The Royal Enfield Classic duo of the 350 and 500 have definitely upped the ante for RE. To cater to the growing demand for its motorcycles worldwide, Royal Enfield has announced a second plant, in Chennai. On July 12th, 2011 the Tamil Nadu Government allotted Royal Enfield land at the SIPCOT Industrial Growth Centre, Oragadam for the new plant. The proposed Royal Enfield plant, spread over 50 acres, is slated for completion by the first quarter of 2013. Once completed, the new plant will increase Royal Enfield’s current capacity of 70,000 units per annum to 1,50,000 units per annum. The new plant will be equipped to produce the entire product range of Royal Enfield motorcycles.

Orgadam is already home to other big names like Renault Nissan, BharathBenz, Apollo Tyres, Delphi Automotive Systems and is also home to the Global Automotive Research Centre, one of the testing centres that fall under the NATRiP (National Automotive Testing and R&D Infrastructure Project) umberella.

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For Royal Enfield, expanding in Chennai comes with several advantages. Royal Enfield claims that being in proximity to its first plant will bring synergies for the supply chains as well as its human resources.