Under the MoU, Eicher has proposed to invest around Rs 3,000 crore over a period of eight years into the state to set up greenfield and brownfield projects in the region.
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.
Key provisions of the MoU include the Government of 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.
B Govindarajan, CEO - Royal Enfield, commented on the development stating "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.”
Eicher Motors is the listed parent of Royal Enfield, the global leader in middleweight motorcycles. In addition to motorcycles, Eicher has a joint venture with Sweden's AB Volvo - Volvo Eicher Commercial Vehicles which operates in India's commercial vehicle space.
The automobile major's consolidated net profit surged 54.71% to Rs 1,016.25 crore in Q2 FY24 from Rs 656.86 crore posted in Q2 FY23. The company recorded its highest ever revenue from operations at Rs 4,114.53 crore in the second quarter of FY24, registering a growth of 16.91% YoY.
The scrip was up 0.08% to currently trade at Rs 3887.90 on the BSE.