Case Study on

Royal Enfield
Presented by:
Panduranga G J
INTRODUCTION
 Royal
Enfield is a well known automobile
company that primarily deal in manufacturing
of motor cycle and cycles.

 Apart
from that, it produces Rifles, Lawn
movers , and Stationary engines etc.,
HISTORY
 In 1880 – Albert Eadie and R.W.Smith started
company by name “The Enfield manufacturing
company limited ”.
At Redditch , Worcestershire, England
 1880- In beginning they start manufacturing

bicycles and also supplying high wide range of

bicycles part in England.
 1890-Got brand name.

 1892-Produces their first bike in England .

 Play crucial role in WW-1(1914) and WW-2(1940)

by supplying motorcycles and rifles for the army.

Cont…..
 1932-Birth of Bullet.
 1949-Enfield make their INDIAN debut by

launching 350cc bullets in MADRAS MOTORS

(MADRAS).
 1994-Eicher Group acquired Enfield India co.

and changed name to Royal Enfield motors

limited.
Enfield Bicycles
 First they used to produce Bicycles.
 They also manufactured precision rifle parts

and supplied to Royal small Arms factory.

Evolution of Royal Enfield
 The word ‘Royal ’ was taken from ‘The Royal
Small Arms Company’
 Using this word Royal . Royal Enfield (RE) was

born in 1893 with the trademark made like a

Gun.
First Vehicle
 In 1898 the company made a first motorized
vehicle a ‘Quadricycle’
 By 1899 Tricycle ,Quadricycles powered by

Die Dion engines are launched.

First Motorized Bicycle
 In 1901 the RE produced first Motorized
Bicycle.
 The engine is mounted on front wheels and

drive the rear wheels through a belt.

Recast
 In 1904 the engine is moved inside the frame
 This became the standard configuration for

bikes .
Enfield Autocar
 The car manufacturing arm of Enfield
Company was established in 1906 in Redditch
 By 1907 Alldays and Onions Company

acquired cars wing of Enfield .

Own Engines
 In 1913 RE starts using its own engine –a
225cc 2-stroke single engine and a 425cc
V-Twin engine.
Rise of Bullet
 In 1932 first Bullet is made .
 It comes with a 4-valve single cylinder,

inclined engine with an exposed valve gear.

Service to Royal Army
 By 1939 WD/C 350cc single cylinder motor
cycles were given for service of Royal Army.
Flyin Flea
 ‘Flyin Flea’ or the ‘Airbone’ was a ultra-light
RE Motorcycle that was para-dropped along
with the troop during the World War-2.
RE enters India
 In 1953 RE entered India
 Indian Army ordered 800 350cc Bullets
 To full fill such a large deal RE made a

contract with Madras motors

 RE used to send all the parts of the bike and

Madras motors used to assemble them.

Enfield India Ltd
 By 1955 Madras Motors got license to make
Bullets and RE India Ltd was established .
Eicher acquires RE
 In 1990 RE nearly went bankrupt
 In 1994 Eicher group purchased RE
 From then RE brought its motorcycles to the

top of the motorcycle world

 Different models with different colour

variants have been launched.

Problems faced by RE
 The year 2000 could have decisive for RE when BOD
decided to shut down or sell off Royal Enfield chennai
motorcycle division. because of following reasons:
 Sales of bikes unit down to 2000 from 6000units
 Complaints about engine seizures, snapping of the
accelerator or clutch cables, electrical failures and oil
leakages.
 Many found them too heavy, difficult to maintain, with
the gear lever inconveniently positioned and a
daunting kick start.
 Due to launching of new fuel efficients bike by Hero
Honda.
Revival of Royal Enfield
 Appointed Siddharth Lal as CEO and MD of
Royal Enfield and EICHER Group.
 In 2005 as a part of revival effort siddharth Lal

appointed Ravichandran as CEO who had earlier

worked with both TVS Motor and Bajaj auto.
 Modern technology used, but vintage look

retained ,improved management practices and

both of them will make necessary changes in
engines, silencer and gears according to need
of customers .
Changes made during
Revival
 GEAR position changed from Right to Left with
adaption as per indian market and consumer
needs.
 Engine capacity RE is only in Indian market
offering 350+CC engine. They considered this
as strength and use as unique features.
 Multiple variant launched in different colours
providing choice to customer as per emotional
attribute.
 Aerodynamics and tyres: Due to heavy it was
always tough bike to travel for long journey.
Sales in between the decade
 2005-selling only about 25000 bikes every
year
 2010-selling 50000 bikes
 Launch of the Enfield Classic-caught the

fancy of customers
 Sales shot up six times in half a decade from

50000 units in 2010 to 300000in 2014

 Crossed the target of 450000 units in 2015.
After a decade 2016
 Over Rs15419.52 crore in revenues
 Net profit of Rs1451.94 crore
 Royal Enfield bring in about 80% of these

profits.
 Eicher Motors stock prices –Rs 224 in 2006 to

Rs 15612 in 2016.
Profits After Taxes (in
crores)
Specifications of Royal
Enfield
 Engine-350cc and 500cc
 No of cylinders-1
 Valves-Per cylinder 2
 Cooling System –Air cooled
 Starting Mechanism-Self/kick start
 Fuel tank capacity -13.5L
 Reserve fuel capacity-2.5L
 Mileage :40-45kmpl
Weight-180+ kg
 Length-2160mm
 Width-790mm
 Height-1090mm
 Wheelbase-1370mm
 Ground clearance- 135mm
 No of Gears-5
Models
1.Standard street category
 Bullet 500
 Bullet Electra
 Bullet 350
Models
2. Retro Street
 Classic Desert Storm
 Classic Battel Green
 Classic Chrome
 Classic 500
 Classic 350
Models
3. Cruiser
 Thunderbird 500
 Thunderbird 350
Models
4.Cafe Racer
 Continental GT
 Himalayan
Marketing Network
 13 Brand stores
 250 dealers in all major cities and towns
 200 authorized service centres
 Exports to 42 countries with 40 importers

and over 300 dealers across the globe.

Conclusions
 Good Design
 Many colour variants
 Creates a good attitude towards it
 Gives good mileage
 Enjoyable rides
 Reasonable prices.