Royal Enfield plans Rs. 800 crore capex for FY2018-19

Royal Enfield has announced a capital expenditure of Rs. 800 crore for FY2018-19. The bike maker will also start construction of Phase-2 of its Vallam Vadagal plant in Tamil Nadu this year.

With production already underway at the Phase-1 of Vallam Vadagal unit and having optimized the productivity at the Oragadam plant, the annual production capacity for the current fiscal year is expected to be around 9,50,000 units. Royal Enfield's Technology Centre in Chennai will also be completed this year. Besides, investments will be made to develop new products that will meet the upcoming regulations, while also expanding its global portfolio.

Royal Enfield launched its retail operations in Thailand back in February 2016. The bike maker now plans to further strengthen its position in the South East Asian market by setting up wholly owned subsidiaries in Indonesia and Thailand in 2018-19.