Global Investors Meet 2024: Royal Enfield inks MoU with Tamil Nadu govt for proposed investment of Rs 3,000 cr

The anticipated outcome of this investment is the creation of employment opportunities for around 2,000 individuals, directly and indirectly

Royal Enfield, a unit of Eicher Motors Limited (EML) and a prominent player in the middle-weight motorcycle segment worldwide, entered into a non-binding Memorandum of Understanding (MoU) with the Government of Tamil Nadu, at the Global Investors Meet 2024 in Chennai on January 8.

As per the MoU, Eicher Motors is planning to inject approximately Rs 3,000 crore over eight years in the state. This investment aims to establish both greenfield and brownfield projects in the region, primarily allocated for the development of new products, EVs (including product development and capacity expansion), and potential capacity enhancements for ICE as needed.

The anticipated outcome of this investment is the creation of employment opportunities for around 2,000 individuals, directly and indirectly, thereby playing a crucial role in the socio-economic advancement of the state of Tamil Nadu.

The MoU outlined key commitments, with the Government of Tamil Nadu pledging necessary infrastructural support and regulatory facilitation. Additionally, the government undertakes to prioritize providing continuous power supply and essential infrastructure support to the company to the best of its capabilities.

Royal Enfield's CEO B Govindarajan and V Arun Roy, Secretary of the Tamil Nadu Industries Department, exchanged documents in the presence of Chief Minister M K Stalin.

"Tamil Nadu has been our home, anchor for our engineering, technical and manufacturing foundations for several decades. This strategic investment in Tamil Nadu marks a significant milestone for us at Royal Enfield." Govindarajan said.

"We extend our heartfelt gratitude to the Government of Tamil Nadu for their unwavering support, and we are eager to partner with the government and create a positive impact on the community and contribute to the state's overall economic prosperity," he said.

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The manufacturing facilities in Oragadam and Vallam Vadagal have consistently demonstrated Royal Enfield's dedication to delivering top-notch products to meet the changing needs of customers worldwide. The upcoming expansion is poised not only to enhance Royal Enfield's production capabilities but also to bolster the state's position as a prominent automotive manufacturing hub.