Royal Enfield to invest another Rs 500 cr by ’21

According to the memorandum of understanding inked between the two parties at the second edition of the Global Investors Meet here, the state government will extend fiscal and monetary incentives to the company, subject to it investing Rs 1,500 crore over a period of five years beginning May 2016, Royal Enfield, two-wheeler arm of Eicher Motors, said in a regulatory filing.

Out of Rs 1,500 crore, Royal Enfield has already invested over Rs 1,000 crore. It is planning to put in the rest of the capital towards capacity expansion at its three existing manufacturing facilities in Thiruvottiyur, Oragadam and Vallam Vadagal that are producing motorcycles for India and international markets.

It is also planning to invest for setting up the technology centre along the OMR. The MoU is subject to ratification by the Board of Eicher Motors, the company said.

Royal Enfield had signed a similar MoU in May 2012 with the Tamil Nadu government for setting up its new manufacturing unit at Oragadam with an investment commitment of Rs 350 crore. The time frame for the investment was from 2011 to 2016.