CorporateRoyal Enfield plans to ride on brand value, globally
The iconic bike maker Royal Enfield, the custodian of the oldest motorcycle brand in the world, is looking at increasing its brand reach in international markets on the back of its rich heritage.
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Originally founded in Britain as the Enfield Manufacturing Co. Ltd, the firm started manufacturing motorcycles in India in 1955 but the parent company was subsequently dissolved in 1971. However, Enfield India, its domestic venture, continued production and was bought in by Eicher Motors in 1994. The company is now preparing a blueprint, for penetrating deeper into the UK, the US, European and Australian markets, which could include the establishment of exclusive brand outlets in these regions. Currently, Royal Enfield bikes are sold globally in multi-brand stores through a network of distributors.
“We could look at setting up exclusive Royal Enfield stores internationally as the brand is known and recognised abroad. We have 10 such stores in India and the response has been phenomenal. These stores allow customers to experience and understand our motorcycles better,” Royal Enfield Divisional General Manager (Sales & Marketing) Shaji Koshy said. He was in the city to launch the new Classic 500 and Classic 350 motorcycles. These stores are expected to couple with the company"s plans to ramp up exports to international markets. Currently, Royal Enfield exports five models of motorcycles to 29 countries through 30 distributors.
“The UK, Germany and the US are the major export markets for Royal Enfield motorcycles and we are looking at entering into newer regions such as Canada, Israel and Russia. The expectation is that we will export between 10-15 per cent of our production in the next couple of years which is likely to add up to 30 per cent of our revenues,” Koshy said. The company also intends to spend Rs 65 crore at its Chennai facility to increase its capacity to one lakh units by 2013 and is expecting its domestic sales to hit the 60,000 mark next year, he said.