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Royal Enfield

Royal Enfield

Tagline

Jab Bullet Chale toh Duniya Raasta De

Net Worth

$390,000,000,000

Started in (City)

Redditech

Started in (Country)

United Kingdom

Incorporation Date

01st December, 1901

Bankruptcy Date

-

Founders

  • Albert Eadie
  • Robert Walker Smith

About

Royal Enfield is an Indian multinational motorcycle manufacturing company with the tag of "the oldest global motorcycle brand in continuous production" manufactured in factories in Chennai in India. Licensed from Royal Enfield by the indigenous Indian Madras Motors, it is now a subsidiary of Eicher Motors Limited, an Indian automaker. The company makes classic-looking motorcycles including the Royal Enfield Bullet, Classic 350, Meteor 350, Classic 500, Interceptor 650, Continental and many more.

Beginning

Royal Enfield was a conspicuous British organization in the nineteenth century that manufactures various rifles, lawnmowers, bicycles, and motorcycles. Royal Enfield was originally started as a sewing making business by George Townsend. Later, his son started to make cycle components though the company collapsed due to financial issues. The bank decided to hand over the business to Albert Eadie and Robert Walker-Smith. The company was re-incorporated as Eadie Manufacturing Company Limited in 1892.

Road to Success

In 1899, the company manufactured Quadricycle which uses a rear-mounted DE Dion engine. The cycle had a passenger seat-mounted in the front of the driver seat. Later in 1907, Eadie Manufacturing Company Limited was acquired by Birmingham Small Arms Company (BSA). After acquisition, Eadie was a supplier to the government’s Royal Small Arms Factory which was located at Enfield, Middlesex. The RSA incorporated a new subsidiary, The Enfield Cycle Company Limited. The company manages the cycle work. In 1901, the organization turned over creation engine bicycles under the brand name Royal Enfield. The bicycle was a hit in the UK with everybody purchasing the bicycle. In 1914, The Royal Enfield won a contract for the Imperial Russian Government to provide them with a war bike. The company also produces a motorcycle on a large scale for the British War Department. The company produced a sidecar model that uses 8 horsepower which can be fitted with a Vickers machine gun. Royal Enfield uses a 225 cc two-stroke single-cylinder engine and also a 425 cc V-twin cylinder engine. In 1939, The British War Department again called Enfield to manufactures new bikes for the Second World War and thus the company launched various models. One of the models was Royal Enfield WD/RE which was developed and designed to be dropped from airplanes with troops on it. The bike was built with a parachute. Royal Enfield came into existence widely after the Independence of India when the Indian government decided to purchase Royal Enfield Bullet. The bike was purchased to be used in the patrolling of the Indian border by the Indian army. In 1954, the Indian government ordered 800 bikes. The bikes purchased were of 350cc model. To support this request, Royal Enfield searched for an accomplice in India. Royal Enfield partnered with Madras Motors. Enfield of India kept manufacturing the Bullet model and in 1999, they renamed the bike “Royal Enfield”. A lawsuit was filed against Enfield India for using “Royal” but won the case and since then Enfield Indian manufactures various bikes under the name “Royal Enfield”. The Indian motorcycle models include Retros, Café Racer, etc. On the other hand, in 2004, The Eicher Motor company had a new CEO, Siddhartha Lal. Siddhartha then decides to diversify the company and decided to take over Royal Enfield. Thus, The Royal Enfield came back on track and successfully ruled the market. The company then was producing 50000 units per year and as the years passed on the demand for the bike increased. Today the Eicher Motors is the parent company of Royal Enfield. The company has produced 846000 units per 2018. The Royal Enfield’s net income is $270 million with an operating income of $390 million.

Challenges

In 1967, Royal Enfield’s Redditch factory was shutdown. Velocette purchased the operation of spare part manufacturing of Royal Enfield which profited by the course of action to such a degree, that the organization, in general, made due for an additional three years until their conclusion in mid-1971. In 1965, The company produced its last bike, the “Revelation”. And in 1971, The company was dissolved completely. In the same period, the Japanese introduced bikes in the market and widely in the Indian market. The Japanese bikes were cost efficient and consumed less fuel and this led to the shutdown of the Royal Enfield in India.

Failures

In 1962, Enfield developed a new model called 692cc Interceptor followed by other models, 736cc Interceptors. The bike was developed for the US market and the bike became popular. The market demand increased but the company could not meet the demand and this led to the extinct of the US-Model

Achievements

  • Royal Enfield is the world's oldest motorcycle company which still produces motorcycles.
  • Royal Enfield Achievements & Awards Royal Enfield overtook top world brand Harley Davidson in terms of sales; approximately 3,00,000 units were sold by Royal Enfield in 2014 as compared to 2,67,000 sold by Harley Davidson.

Subsidies

  • Eicher Motors Limited

CEOs

  • Vinod K. Dasari