Rolling out the first motorcycle from the Oragadam plant, Mr Siddhartha Lal, MD & CEO, Eicher Motors Ltd. in the outskirts of Chennai. This is Royal Enfield’s second production facility and has been constructed at an investment of Rs 150 crore for the first phase of the facility.
The new 50-acre plant which
is almost five times bigger from the original plat of Royal Enfield will
significantly reduce waiting periods on Enfield bikes, however, even as we start commercial production today with
the target of 175,000 motorcycles this year of 2013, “we have already begun
working on the second phase of expansion at Oragadam, which will further
increase the production capacity to 250,000 motorcycles in 2014." said
Mr. Siddharth Lal.
Last year, the company sold
1,13,000 units, and it has grown by over 50% over the last
couple of years.
Siddhartha Lal, managing
director and CEO, Eicher Motors Ltd. said, “We have re-tooled many of the parts
that make up our motorcycles – so that they are of exacting accuracy and
finish. The ability to increase capacity fast is a crucial step for Royal Enfield
towards meeting our global ambitions. While we are adding new models and new
dealerships in the Indian market, we are also working on building our presence
globally.”
A new CED (Cathodic
Electrocoat Deposition) paint shop with a capacity of 600 motorcycles per day
has been set up. Further, a robotic painting system and powder coating system
have
also been employed to reduce wastage.
The new plant will help
Royal Enfield to improve the quality of its motorcycles and reach out to new
global markets. Built in 11 months,
the Oragadam plant has been designed to optimize cost of production through
relevant automation while retaining the human craftsmanship that is distinct to
the iconic Royal Enfield motorcycles, the company said.
At the same time, processes
such as the pin-striping continue to be done through craftsmen
who lend that
special human touch to each motorcycle. The vehicle assembly
line at Oragadam comes with several features such as ergonomic assembly work
stations, torque controlled tools with feedback device and a capacity of
producing one motorcycle a minute or over 800 per day on two shifts. Effective
controls and process, right from material handling to review mechanisms, have
been created on the backbone of a modern and strong IT infrastructure.
In addition, chassis
dynamometers and a 1.4 kilometre test track within the factory premises allows
for the motorcycles to be thoroughly tested before they are dispatched for
customers.
The second plant would initially
begin with the production of Desert Storm and Thunderbird vehicles. By the end
of the year, the company expected to produce the entire range, including the
Bullet and Classic, he said. Construction of the facility began in February
2012. Trial production began in January this year. Royal Enfield already has a
plant in Tiruvottriyur near here. Pointing out that the U.S. was the largest
export market for Royal Enfield, Mr. Lal said that last year the company
shipped about 3,500 units to the country out of the total 1,13,000 units sold.
The Oragadam facility has
been built with sustainability in mind from the very beginning of the design
stage with several initiatives such as reduction of effluent generation at
source and zero liquid discharge system of treatment. In addition conservation
of resources such as electricity, water and fuel has been given top priority.
Even during the construction stage, the green concept was applied such as using
soil from within the site for filling, as well as using the ideal quantities of
steel, concrete and cement. The focus was also on creating efficient work
spaces, equipment and utilities and hence effective use of natural, diffused
lighting, natural air flow inside plant and 25% of wooded area have been
ensured.
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