The company made the announcement during trading hours today, 30 April 2013.
Meanwhile, the S&P BSE Sensex was up 42.28 points or 0.22% at 19,429.78.
On BSE, 1,314 shares were traded in the counter as against average daily volume of 3,466 shares in the past one quarter.
The stock hit a high of Rs 2,976 and a low of Rs 2,905.10 so far during the day. The stock had hit a record high of Rs 3,240 on 3 December 2012. The stock had hit a 52-week low of Rs 1,620 on 21 June 2012.
The stock had outperformed the market over the past one month till 29 April 2013, surging 14.93% compared with the Sensex's 2.93% rise. The scrip had also outperformed the market in past one quarter, jumping 7.63% as against Sensex's 3.02% fall.
The mid-cap company has equity capital of Rs 27 crore. Face value per share is Rs 10.
Eicher Motors said that the Oragadam plant starts with an installed production capacity of 1.50 lakh 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, Eicher Motors said in a statement.
Rolling out the first motorcycle from the Oragadam facility, Mr. Siddhartha Lal, MD & CEO, Eicher Motors said, "At Royal Enfield we have recorded a major milestone today with this plant at Oragadam becoming operational. Royal Enfield has witnessed a huge surge in demand in the recent past, recording a growth of over 50% 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 March 2013. Yet the demand for our motorcycles has continued to outspace the supply. Therefore we have conceived of this new facility on a much larger tract of land and created a master-plan that can take the eventual production here to over 5 lakh per year. With the speedy execution of the first phase of the plan, we have revised our production target upwards in 2013 to 1.75 lakh motorcycles from both plants. However, even as we start commercial production today, we have already begun working on the second phase of expansion at Oragadam, which will further increase the production capacity to 2.50 lakh motorcycles in 2014. With this new facility, we now have the ability to scale our production quantity quickly in response to market demand".
Mr. Siddhartha further said, "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".
Talking about Royal Enfield's future plans, Mr. Siddhartha said, "The ability to increase capacity fast and superior quality of motorcycles is a crucial step for Royal Enfield towards meeting our global ambitions. While we are adding new models and new dealerships in the Indian market which is fueling 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".
Eicher Motors' consolidated net profit declined 14.9% to Rs 72.72 crore on 3.3% growth in net sales to Rs 1630.49 crore in Q4 December 2012 over Q4 December 2011.
Eicher Motors' equal joint venture (JV) with the Volvo group -- VE Commercial Vehicles -- designs, manufactures and markets commercial vehicles. Operational since July 2008, VE Commercial Vehicles (VECV) comprises of five business verticals -- Eicher Trucks and Buses, Volvo Trucks India, Eicher Engineering Components and VE Powertrain. VECV includes the complete range of Eicher's commercial vehicles, components and engineering design businesses as well as the sales and distribution of Volvo trucks. Eicher Motors also manufactures and markets the iconic Royal Enfield motorcycles. Eicher Motors' 50:50 strategic JV with US based Polaris Industries Inc., Eicher Polaris will design, develop, manufacture and sell a full new range of personal vehicles.
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