15 per cent contribution from overseas operations to total sales in the next 3-5 years

Royal Enfield expects 15% of overseas contribution

By Saahil Anant Nov 04 2009 , New Delhi

Royal Enfield launched the Classic 500 & 350, priced Rs 1,24,918 and Rs 98,086.

Eicher Group-owned Royal Enfield said Wednesday it expects 15 per cent contribution from overseas

operations to total sales in the next 3-5 years, as it gears up to sell motorcycles in new markets across Latin America, Africa and the Middle east.

Overseas markets at present contribute to 5 per cent of Royal Enfield’s total sales. The company plans to expand production capacity at its Chennai plant to 100,000 units in the next three years at an investment of around Rs 65 crore.

“India is 95 per cent (sales contribution)… hopefully it will become 85 in the next 3-5 years. In international markets we have a much better margin than in the country,” said Siddhartha Lal, managing director and chief executive, Eicher Motors. The company plans to maintain an operating profit margin of 10 per cent this year, he added.

Royal Enfield also launched the Classic 500 cc and 350 cc models, priced at Rs 1,24,918 and Rs 98,086 respectively, powered by the electronic fuel injection and unit construction engine. The model had already been introduced in European markets during October 2008.