Royal Enfield aims to double sales in 5 years

Royal Enfield announced its intention to double it sales over a five-year period backed by product innovations here on Friday. The maker of niche segment motorcycles plans to broadbase its customer base to achieve its aim.

For a start, the company has introduced two new motorcycles as part of its 50th anniversary celebrations. Both the vehicles are variants of its existing brands "" Bullet Electra and Thunderbird.

Royal Enfield's new introductions are in sync with its long-term aim to broadbase its customer base. For example, the new Bullet Electra has a gearshift on the left side of the vehicle. This is meant to help the potential customers who have been riding other brands make an easier transition to the Bullet.

In the next financial year, the company plans to showcase a vehicle that is meant to attract the "young adult." Royal Enfied's CEO, R L Ravichandran said the vehicle would be built on a new platform and inject a relatively greater degree of fuel efficiency.

Even some of the existing vehicles are to be fitted with new engines soon. Ravichandran said a new engine that is under development is likely to be used in the company's Thunderbird model in about six months. Also in the pipeline is a 500 cc engine for Enfield's export models.

All these innovations and launches are meant to lead to a sales volume of 60,000 units a year over a five-year period, said Ravichandran.

The company sold 29,576 motorcycles in 2004-05, of which 1,577 units were exported. In the current fiscal, Ravichandran said the sales target was 40,000 units.

The Eicher group took over Royal Enfied in 1994. Today, Royal Enfield is an unit of Eicher Motors. The Eicher group's financial results showed that Royal Enfield's turnover in 2005-05 was Rs 163 crore, and the operating profit was Rs 0.66 crore.

The journey thus far

Royal Enfield was incorporated in India in November 1955. The manufacturing plant was set up in Chennai in 1956, and has been rolling out Bullet motorcycles ever since.

The company's largest selling brands are the standard Bullet 350 cc and the Bullet Electra.

About 8 per cent of the company's sales is directed to institutions such as the defence services and the police.