Royal Enfield zeroes in on TN, Andhra for new base

Makers of iconic bullet motorcycles Royal Enfield Motors, which has been facing capacity constraints to meet the demand growth, are likely to set up a new manufacturing unit near Chennai. The company is reported to have finalised a location for the proposed green-field project and the production unit, its second factory, is likely to come up at the Oragadam automobile corridor here.
The company has been evaluating sites in both Tamil Nadu and Andhra Pradesh to set up its second Bullet manufacturing unit. “We are very confident that Royal Enfield will remain in Tamil Nadu and will not go to any other place for its second plant,” a top state official told Financial Chronicle.
Royal Enfield, part of Eicher Motors, is reported to have committed a total investment in the range of Rs 300-350 crore over a period of time for the project. However, it is expected to invest Rs 150-200 crore initially in establishing the Bullet production unit, which may come up over 50-60 acre land area near Oragadam. The proposed plant will be bigger than the existing one. “We are in discussion with the state government and we hope to finalise things in about 10 days,” a top Eicher official said.
Royal Enfield has been facing production constraints to meet the demand growth for its motorcycles. Though the company has been gradually ramping up the production capacity at its Thiruvottiyur plant, near Chennai, the waiting period for its products continues to be very long. It has over six months waiting list in most of the models. The company has now improved its supplies significantly to over 6,000 units a month during the January-March 2011 quarter from about 4,500 last year. It hopes to achieve a monthly run rate of over 6,500 by the second half of this year as the order book continues to be strong.
As per the proposed expansion, Royal Enfield intends to ramp up the capacity with the establishment of new plant to 12,000 per month by the end of 2012.
Royal Enfield has expanded its presence from North America to Europe and Japan to Australia over the past five years. In 2010, UK ranked it among the top 10 selling motorcycle brands in the 125-500 cc category.
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IMFL maker Tilaknagar Industries to focus on AP market

HYDERABAD: Tilaknagar Industries Ltd (TI), a leading Indian Made Foreign Liquor (IMFL) manufacturer, to focus on Andhra Pradesh market even as it gets ready to launch seven new liquor brands with an aim to enter into new markets in the country.

The company rolled out Duschess VSOP brandy in the state recently and would bring in some brands.

In a statement, the company said it would launch four new whiskies, two varieties brandy and one rum brand in the market. The new launches would be followed by re-launch of two existing brands with new blends and attractive packaging.

“The multiple brand launch marks a new phase of growth for TI and forms part of its plan to bring to the fore a number of brands catering to different segments across the categories of brandy, whisky, rum, vodka and gin. TI plans to achieve milestones this year through the existing as well as new products in the portfolio,” said Amit Dahanukar, Chairman and Managing Director of the company.

A key player in the South India, TI’s flagship brand Mansion House Brandy leads the market in its segment across various markets. “With a market share of 56 per cent in Andhra Pradesh, 78 per cent in Kerala, 97 per cent in Karnataka, 42 per cent in Tamil Nadu, 78 in Pondicherry and almost 100 per cent in Goa, Mansion House Brandy enjoys clear leadership position. With the new brands, we hope to consolidate our position in the South and foray into newer markets, especially in the West and the North, and also add to our volumes,” stated Raja Mukherjee, General Manager (Sales and Marketing).