Royal Enfield signs MOU with Govt. of Tamil Nadu
Deepthi | Myequity news | Date : 24-01-2019 18:00:00 IST
Royal Enfield, the global leader in the mid-sized motorcycle segment signed a Memorandum of Understanding with the Government of Tamil Nadu. The Tamil Nadu government will extend fiscal and monetary incentives, subject to fulfillment of the conditions of the MoU. The MoU envisages aggregate investment of INR 1,500 crores in Tamil Nadu over a period of 5 years beginning May 2016. The investment is proposed to be towards capacity expansion at Royal Enfield's three existing manufacturing facilities in and around Chennai at Thiruvottiyur, Oragadam and at Vallam Vadagal that are producing motorcycles for India and international markets as also towards setting up of the Technology Centre on the Old Mahabalipuram Road (OMR) in Chennai. Out of the INR 1,500 crores, Royal Enfield has already invested over INR 1,000 crores. The MoU is subject to ratification by the Board of Directors of Eicher Motors Ltd (owner of Royal Enfield).
Royal Enfield signed a similar Memorandum of Understanding (MOU) back in May 2012 with Govt. of Tamil Nadu for setting up Company’s new manufacturing unit at Oragadam, Tamil Nadu, with an investment commitment of INR 350 crores to be made from 2011 to 2016. The committed investments were completed before investment period. About Royal Enfield:
The oldest motorcycle brand in continuous production, Royal Enfield made its first motorcycle in 1901. A division of Eicher Motors Limited, Royal Enfield has created the mid-sized motorcycle segment in India with its unique and distinctive modern classic bikes. With its new manufacturing base in Chennai, India, Royal Enfield is able to grow its production rapidly against a surge in demand for its motorcycles.