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COMPANY PROFILE

ROYAL ENFIELD INDIA LTD


Classic Bikes with power for leisure riding is what a Royal Enfield bike stands for, and Royal Enfield leads
this segment of the market in India by leaps and bounds. Its exquisite range of motorcycles combines
distinctive styles with power, riding comfort and ruggedness to deliver a unique motorcycling experience.

THE BEGINNING
The Enfield Cycle Company made motorcycles, bicycles, lawnmowers and stationary engines under the
name Royal Enfield out of its works based at Redditch, Worcestershire. The legacy of weapons
manufacture is reflected in the logo comprising the cannon, and the motto "Made like a gun". Use of the
brand name Royal Enfield was licensed by the Crown in 1890

HISTORY OF THE COMPANY


Mid 19th century England The firm of George Townsend & Co. opened its doors in the tiny village of Hunt
End, near the Worcestershire town of Redditch. The firm was specialized in sewing needles and machine
parts. In the first flush of enterprise, flitting from one opportunity to another, they chanced upon the pedal-
cycle trade.
Little did they know then that it was the beginning of the making of a legend.
Soon, George Townsend & Co. was manufacturing its own brand of bicycles and in 1893 its products
began to sport the name „Enfield‟ under the entity Enfield Manufacturing Company Limited with the
trademark ‘Made like a Gun’. The marquee was born.
INDUSTRY Motorcycles, Lawnmowers

SUCCESSOR Royal Enfield Motors (formerly Enfield of India)


FOUNDED 1893, as Enfield Manufacturing Co. Ltd.
DEFUNCT 1971

HEADQUARTERS Redditch, Worcestershire, England

KEY PEOPLE Founders Albert Eadie and Robert Walker Smith


PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor.

Profile of the Organization


Royal Enfield is the makers of the famous Bullet
brand in India. Established in 1955, Royal Enfield (India)
is among the oldest bike companies. It stems from the
British manufacturer, Royal Enfield at Redditch. Royal
Enfield has its headquarters at Chennai in India. Bullet
bikes are famous for their power, stability and rugged
looks. It started in India for the Indian Army 350cc bikes
were imported in kits from the UK and assembled in
Chennai. After a few years, on the insistence of Pandit
Jawaharlal Nehru, the company started producing the bikes
in India and added the 500cc Bullet to its line. Within no
time, Bullet became popular in India.
Bullet became known for sheer power, matchless
stability, and rugged looks. It looked tailor-made for
Indian roads. Motorcyclists in the country dreamt to
drive it. It was particularly a favorite of the Army and
Police personnel. In 1990, Royal Enfield ventured into
Collaboration with the Eicher Group, a leading automotive group in India, in 1990, and merged with
it in 1994. Apart from bikes, Eicher Group is involved in the production and sales of Tractors,
Commercial Vehicles, and Automotive Gears.
Royal Enfield made continuously incorporating new technology and systems in its bikes. In
1996, when the Government of India imposed stringent norms for emission, Royal Enfield was the
first motorcycle manufacturer to comply. It was among the few companies in India to obtain the
WVTA (Whole Vehicle Type Approval) for meeting the European Community norms. Today, Royal
Enfield is considered the oldest motorcycle model in the world still in production and Bullet is the
longest production run model.

THE EARLY YEARS

In 1909 Royal Enfield surprised the motorcycling world by introducing a small Motorcycle with a
2 HP V twin Motosacoche engine of Swiss origin. In 1911 the next model was powered by a 2 HP
engine and boasted of the well known Enfield 2-speed gear.
In 1912 came the JAP 6 HP 770 CC V twin with a sidecar combination. It was this
motorcycle which made Enfield a household name.
1914 saw the 3 HP motorcycles this time with Enfield own engine which now had the
standardized Enfield paint scheme of black enamelled parts and green tank with gold trim

BETWEEN THE WARS

At the time of the outbreak of world war I Royal Enfield supplied consignments of their 6
HP sidecar Outfit motorcycles with Stretchers to the Crown. This same motorcycle also came with a
Vickers machine Gun sidecar attachment which could also be turned skywards and used against low
flying aircraft. Royal Enfield supplied large numbers of motorcycles to the British War Department
and also won a motorcycle contract for the Imperial Russian Government.
As the factory developed in the 20's the range of models also increased and in 1924 Royal
Enfield was offering four versions of the 2 HP two-stroke motorcycle, two new JAP engine 350 cc
motorcycles and two versions of the 8 HP Vickers engine sidecar combinations. During the great
depression of the 30s royal Enfield was also affected and the demand for motorcycles waxed and
wanted but the bicycles manfacturin continued at the same space and the company trudged on. The
cycar a fully enclosed motorcycle model appeared in the early 30.
During World War II, like other manufacturers of that time Royal Enfield was also called upon by
the British authorities to develop and manufacture military motorcycles. The models produced for
the military were the WD/C 350 cc SV, WD/CO 350 cc OHV, WD/D 250 cc SV, WD/G 350 cc
OHV and WD/L 570 cc SV.
One of the most well-known Enfield was the Royal Enfield WD/RE, known as the Flying
Flea, a lightweight 125 cc motorcycle designed to be dropped by parachute with airborne troops.
After the war the factory continued manufacturing the models developed during the war and
the legendary J 2 model appeared which went on to be the ancestor of the legendary Bullet. The
same motorcycle which perhaps had the honor of the being the one with the longest production run
in the world.
PRODUCTS
THE INDIA CONNECTION

The grandfather of the bullet was first produced by Royal Enfield in 1931: a four valve single
cylinder was introduced, given the name “BULLET” in 1932. it had an inclined engine and
exposed valve gear. The 1935-G model was the first that assumed the modern look, with vertical
cylinder, cast in pushrod tunnel and
Eventually fully enclosed valve gear. It has a gear- driven magneto and double- ended
eccentric oil pump. Over the next few years the single would sport two, three and four valve cylinder
heads.
1948: The first 350-bullet roadster was introduced. Although it was similar in many ways to
the 1935-G model bullet, it was a new motorcycle with many design innovations. It was the first
British production bike with a rear swing arm. It also had an oil filter (with integral oil tank in the
crankcase behind the crank) and alloy primary chain case. It was a two- valve pushrod design in
semi unit style, with gearbox bolted to crankcase. Rubber kneep ads were on the gas tank. It had four
gears (one up, three down like most British bikes of that era- apparently triumph was the oddity with
high gears up). A trials / scrambler model was also introduced.
1949: the sports model had an unsprung front mudguard.

1951: modifications include smaller front mudguard and silencer, alloy


speedometer nacelle and modified fork ends.
1952: a crankcase breather was fitted plus a side stands. Trials model gets alloy barrel.
Apparently only 16350 bullets made this year. A prototype 500-cc model is shown in an industry
motorcycle show.
1953: the 500 cc roadster model is introduced. The 350cc was upgraded to include changes
designed for the 500cc improved bottom end with four main bearings, improved lubrication system,
modified frame, larger rear brake, single pilot light under headlamp.
1954: a new casquette (nacelle with speedometer, headlight and twin sidelights) replaces
headlamp bracket. The exhaust angle and rear spring and shock are changed. The 350 got a frame
lug changed. The 350 got a frame lug change. Armstrong units were adopted for suspension,
giving 50 percent more movement.
1955: camshaft upgrade. The concentric kicks start and gear changes ever on the gearbox,
plus the air filter are changed. The front brake gets a twin, full width hub, and brake. The 350 get
amonobloc carb. The benchy (dual) seat is now standard, although the single saddle seat was still
available. Around this time, the 500cc bullet was also sold in America as the Indian “woodsman”
In 1955 the Indian government needed a solid and reliable motorcycle for its police and army, in
particular to patrol the rugged border highways. The bullet was chosen as the most suitable bike
for the job. The Indian government ordered 800 of the 350cc models beyond the company’s ability
to fill at the time. With more orders from India looming, the company sold its design to Enfield
India, a subsidiary firm in madras, India to start manufacturing them. There was some retooling
and redesign done at the English plant (Redditch) in 1955 to modernize the bullet (including
changes in the gear ratios in 1959). Between 1956 and 1960, the bullet was released in several
models, including a 350cc trials “ works replica” version and a 350cc “ clipper” model.
Technically the engines and power trains were the same (except for bore size) and the only
differences were in exhaust, seating, and instrumentation. Handlebars and gas tank.
A lot of technical improvements were also making in that time, including moving to
alternator charging (1956) and coil ignition (1960). The 350cc model continued in production, but
the 500cc model was dropped in 1961. An “airflow” model was also made briefly, with a fairing.
1956: Both models underwent several improvements in a new frame and air filter housing,
battery/ toolkit bow. The engine got a wider floating big-end bush and cylinders head changes
(separate rocker boxes retained) and stronger bottom end. The 500 dual seat was introduced by the
Modern Indian Enfield which uses the post- 56 (with metric bearing sizes). And even it used the
earlier frame. 1956 Saw an all-welded, brazed-lug frame introduced, and also sent to India.
1957: Quick-detach rear wheel was introduced as an option. The air filter was enlarged. The
350cc got an alternator. The bullet is now fully manufactured in India under the license, at Anna
Salai; near Chennai. The tooling equipment was also sold to make the 350cc bullet in India in 1958.
Later the Indian firm upgraded to make the 500cc model as well (one printed source says tooling
for both models was sold to India in 1967 but most agree it was 1957).By this time the English
company was under different ownership and that year they closed the Redditch factory where
bullets were manufactured, and hence all the possible remaining tooling equipments were sold to
Chennai at that time, but they certainly had manufacturing equipment in India a decade ago. On
source, Peter Snidal, says that there were “Moto Cross”(MX) bullets made in this period. The 350
had a cast aluminum head and the 500 cc an iron barrel. Apparently two 350s and two 500cc were
imported into Vancouver by Frank Carr in 1957.

They also were equipped with quick-detachable lights and number plates on the rear
frame, plus high straight pipes as well. They were very fast bikes. The 350 would blow away just
about anything on the street up to 70mph or so.He says they were essentially the bikes that he saw
advertised in cycle magazines of the time as the Indian woodsman and warrior-competition
models. They were very fast bikes, Snidal writes. “The 350 would blow away just about anything
on the street up to 70mph or so. In fact, I not only saw the original owner of one of them to do it to
just about all of us, at one time or another, including a 500Velo Venom, which was the 2nd fastest
(after that day) in our little pack, but also 350 Vipers, (both of them) and everything else came up
again. A few years later, I got hold of it, and Rebuilt/Restored it, and once again blew away TR6‟s
with impunity. It had very radical cams (straight up, open a long time, straight down-the ramps
were so steep is looked like they’d just am the camp followers -and the 350‟s came with a 15:1
piston”).
1959: Smaller 17-inch wheels. Coil ignition. Optional Airflow fairing with deeper front
mudguard. Forks modified. Oval oil pump cover plates on 500cc. 30cc got larger, re-shaped 3.75-
gallon gas tank, chain enclosure and larger, wider seven-inch front brake (the 500 retained its six
inch twin drum brake). New stylish gas tank, trials model gets heavier fly wheels, and exhaust is
tucked away, but continues with magneto.
1960: huge, one –piece alloy cylinder head (big head) casting plus new, larger chunky‟ tank
for 500. This is also the engine design used for the India Enfield bullet, coil ignition is introduced.
The Royal Enfield fury, produced at this time for the US market, is essentially the same bike as the
Bullet (both 350 and 500cc models), capable of reaching the 100 mph mark (a f 350cc Enfield tuned
by Steve Lindsell in the late 1970s reached 95.64 mph). It deferred from the bullet by having a the
bullets iron and a higher compression piston (8:9:1 instead of 7:3:1). It also had a flange for
mounting an optional rev counter, an 18– inch rear and 19-inch front wheel. Between 1959 and
1963, only 191 machines were made. The 500cc boasted a 40bhp output, up from the UK models
production of 27bhp.A 600cc model was also made for a short period.

1961: detachable end – cap fishtail silencer, trials model discontinued except by special
order.
1962: deeper rear mudguard. Both 350 and 500 models discontinued. The UK Company was
sold in 1962 and the bullet line discontinued. Enfield India continued to churn out bullets just the
way they were made in England in 1955. Forty years later they still do, with a few minor
modifications (signal lights, a 28m Mikuni card, 12-volt electric’s a better bench seat and in 1990.
twin leading – shoe brakes). While not the largest motorcycle manufacturer in India (they rank about
third, producing around 18,500 bikes a year but have plans to increase that to 25,000) they are one of
its oldest. Initial attempts to import 350 bullets into the UK in the 1970‟s (by the Slater brother and
later Eve sham motorcycles – according to one source the actual date of the first re-introduction was
1977), were unsuccessful. The bike wasn’t up to par and the exchange rate wasn’t very good. So
they were not as inexpensive as they are today. The Indian company had little interest in making
changes the few sales exports could garner.
In 1986, Raja Narayanan, a UK civil servant, returned to his home in India and started an
export farm for the company to bring the bullet back into England. He got his first 350 into England
that year. He was responsible for many of the production change that improved sales and quality
over the years. He responsible for many of the production changes that improved sales & quality
over the years. It was the prodigal son returning home. The bike appeared in UK motorcycle shows
in 1989 and at the classic bike show in Stafford in 1990. Canada started importing them three years
ago, and the US in 1995.
Twenty countries now import them. In late 1995, the Indian firm finally acquired the name
Royal Enfield as their own. The Canadian importer started putting the new decals on the tank in
early 1996. Recently Swiss engineer fritz Egli has been working with Enfield to improve
production for exports models. He also designed performance improvements for his own retail
sales bullets and has been discussing a five-speed transmission with the company. He designed a
535cc version, which produces 45bhp and 624cc racer (47c.bhp with a top speed to 160dph, 100
mph neither one has made it to North America….yet).

CLOSEOUT IN UK

Royal Enfield UK continued manufacturing motorcycles and came out with some more innovative
and powerful machines notably the Royal Enfield Meteor, Constellation and finally the Interceptor
700, before being sold to Norton-Triumph- Villiers (NVT) in 1968. Production ceased in 1970 and
the company was dissolved in 1971. Remaining tooling and equipment of the Redditch works were
auctioned off.
Meanwhile the Bullet 350 continued to be manufactured in India and by the 1980ӳ the
motorcycles were even exported to Europe out of India. Even after the motorcycle manufacturing
closed down the precision engineering division ran for some more time and even bicycles were
produced until quite late.
THE EICHER CHAPTER

In 1990, Enfield India entered into a strategic alliance with the Eicher Group, and later merged with
it in 1994. It was during this merger that the name Enfield India changed to Royal Enfield. The
Eicher Group is one of India's leading automotive groups with diversified interests in the
manufacture of Tractors, Commercial Vehicles, Automotive Gears, Exports, Garments,
Management Consultancy and Motorcycles. Since then, the Company has made considerable
investments in modernizing its manufacturing technology and systems.

In 1996, when the Government decided to impose stringent norms for emission Royal
Enfield was the first motorcycle manufacturer to comply, a tradition which has stuck on thus
making emission norms being one of the most important factors the company focuses on. Royal
Enfield is amongst the first few Indian companies to obtain the WVTA (Whole Vehicle Type
Approval) for meeting the European Community norms.

INFRASTRUCTURE AND TECHNOLOGY

To manufacture quality bikes that are well known worldwide for their reliability and
toughness state-of-the-art infrastructure is required, and that is just what Royal Enfield has done at
their Chennai manufacturing facility. An active in-house Research & Development wing is
constantly at work to meet changing customer preferences and the challenges of Indian and
International environment standards. When introducing a new product, this team undertakes all
related planning which includes a rigorous customer contact program, design, concurrent
engineering and testing processes. The Motorcycle Design team at Royal Enfield is well equipped
with high-end CAD/CAM workstations and the latest modelling software. Top-notch designers
work continuously to come up with innovative bikes designs to meet the market expectations.
Continuous rigorous testing of motorcycles and components is carried out in the Product
Development testing lab to come up with more improvements in enhancing the customer experience

MANUFACTURING

Royal Enfield's manufacturing operations go through a series of modernization and improvement


efforts, with a number of automated processes. The Company has put in place modern
manufacturing practices like Cellular layouts, Statistical process controls and Flexible manufacturing
systems.
The Chennai manufacturing facility has received the ISO 9001 certification and for managing
its operations in a clean and safe environment, it has obtained the ISO 14001-quality certification
and kaizens are implemented to ensure the quality levels are kept at an ever rising pace.
Royal Enfield ensures that all the components used in the bikes are sourced from the best vendors in
the Indian automotive industry, who are geared to supply according to the Company’s stringent
quality standards. The company works closely with all of its suppliers, giving them technical and
managerial support while maintaining practices like Direct-On-Line and Vendor Self- Certification.

MARKETING NETWORK

You can feel the pulse of your customers, only if you get close to them. This thought process has
driven Royal Enfield to set up has a wide network of 11 Brand Stores, 180 dealers in all major cities
and towns, and over 100 Authorized Service Centre. The Company also exports motorcycles to 42
countries like the USA, Japan, UAE, Korea, Bahrain, UK, France, Germany, Argentina and many
other countries through 40 importers and over 300 dealers across the globe

ROYAL ENFIELD REVVING UP

With the finest and brightest of teams in the country, comprising of management professionals and
a skilful, committed workforce, the Company has a unique and open culture, making Royal Enfield
a vibrant and responsive company. To its customers in India and elsewhere in the world, Royal
Enfield means more than just motorcycles; it's a sense of belonging to an exclusive community
with unfading passion, emotion and interest.
As the only motorcycle manufactured in India synonymous with adventure and leisure
riding, Royal Enfield has more recently stayed away from regular mass media advertising and has
concentrated more on building its brand around the values that the brand stands for. Having a Cult
status the Royal Enfield motorcycle is known for its Versatility, Uniqueness and is built to last.
Perceived as a machine in a class of its own and synonymous with Leisure and Adventure; riding
and charting up the miles.
Royal Enfield strongly promotes leisure motorcycling as a lifestyle and encourages the
Royal Enfield riders/owners to keep riding. In this regard, the company organizes annual events
and rides such as the Himalayan Odyssey, The Tour of Rann of Kutch, The Tour of NH 17
(Mumbai to Goa)The Tour of Rajasthan and the Southern Odyssey. It also organizes the Annual
festival of biking, Rider Mania in Goa which attracts Royal Enfield riders from all over.
AWARDS AND ACCOLADES:
-Apollo Auto India Awards 2010: Best Brand
-Zigwheels.com Viewers Choice Bike of the Year 2009
-Zigwheels.com Bike of the Year above 251cc
-NDTV Profit Car & Bike Awards 2010, 2012-13: Motorcycle of the Year above 250 cc.
-NDTV profit Car & Bike awards 2010, 2012-13: Best PR
Communications Team.
SWOT ANALYSIS
SWOT ANALYSIS of Royal Enfield:

SWOT Analysis

1. Size and scale of parent company

2. Effective Advertising Capability

3. High emphasis on R and D

4. Established brand name in the cruiser market

5. Established market distribution channel


6. Exports motorcycles to 31 countries like the
USA, Japan, UAE, Korea, Bahrain, UK, France,
Germany, Argentina and many other countries
Strength

1. Weight of the motor cycle can be an issue for


few customers.

Weakness 2. Mileage of high cc bikes is an issue

1. Two-wheeler segment is one of the most growing


industries
2. Export of bikes is limited i.e. untapped

Opportunity international markets

1. Strong competition from Indian as well as


international brands
2. Dependence on government policies and rising
fuel prices
3. Better public transport will affect two-wheeler

Threats sales
Competition

1. Bajaj Auto
2. Hero Motor Corp (Hero Honda)
3.TVS
4. Suzuki
5. Harley Davidson
6. Yamaha

Competitors 7. Ducati

COMPETETORS INFORMATION

MAJOR PLAYERS IN INDIAN TWO WHEELER MARKET


GROUP PLAYERS ATTRIBUTES COMPETITIVE
FORCES

A Bajaj Highly diversified - High buyer power

Hero Moto Corp Aggressive - High competitive


promotion rivalry
- High entry barriers

B TVS Selectively - Low entry barriers


diversified
- Narrow product lines
Aggressive
imply that aggressive
Promotion
promotions can eat into
market share
C Honda Selectively -High threat of
Yamaha diversified substitution (Rs 1 lakh
car)
Moderate Promotion
- Low entry barriers
MCKENSY'S 7S FRAME WORK

STRATEGY:

Royal Enfield Motors has started working on a new strategy with less waiting periods, more
frequent launches and capacity ramp-up, thereby leading to a significant growth after transferring
from its traditional set up to updated engine platform.
The company registered a growth of 45 percent in the export region with as many as 3,630 units
in 2012 in comparison to 2,953 units in 2011.
TRUCTURE: ORGANISATIONAL STRUCTURE

SYSTEMS:

The daily activities and procedures that staff members engage in to get the job done.
SHARED VALUE:

These are called “super ordinate goals” when the model was first developed, these are
the core values of the company that are evidenced in the corporate culture and the
general work ethic.
STYLE:

Royal Enfield Motors, the manufacturer of the Bullet motorcycle and a


division of the Rs 1,300 crore Eicher Group, is slated to come out with a
radically different street motorcycle, apart from newer versions of the
350cc 'Bullet Machismo' and 'Bullet Thunderbird'.
The division of Eicher is also looking at profitability in the
next fiscal, whilst working towards offering only two engine
options across its product portfolio, according to a senior company
official.
"The new bike will be radically different in terms of style and usage
patterns and the company is hoping for a launch in the next couple of
quarters". It is also looking to introduce different variants towards
existing models every six to seven months.

STAFF:

The training for new staff along with the new systems and processes has
begun. The new factory will have a new, state of the art paint shop which
is superior to most other manufacturers in India and will be at par with
international standards.

Many steps are being taken to improve working conditions for workers
as well. Also with growing popularity of the brand many passionate riders
will join the team for development and production. Also many ladies are
joining the company in general functions due to the change in image of
Royal Enfield motorcycles.

SKILLS:

The actual skills and competencies of the employees working for the company.
people at the Royal Enfield possess wide range of skills and are working towards the
development of the company

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