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.
