CHAPTER 2

PROFILE OF THE COMPANY

INTRODUCTION
Royal Enfield was a brand name under which the royal Enfield cycle
company limited of Red ditch, Worcestershire sold motorcycles, bicycles ,lawn
movers and stationary engines which they had manufactured Enfield cycles
company also used the brand name Enfield without royal . The first royal Enfield
motorcycle was Build in 1901. The Enfield cycle company is responsible for the
design and original production of the royal Enfield bullet the longest lived
motorcycle design in the history. Enfield’s remaining motorcycles business
become part of Norton Villiers in 1967 and that business closed in 1978. A former
subsidiary continues to manufacture royal Enfield motorcycles In India.

HISTORY
George Townsend set up a business in 1851 in red ditch making
sewing needles. In1882 his son, also named George started making components
for cycle manufactures including saddles and forks. By 1886 completed bicycles
were being sold under the name Townsend and ecossaise. This business suffered a
financial collapse 1891. Albert Eddie sales manager of Birmingham’s Perry &
co Ltd , pen makers who had begun to supply components for cycles , and Robert
walker smith , an engineer from D. Ridge & co were chosen by Townsend’s
bankers to run the business then in 1892 the firm was re-incorporated and named
Eddie manufacturing company ham limited ;it was based in snow hill,
Birmingham. Later in 1907 after serious losses from their newly floated Enfield
auto car business, Eddie manufacture and its pedal cycle component business was
absorbed by BSA. Years later the BSA chairman was to tell share holders that the
acquisition had “done wonders for the cycle’s department”. Eddie still retained a
separate identify when Raleigh bought BSA’s cycles interests in 1957.

Mid 19th century England the firm of George Townsend & co opened
its doors in the tiny 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 up on the pedal-
cycle trade.

Little did they know then it was the beginning of the making of a
legend. Soon, George Townsend & Co. was manufacturing its own brand of
bicycles.

And in 1983 its products began to sport the name “Enfield” under the
entity Enfield Manufacturing company Limited with the trademarks ‘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
HEADQUATERS Redditch Worcestershire ,England
KEY PEOPLE Founders Albert Eddie and Robert walker smith
PRODUCTS Royal Enfield Clipper, Crusader, Bullet, Interceptor
ENFIELD
Eddie had won contracts to supple precision parts for fire arms to the
government’s long-established Royal Small Arms Factory at Enfield, Middlesex,
now the London Borough of Enfield with its offshoot in Spark brook and has
assumed the brand name Royal Enfield, In 1896 they also incorporated a new
subsidiary company, They New Enfield Cycle Company Limited, to handle much
of the cycle work and in 1897 Enfield making complete cycle as will parts for
other assemblers took all the cycle assembly work from Eddie, Enfield diversified
into motor cycle, 1901 and motor cars, 1902. The motor department was put into
a separate subsidiary, Enfield Auto Car Company limited incorporated in 1906 and
established in new works at Hunt End, Red ditch. However Enfield Auto car after
just 19 months reported a substantial loss and, aside from Eddie himself,
shareholders were unwilling to provide more capital so in early 1907 Eddie sold
his control of Eddie Manufacturing to BSA. Albert Eddie and Robert Walker
smith had been appointed directions of BSA before the proposed sale has been put
to shareholders. The new combined BSA and Eddie business manufactured
“military and sporting rifles, (pedal) cycle and cycle components, motor – cars etc.
“BSA and Eddie cycle specialties”. But there were still Eddie shareholders
alongside BSA in 1957.

PROFILE OF THE ORGANISATION

Royal Enfield is the makers of the famous Bullet brand in India.
Royal Enfield (India) is among the oldest bike company. It stems from the British
manufacturer, Royal Enfield at Red ditch. 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 kids for
the UK and assembled in Chennai. After a few years, 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.

Royal Enfield made continuously incorporating new technology and

system in its bikes. In 1996, when the Government of India imposed stringent
norms for emission, Royal Enfield was the first motor cycle manufacture 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 then oldest motorcycle model in the world still in
production and Bullet is the longest production run model.

PRODUCT
By 1899, Royal Enfield were producing a quadric cycle – a bicycle
modified by adding a wrap around four wheeled frame, retaining a real rider-saddle
with handlebars – having a front-mounted passenger seat, driven by a rear –
mounted Dion engine.

After experimenting with a heavy bicycle frame fitted with Minerva

engine clamped to the front down tube, Enfield built their first motorcycle in 1901
with a 239 cc engine. A light car was introduced in 1903 powered by either a
French Ader V-twin or De Dion single cylinder engine. In 1906 car production
was transferred to a new company, the Enfield Auto car co Ltd with premises in
Hunt End, Red ditch. The independent company only lasted until 1908 when it
was purchased by all days & onion. In 1907 Enfield merged with the all day &
onions pneumatic engineering co. of Birmingham, and began manufacturing the
Enfield – all day automobile. By 1910, royal Enfield was using 344cc swiss moto
scorched V- Twinn engines, or large –displacement JAP and Vickers –Wellesley
engines . In 1912, the royal Enfield model 180 sidecar combination was introduced
with a 770cc V-twin JAP engine which was raced successfully in the Isle of man
TT and at brook lands.

FIRST WORLD WAR (1911-1921)

In 1914 Enfield supplied large number of motorcycles to the British
war department and also won a motorcycle contract for the imperial Russian
government. Enfield used its own 225cc two-stroke single and 425cc V- twin
engines. They also produced an 8 hp motorcycle sidecar model fitted with a
Vickers machine gun.

SECOND WORLD WAR (1939-1945)

During Second world war. The Enfield cycle company was called
upon by the British authorities to develop and manufacture military motorcycles.
The models produced for the military were the WD/D 250 cc SV, WD/G 350 cc
OHV and WD/L 570 cc SV, One of the most well known Enfield’s was the
designed to be dropped by parachute with airborne troops.

ENFIELD IN INDIANS (Since 1949)

From 1955 to 1959,Royal Enfield’s were painted red, and marketed in
the USA as Indian motorcycles by the brock house corporation who had control of
the Indian sales corporation (and therefore Indian motorcycles) and had stopped
manufacturing all American Indians in the springfield factory (ROYAL ENFIELD
SINCE 1949)
ENFIELD INDIA 350 cc –MADRAS
Royal Enfield Motorcycle had been sold in India since 1949. In 1955,
the Indian government looked for a suitable motorcycles for its police and army,
for use patrolling the country’s border. The Bullet was chosen as the most suitable
bike for the job. The Indian government ordered 800 350-cc model Bullets, an
enormous order for the time.

MARKET SEGMENT
Interview with Mr. Siddhartha Lal about Market Segment On April
20, 2017, the 250-500cc motorcycle segment is growing exponentially. The latest
entrants being Bajaj dominar 400 and the Yamaha FZ25. At the time of dominar
400 launch, Mr.RajivBajaj, Md.Bajajauto had famously started that those who
want a slow bike can buy Royal Enfield and those who want a fast bike can buy a
Bajaj dominar

It seems like majority of buyers in the segment still prefer Royal

Enfield, or a slow bike, in the words of Mr. Bajaj. Royal Enfield had never replied
to Mr. Bajaj’s. Royal Enfield had replied to Mr. Bajaj’s statements made regarding
Royal Enfield at the dominar 400 launch, until now.

Mr. Siddhartha Lal has finally spoken about rivals catching up. In
recent interview with economic times, Mr. Lal revealed that they are not worried
about the competition catching up. In spite of dominar400 being around for about 4
months now, there has hardly been any effect on the sales of Royal Enfield, which
continue to growth month after month.
 Currently, Royal Enfield has 96% share in the 250-500cc segment.
Their sales last fiscal stood at 6, 51,107 units. Even this year, post dominar 400
launch, sales of Royal Enfield have continued to grow. This in spite of fact that
many of their new Himalayan buyers have complained of reliability and quality
issues. In the interview, the topic about quality/reliability issues was not raise.

Royal Enfield believes that the 250-500cc segment market is going to

grow by another 20% in the coming 4 years. By 2021, this segment will account
for total motorcycle markets 10% share, which is huge opportunity with both
hands. They plan to launch at least one motorcycle every 12 months.

Mr. Lal said in the interview “there will be a lot of players interested
in joining us but we are going to sit back and let them take the market over. The
market will grow even faster with new players but we will retain enormous market
shares. Some are trying too much too soon, trying to do in one year what we took
10 years to accomplish. We have been single-handedly growing this business for
more than 10 years and we now have the expertise, money power and inclination to
bring revolutionary products.”

TYPES OF PRODUCT

THUNDER BIRD 350 AND 500

BULLET CLASSIC 350 AND 500

BULLET 500

BULLET ELECTRA
BULLET STANDARD 350

ROYAL ENFIELD HIMALAYAN

ROYAL ENFIRLD RETRO

EVOLUTION OF ROYAL ENFIELD

1970
His Enfield Cycle Company in the UK goes out of business the remaining
interceptor engines are sold to the Rickman Brothers and fit in proprietary Metisse
frames. Approximately 90 of these machines are built. Production in India
continues without interruptions.
 1977
Enfield India begins to export 350cc bullets. A deluxe model with extra
chrome plating is also made for export.

1989
A new 24bhp 500cc bullets is released. The bike is primarily aimed at export
markets, where side by side with the 350cc it is available in classic, deluxe and
superstar trim.
 1994

1970
His Enfield Cycle Company in the UK goes out of business the remaining
interceptor engines are sold to the Rickman Brothers and fit in proprietary Metisse
frames. Approximately 90 of these machines are built. Production in India
continues without interruptions.
 1977
Enfield India begins to export 350cc bullets. A deluxe model with extra
chrome plating is also made for export.

1989
A new 24bhp 500cc bullets is released. The bike is primarily aimed at export
markets, where side by side with the 350cc it is available in classic, deluxe and
superstar trim.
 1994
The Eicher group acquires Enfield India limited. The company is renamed
Royal Enfield Motors Limited.

1997
40 Royal Enfield Motor cycles travel from New Delhi to Khardung La-the
world’s highest motorable pass. This was the first Himalayan Odyssey from Royal
Enfield.
 2001
The ‘Dare Devils’ the motorcycling display team of the Indian army’s crops
of Signals, Jabalpur, forms a human pyramid of 201 men on ten 3500cc Royal
Enfield motorcycles, riding a distance of more than 200 meters.
50th ANNIVARSARY

2005
The Royal Enfield celebrates its 50th anniversary in India. Two
commemorative bikes, a Thunderbird and a 50 Electra, are made
INDIA’S FIRST 500cc

2008
 Royal Enfield export the ‘classic’, India’s first 500cc EFI Euro III complaint
motorcycle, to European markets. The bike features fuel injection, a catalytic
converter, hydraulic valve lifters and an electric starter.
THE FIRST 500cc UCE ENGINE

2009
The 500cc UCE engine is launched in India. The retro-styled “Classic”
version achieves immediate cult status and sales grow rapidly.

2011
The company launches its first annual ‘ONE RIDE’ where all Royal Enfield
riders across the world are encouraged to go for a ride on the first Sunday in April.
Royal Enfield acquired 50 acres of land at Oragadam near Chennai for its new
plant.
ROYAL ENFIELD LAUNCHES ITS 1ST HIGHWAY CRUISER AS
THUNDERBIRD 500

2012
Royal Enfield launches its first highway cruiser, the all back Thunderbird
500. Work in the new Orgadam factory continues briskly while the Tiruvottiyur
plant sets new production records.

THE ALL NEW 535cc CONTINENTAL GT

2013
49 years after the first Continental GT, Royal Enfield launches the all new
535cc Continental GT, a cradle frame motorcycle built in true café racer style.
 2014
Matt Caprl’ssouped-up Royal Enfield Continental GT, ridden by Nadine de
Freitas, hit the salt flats of Bonneville and set a new land speed record in the 500
MPPS (Modified Pushrod Partially Streamlined) category, clocking an average
speed of 97.69MPH.

2014
We open exclusive flagship stores in new Delhi and East London. These
stores offer exclusive motorcycling clothing and accessories, including casual
clothing and protective equipment.
 Brothers Kishore and Jayakumarare the only two people in the world who
hand paint every bullet canister that leaves the workshop, using just two deft
strokers.