binding MoU with TN at Global Investors Meet 2024, here on Monday.
Under the MoU, the investment would be done over a period of eight years into the state to set up greenfield and brownfield projects in the region.
This investment will be largely be used for the development of new products, EVs (product development and capacity building) and also additionally for any capacity enhancement for ICE, whenever required. This investment is anticipated to create employment opportunities for up to 2,000 individuals, both directly and indirectly, further contributing to the socio-economic growth of the state.
Key provisions of the MoU include TN’s assurance of necessary infrastructural support and regulatory facilitation in accordance with applicable laws. The government will also prioritise providing uninterrupted power supply and other essential infrastructure support on a best-effort basis to the company.
B Govindarajan, CEO, Royal Enfield, said “TN has been our home; anchor for our engineering, technical and manufacturing foundations for several decades. This strategic investment marks a significant milestone for us. In a bid to promote a healthy balance between man, machine and terrain, we look forward to delivering on our vision of manufacturing premium and evocative motorcycles that are Made in Madras and celebrated across the world!”
The manufacturing facilities in Oragadam and Vallam Vadagal have consistently demonstrated Royal Enfield’s commitment to deliver best in class products to address the evolving needs of customers across the globe. The upcoming expansion will not only strengthen Royal Enfield’s production capabilities but also contribute to the state’s position as a major automotive manufacturing hub.
Royal Enfield has also signed two similar MOUs back in Jan 2019 and May 2012 with TN. The commitments were completed before the stipulated investment period, as per a release.