RACE/18-19/009

Royal Enfield
FOUNDED
 1901 (a s The Enfi eld Cycl e Company
Li mi ted of Redditch, Worcesters hi re )
 1955 (pa rtnered wi th Ma dras Motors
to form Enfi el d Indi a )
 1994 (merged wi th Ei cher group to
form Royal Enfield)
KEY PERSONS
 Al bert Ea die & Robert Walker Smith |
Founders
 Si ddha rtha La l | CEO
 Rudra tej Si ngh | Pres i dent
 Ma rk Wel ls | Head of Product Stra tegy
 Shubhranshu Si ngh | Gl obal Head of
Bra nd
HEADQUARTERS
Chennai, India
COMPANY FINANCIALS
Roya l Enfield Standalone Financials aren’t
a va ilable. Eicher Motors Ltd consolidated
fi na nci a l s a re s ta ted bel ow:
 Net revenue from operations
(refl ecting the business of Royal Enfield
motorcycl es) for the year 2017-18 was
Rs . 8,965 crores , a growth of 27% over
2016-17.
 In 2017-18, Cons olidated EBITDA grew
29% to Rs . 2,808 crores a nd PAT grew
18% to Rs . 1,960 crores .
 EML s et a new industry benchmark with
a n EBITDA margin of 31.3% i n 2017-18.
PRODUCTS
COMPANY BRIEF
Roya l Enfield is a n Indian motorcycl e manufacturing brand with the ta g of “made like a gun”& "the oldest
gl obal motorcycl e brand i n continuous production” a nd a s ubsidiary of Ei cher Motors Li mited. First
produced in 1901, Royal Enfield Bullet hasthe l ongest motorcycle production run of all time. Royal Enfield
ha s 3 manufacturing plants in Chennai (Thiruvottiyur, Oragadam, & Va llam Vadagal). The manufacturing
fa ci lity has received the ISO 9001 certification for managing its operations in a clean and safe environment,
a nd ISO 14001-quality certification and kaizens are implemented to ensure the quality levels are kept at
a n ever-rising pace. The active in-house Research & Development wing in Chennai is constantly at work to
meet cha nging cus tomer preferences a nd the cha llenges of Indian a nd International environment
s ta nda rds .
History: The Enfi eld Cycl e Compa ny ma de motorcycles, bi cycles, l awnmowers a nd s tationary engines
under the name Royal Enfield out of its works based at Redditch, Worcestershire. In 1909 Royal Enfield
i ntroduced a s mall Motorcycl e with a 2 ¼ HP V twi n Motosacoche engine of Swiss origin. In 1911 the next
model was powered by a 2 ¾ HP engine and boasted of the well-known Enfield 2-speed gear. Royal During
WW1, Enfi eld supplied consignments of their 6 HP sidecar Outfit motorcycles with Stretchers to the Crown
& Bri tish War Department. During WW2, Royal Enfield develop ed and manufactured Royal Enfield WD/RE,
known a s the Fl ying Flea, a l ightweight 125 cc motorcycl e designed to be dropped by pa rachute with
a i rborne troops for the Bri tish a uthorities. Royal Enfield motorcycl es were being s old i n India s ince 1949.
In 1955, The Indian government ordered 800 of these 350 cc motorcycles for Police & Army Pa trolling. The
Enfi eld Bullet dominated the Indian highways with each passing year. In 1970, Royal Enfield UK production
cea sed and in 1971, the company was dissolved. In 1990, Enfield India entered i nto a strategic alliance
wi th the Ei cher Group, a nd l a ter merged wi th i t i n 1994.
RECENT NEWS
 Roya l Enfield Rider Ma nia 2018 registrations open (Sept 07, 2018)
 Vi ma l Sumbly joins Royal Enfield as Head, Asia Pa cific (Sept 05, 2018)
 RE deci des to s et up wholly-owned subsidiaries in Indonesia and Thailand i n 2018-19.
 Roya l Enfield a chieves highest ever s ales i n FY 2017-18: Sells over 8.20 l akh motorcycl es (Apr 2018)
 Roya l Enfield Reveals Continental GT and Interceptor 650cc Twi ns (Jan 18,2018)
 RE s ets up wholly owned subsidiary i n Brazil in 2016-2017.
 RE opened a 120-seater Garage Café a t Baga Beach, Goa. The cafe houses a motorcycl e museum &
exhi bition area, a n exclusive gear store, a motorcycl e customization a rea & a servi ce bay. (Nov 2017)
 Roya l Enfield launches Himalayan i n Nepal (Sept 30,2016)
 Roya l Enfield team up with Flipkart to s ell a ccessories. (July 04,2016)

 Twi ns: Conti nental GT 650, Interceptor

650 INDUSTRY OVERVIEW
 Crui s er (Thunderbird Seri es): 500, 350, X
Soci ety of Indian Automobile Ma nufacturers (SIAM) has confirmed s ales of the two-wheeler i ndustry's
 Retro Street (Classic Seri es): 500, 350,
domestic sales for FY2018 a t 20,192,672 uni ts, which marks the first ti me that the industry has surpassed
Squa dron Bl ue, Des ert Storm, Ba ttle
the 20-mi l lion s ales mi lestone. Indian two-wheeler i ndustry grew by 9.6% duri ng Apri l-November 17,
Green, Chrome, Stealth Black, Gunmetal
hi ghes t i n the l a s t fi ve yea rs (4.7% CAGR). 2W exports from Indi a ha s a l s o gone up by 17.5% YoY
Grey, Pega s us Edi ti on, 350 Si gna l s
 Sta ndard Street (Bullet Series): 500, 300,
ES
COMPETITORS
Indian: Ba ja j, Hero, Ma hi ndra (BSA &
Ja wa ), TVS
International: Benelli, Duca ti , Ha rley-
Da vi dson, Honda, Ka wa saki, Suzuki,
Tri umph, Ya ma ha

REFERENCES
 http://www.eicher.in/ar2017-18/index.html
 http://www.eicher.in/ar2017-18/letter-to-the- OTHER INFO
shareholders.html
 https://www.autocarindia.com/bike-news/vimal-
sumbly-joins-royal-enfield-as-head-asia-pacific-409575  In 2017-18, Roya l Enfield’s sales volume grew by 23% to 8,20,121 motorcycl es. Their market share in
 https://www.autocarindia.com/bike-news/royal- a bove 125cc ca tegory of motorcycl es i n Indi a i ncrea s ed from 24% to 27%.
enfield-rider-mania-2018-registrations-open-409595
 https://www.financialexpress.com/auto/bike-  RE debuted on Economic Times Brand Equity’s Top 100 Mos t Trus ted brands l ist, perha ps the only
news/royal-enfield-achieves-highest-ever-sales-in-fy- bra nd to ha ve done s o wi thout a ny ma jor a dverti s i ng s pend.
2017-18-sells-over-8-20-lakh-motorcycles/1118238/
 RE ha s 825 s tores i n India making us the strongest premium motorcycl e dis tri buti on i n the country.
 http://www.autocarpro.in/news-national/india-
wheeler-industry-sells-20m-units-fiscal-28927  Internationally, e xcl usive Roya l Enfield s tores a re present a cross UK, Col ombia, USA, UAE, France,
 https://www.fintapp.com/blog/two-wheeler-industry- Spa in, Indonesia, Thailand, Philippines, Australia, Portugal, Ma laysia, Bra zil, Vi etnam a nd Argentina ,
analysis-research-report/
 http://ws.karvyonline.com/viewdocument.aspx?Docu Aus tri a , Mexi co & New Zea l a nd.
mentID=19568  RE i ntroduced fi rs t pre-owned motorcycl e s tore - Vi nta ge - i n Chenna i .

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