Chennai:
The Oragadam plant will be the nucleus of global ambition of Royal Enfield as the company is targeting to produce 150,000 units from the plant this current financial year.
Addressing reporters after Royal Enfield started commercial production from its new manufacturing facility at Oragadam on Tuesday, managing director and chief executive officer of Eicher Motors said that Oragadam plant starts with an installed production capacity of 150,000 units in the first phase. An initial investment of Rs 150 crore has been made towards construction of this facility that will produce the full range of Royal Enfield motorcycles.
Subsequently, the work has already begun on the second phase of expansion at Oragadam, which is spread over 50 acres of land. This will increase the production capacity to 250,000 motorcycles by 2014, he said. Interestingly, Royal Enfield has created a master-plan that can take the eventual production here to over 500,000 per year.
He said Royal Enfield has witnessed a huge surge in demand in the recent past, recording a growth of over 50 per cent for each of the last two years. “We have been extremely successful in stretching the capacity of our existing 60 year old plant to record levels – achieving production of over 12,000 motorcycles in the month of March 2013,” he added.
“This new plant has been benchmarked to achieve the highest level of quality and productivity. We have re-tooled many of the parts that make up our motorcycles – so that they are of exacting accuracy and finish. The substrate quality of the sheet metal parts, for example, is now at par with the best in the world; when these parts undergo the world-leading CED and paint process here at Oragadam – they will have a surface finish and life of the highest quality”, Lal added.
Talking about Royal Enfield’s future plans Lal said, “The ability to increase capacity fast and superior quality of motorcycles is a crucial step for Royal Enfield towards meeting its global ambitions. While we are adding new models and new dealerships in the Indian market which is fuelling our growth, we are also working on building our presence globally. Higher investments into brand and distribution, as well as new products that are very appealing to international markets are going to be key for us to achieve global leadership in the mid-size motorcycle category.”
The construction at the plant commenced in February 2012 and with civil work continuing around the clock, it was completed in a record time of 11 months. In addition to increasing capacity, 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.
Towards this, an absolutely path breaking new CED paint shop with a painting capacity of 600 motorcycles per day has been installed in the plant. Further, to ensure consistency and less wastage, a robotic painting system and powder coating system have also been added. At the same time, processes such as the legendary 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 kilometer test track within the factory premises allows for the motorcycles to be thoroughly tested before they are dispatched for customers.
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 per cent of wooded area have been ensured.
Interestingly, the plant also has a gender mix with 20 per cent of its workforce being women. It has also added nine more dealers this year in Tamil Nadu, where it has already 20 dealers. Currently, the company has 11 company operated stores and 250 dealers in all major cities and towns.
The demand for Royal Enfield is so much that it nearly takes a waiting period of 18 months. But will it come dowm. Lal smiles and says it demands upon the demand from the market. If it goes up then the waiting period will stay.
Interestingly, the Tiruvotiyur plant of Royal Enfield is slowly being ramped down. Even the engine making will shift to Oragadum facility slowly, an official says. He said the Tiruvotiyur plan will then be used only for chrome plating as it could not be done in Orgadam due to pollution control board regulations.
Box:
-- Royal Enfield made its first motorcycle in 1901
-- It is the pioneer of four-stroke technology since 1955 in India
-- Royal Enfield’s product-line up includes the Bullet, Classic and Thunderbird models in 300 and 500cc displacements
--- Royal Enfield motorcycles are exported to over 40 countries across the world including US, Japan, UK and other countries
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