Royal Enfield’s MoU worth Rs 3000 crore with Tamil Nadu govt is for brownfield & greenfield projects
Chennai, NFAPost: Royal Enfield, a unit of Eicher Motors Ltd(EML) and Hinduja Group’s Ashok Leyland on Monday signed memorandum of understanding (MoU) with Tamil Nadu government at the Global Investors Meet 2024 on Monday.
Iconic bike maker Royal Enfield, a unit of Eicher Motors Ltd(EML) signed a non-binding MoU with Tamil Nadu government, proposing to invest around Rs 3,000 crore over a period of eight years in the state to set up greenfield and brownfield projects .
This investment will be majorly used for the development of new products, EVs (product development and capacity building) and also additionally for any capacity enhancement for ICE, whenever required. It is anticipated to create employment opportunities for up to 2,000 individuals, both directly and indirectly.
Key provisions of the MoU include the Tamil Nadu’s assurance of necessary infrastructural support and regulatory facilitation in accordance with applicable laws. The government will also prioritise providing uninterrupted power supply and other essential infrastructure support on a best-effort basis to the company.
Royal Enfield Chief Executive Officer B Govindarajan said Tamil Nadu has been the company’s home, anchor for engineering, technical and manufacturing foundations for several decades.
“This strategic investment in Tamil Nadu marks a significant milestone for us at Royal Enfield. In a bid to promote a healthy balance between man, machine and terrain, we look forward to delivering on our vision of manufacturing premium and evocative motorcycles that are Made in Madras and celebrated across the world,” said Royal Enfield Chief Executive Officer B Govindarajan.
The manufacturing facilities in Oragadam and Vallam Vadagal have consistently demonstrated Royal Enfield’s commitment to deliver best in class products to address the evolving needs of customers across the globe. The upcoming expansion will not only strengthen Royal Enfield’s production capabilities but also contribute to the state’s position as a major automotive manufacturing hub.
Royal Enfield has also signed two similar MoUs back in January 2019 and May 2012 with the Tamil Nadu and the commitments were completed before the stipulated investment period, said a company statement.
MoU between Hinduja Group and TN govt
Ashok Leyland MD & CEO Shenu Agarwal exchanged an MoU between the Hinduja Group and the Tamil Nadu government at the Tamil Nadu Global Investors meet for an investment of Rs 1,200 crore over the next 3 to 5 years, assigned for strategic initiatives to drive innovation, technological advancements and overall business expansion.
This commitment also reflects the group’s vision for sustainable growth and competitiveness in the automotive sector. The group is committed to creating employment opportunities for 500- 1000 people both direct and indirect, based on the work demand, an Ashok Leyland statement said.
