Royal Enfield, a unit of Eicher Motors Limited (EML), maker of the Royal Enfield range of motorcycles, on Monday, signed a non-binding Memorandum of Understanding (MoU) with the Tamil Nadu government at the Global Investors Meet 2024, in Chennai. They proposed to invest nearly INR 3,000 crore over eight years to set up new projects in the state.
The proposed investment will be used primarily to develop new products, electric vehicles (product development and capacity building), as well as any improvements to ICE capability, where applicable. The company said it is expected to create job opportunities for up to 2,000 people, either directly or indirectly.
The key provisions of the MoU include assurances by the Tamil Nadu government on necessary infrastructure support and regulatory facilities by applicable laws. The government will also prioritize providing uninterrupted power supply and other essential infrastructure support to the extent possible to the company.
"Tamil Nadu has been our home; the anchor of our engineering, technical, and manufacturing bases for many decades. This strategic investment in Tamil Nadu marks an important milestone for us at Royal Enfield. We are expanding our reach with sincere gratitude to the Government of Tamil Nadu," said P Govindarajan, CEO, of Royal Enfield. For their unwavering support, we look forward to partnering with the government creating a positive impact on the society and contributing to the overall economic prosperity of the state. To promote a healthy balance between man, machine, and terrain, we look forward to realizing our vision of manufacturing premium and evocative motorcycles that are manufactured in Madras and are celebrated all over the world.
The manufacturing facilities at Oragadam and Vallam Vadagal have consistently demonstrated Royal Enfield's commitment to delivering the best products to meet the changing needs of customers across the globe. The upcoming expansion will not only enhance Royal Enfield's production capabilities but will also contribute to strengthening the state's position as a major automobile manufacturing hub, the company said in a press release.
Royal Enfield also signed two similar MoUs in January 2019 and May 2012 with the Tamil Nadu government. The statement added that the commitments were completed before the scheduled investment period.
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