marketing strategy of Royal Enfield

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Final Report
on
ROYAL ENFIELD
Amity University Uttar Pradesh
In partial fulfilment of the requirements for the award of the degree
of
Bachelor of Business Administration
by
DEVASHISH KASHYAP
A3906418249
Under the guidance of
Mr. ARPAN SINHA
AMITY SCHOOL OF BUSINESS
AMITY UNIVERSITY UTTAR PRADESH

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Declaration
I, Devashish Kashyap, student of BBA (Section-C) hereby declare that the project titled
“ROYAL ENFIELD” which is submitted by me to Department Business Administrative,
Amity School of Business, Amity University Uttar Pradesh, Noida, in partial fulfilment of
requirement for the award of the degree of Bachelor Business Administration, has not been
previously formed the basis for the award of any degree, diploma or other similar title or
recognition.
The Author attests that permission has been obtained for the use of any copyrighted material
appearing in the Dissertation / Project report other than brief excerpts requiring only proper
acknowledgement in scholarly writing and all such use is acknowledged.
Date: 17/06/19
Devashish
A3906418249
Section-C (2017-21)

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CERTIFICATE
This is to certify that Mr Devashish, student of BBA General in has carried out work presented
in the project of the work entitle’’ROYAL ENFIELD” as a part of First year program of
Bachelor of Business Administration from Amity University, Uttar Pradesh, Noida under my
supervision.
MR. ARPAN SINHA
Mr. Faculty Name
Amity School Of Business
AUUP

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ACKNOWLEDGEMENT
The satisfaction that accompanies that the successful completion of any task would be
incomplete without the mention of people whose ceaseless cooperation made it possible, whose
constant guidance and encouragement crown all efforts with success. I would like to thank Prof
(Dr) J.K SHARMA, Head of Department-CSE, and Amity University for giving me the
opportunity to undertake this project. I would like to thank my faculty guide Mr. Arpan Sinha
who is the biggest driving force behind my successful completion of the project. He has been
always there to solve any query of mine and also guided me in the right direction regarding the
project. Without her help and inspiration, I would not have been able to complete the project.
Also I would like to thank my batch mates who guided me, helped me and gave ideas and
motivation at each step.
Devashish

5. Page | 5
TABLE OF CONTENTS
S.NO. TOPIC PAGE NO.
1 HISTORY 6-7
2 PRESENT SCENARIO 8-9
3 OPERATING INDUSTRY 10
4 PRODUCTS 11-13
5 BOARD OF MEMBERS 14
6 GEOGRAPHICAL PRESSENCE 15
7 COMPETITORS 16-18
8 MERGERS AND ACQUISITIONS 18
9 CONTRIBUTION TO GDP 19
10 FINANCIAL ANLYSIS 20-29
11 ORGANISATIONAL PRACTICES(HR
POLICY)
30
12 MARKETING MIX
SEGMENTATION
SWOT ANALYSIS
31-33
13 Conclusion 34

6. Page | 6
History of Royal Enfield
1891-Albert Eadie and R.W.Smith started the Eadie Manufacturing company,which later went
on to become the Enfield cycle company at Redditch.Townsend Cycle company in Redditch was
taken over by them to form the Enfield Manufacturing Company Ltd.
1893-Started supplying precision rifle parts to the Royal Small Arms factory in
Enfield,Middlesex.To capitalize on this prestigious contract the world ‘Royal’ is added and the
legendary ‘MADE LIKE A GUN’ trademark is coined.
1898- R.W Smith designs a prototype motorized vehicle, a four wheel bicycle known as
quadricycle.
(source-
https://www.google.com/search?rlz=1C1ASUM_enIN772IN772&biw=1366&bih=615&tbm=isch&sa=1&ei=VUnqXO_dCqLWz7sP44CcsAU&
q=royal+enfield+1899&oq=royal+enfield+1899&gs_l=img.3...23116.31196..32794...1.0..0.254.1235.0j4j2......0....1..gws-wiz-
img.......0i67j0j0i8i30j0i24.pRjJ7riVf90#imgrc=-5bm9jSLE787VM:)
1909 - Royal Enfiled showcases its 2.5 HP V-twin powered engine motorcycle at the UK
motorshow.

7. Page | 7
First British Motorcycle to employ rubber cush drive system in the rear wheel to minimize chain
snatch. It was a separate hub with a series of rubber blocks and provided the chance of greatly
increased chain life.This innovation was first to be sold and copied by countless other
motorcycles.
1913 - Indigenously developed the first - 225cc and 2 stroke & 3 HP/425cc ioe V-Twin engine.
First British Motorcycle to feature Dry Sump Lubrication with an automatic geared Oil Pump.
Every other manufacturer used pilgrim-type hand operated pump with its total loss lubrication
system.
1914 - RE was called on to supply motorcycles to the British War Dept in the wake of the First
World War ( known as The Great War). Belgian government ordered 50 3 hp Enfield
motorcycles for despatch riders.
1933 - Major Frank Smith takes over the management of the company.Develops its 3-valve,
488cc single cylinder engine. The machine features for the first time an enclosed valve gear.1935
- Enters its 500cc 4-valve racing model in the senior TT the last time. Changes its engine to 3-
valve the interval oil tank is now placed in front of the crankshaft
(source-
https://www.google.com/search?rlz=1C1ASUM_enIN772IN772&biw=1366&bih=566&tbm=isch&sa=1&ei=eEnqXJ3bGZbWz7sP09aQoAg&q
=royal+enfield+1935&oq=royal+enfield+1935&gs_l=img.3..0i8i30.1642.4564..4841...1.0..0.301.1636.0j1j5j1......0....1..gws-wiz-
img.......0j0i24.cDqAQZFSw5k#imgrc=166vApclLG7C5M:)
RE receives a massive order from the Indian Army to supply a total of 800 ,350cc bullets ohv
singles.The performance,reliability and ease of maintenance of the bike made it suitable for
police and army for patrolling the country's border.The bikes had to be 'ready for action' , which
meant each engine needed to be seize proof.

8. Page | 8
1988 - Enfield India ties up with Zudapp to manufacture Fury (163cc),Explorer (50cc) and the
Silver Plus (50cc). Explorer becomes 1st motorcycle in India to sport a disc brake.
Present Scenario/Growth pattern
There are many consequences about Royal Enfield However I disagree with all those who say
its the best bike or it is the most comfortable. Infact if you are a very active person (ride a lot on
your bike) and Enfield is your only mode of transportation in a city with heavy traffic then
probably you made a wrong choice. In terms of comfort it becomes even worse if the road is bad.
Talk about speed and you won't dare crossing 110kmph and even if you did then be careful while
braking cause it skids like hell. It kind of feels painful when you try to move a 190KG bike after
a hectic day.
If you think any of the above reasons made you reconsider buying an enfield and then just drop
the idea :) Enfield is not about being the best. Its a bike with which you connect and you connect
for good. As long as you ride it becomes a part of your character. This bike is not about speed or
comfort. Its just about feeling the road and feeling it with a flavour. There are certain specific
characteristics about enfield that makes it different. I don’t know they are pros or cons, but those
are the things that make you love your RE.
1. Feel of the sound: One of the best sound you would like to hear while riding. Add the mild
vibration synced with the thump and you are in heaven. Infact the Thump Sound has got 3
different characters, a. ride the bike yourself, b. take the back seat and let your friend ride it, c.
Stand near a RE. Everytime the sound is different and its good. On a lonely road this the best
music to your ears.
2. Enjoy the momentum: RE is a damn heavy bike. That may be a dead weight if you're not
riding it but as soon as you ignite the engine its a different story. It becomes really easy to handle
at a speed above 2okpmh. With all its heavy weight the grip is very good and it gives a
confidence to take difficult manoeuvres. The weight also becomes a problem in case of sudden
braking above 60kmph. But thats a very specific scenario. Probably RE should consider adding
ABS to all its models.

9. Page | 9
3. Bare minimum and Simplistic design, fits anyone and everyone: Nothing about RE is flashy.
But still you get enough attention at every signal you stop. The best part I no matter how your
physical appearance is, once you are on a RE you just blend in with the whole package.
4. Ageless: Enfield is like a wine. It never ages. Infact it does not even depreciate much in value
if you take proper care. You can probably buy an enfield when you are 25 and keep riding it till
you are 50 and then pass it on to your kids :)
5. Highly efficient: Technically speaking currently RE is making on of the highly efficient
engines in the market. People crib a lot about fuel efficiency and power. But they don’t realise
that when a 500cc engine gives constant mileage of 30kmpl and a power of around 27bhp then
you are stupid to expect more. The best part of RE engines is that they deliver high power on low
RPMs. That is the reason that they consume less fuel and and that is also the reason that Enfield
bikes are the ride of choice in the mountains of oxygen deficit Leh-Ladakh. Low RPM means the
engine requires lesser oxygen for combustion to deliver the same amount of power which other
bikes deliver at much higher RPM. I don’t think there is any other engine in the market that can
match with these specs.
(BTW riding an Enfield in Leh-Ladakh is the best experience I ever had with RE)
6. Heavy duty chassis: RE body is build like a tank. Things do become lose and fall off if you
don’t service your bike regularly. But when you ride it be sure you are riding one of the toughest
chassis in the market.
Registering identical volumes month-on-month, Chennai-based motorcycle maker Royal
Enfield posted strong sales of 74,477 units in June 2018, a growth of 18 per cent over 63,160
units sold during the same period last year. The motorcycle maker has been posing impressive
numbers every month with sales slowly and steadily heading towards the 80,000 units per month
mark. For June 2018, Royal Enfield's domestic sales stood at 72,588 units, growing by 18 per
cent as against 61,671 units in June 2017. Exportsn the other hand, grew by 27 per cent, up from
1489 units in June last year to 1889 units shipped.

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Operating Industry
Royal Enfield developed its Machismo A 350 bikes in association with AVL, Austria and
Lightning 535 in association with Fritz Egli of Switzerland Royal Enfield Motors, is a division of
the Rs 1,000 crore Eicher Group which has diversified business interests in auto engineering,
tractors and gear boxes.
In the Lightning range, it has 535 cc bike called Cruiser which costs around Rs 69,000. The
division plans to introduce another bike in the Lightening range shortly. While institutional sales
constitutes around 12 per cent of its total sales, the rest is from retail.
:ROYAL ENFIELD HAS 18 company oriented stores and
around 705+ dealers in India.
:THERE ARE 16 STORE DEALERS IN BANGALORE
FOR ROYAL ENFIELD.
ROYAL ENFIELD HAS TAKEN THE 5TH POSITION IN
SALES OF MOTORCYCLE OVERTAKING YAMAHA.
:Royal enfield also organizes and supports many motorcycle
events around the world.

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PRODUCTS
Bike Model Power year Description
Bullet 350 346 cc
1955–
present
Originally started manufacturing in 1955 with 350 cc iron-
barrel engine and 4-speed Albion gearbox. Bullet
Continental sold in USA in 1990s with left shift 4-speed
gearbox. Attained the Unit Construction Engine in May
2010. Many submodels introduced during its lifespan like
Bullet Superstar. In 2010, the classic iron-barrel engine was
replaced with the 350 cc UCE engine. Bullet 350 is the
cheapest of all the Royal Enfield models and is devoid of an
electric starter, front disc brake, and gas filled shocks. Only
available in black with gold pinstripes.
Bullet 500 499 cc
1990–
present
Historically sold worldwide in different variations with
both 4-speed and 5-speed gearboxes (The 5-speed iron-
barrel engine model was sold under the name Sixty-5). In
2009 iron-barrel engine production came to an end but the
B5 export model, with a fuel-injected UCE engine, is sold
as the Bullet 500 in almost all international markets. It is
currently available in forest green and glossy black colour
schemes, and features unique silver petrol tank decorations.
Electra
346/499
cc
2001–
present
Indian market only model with 346 cc classic engine. 4-
speed or 5-speed gearbox. Later models with electric start
and TCI ignition. Attained the UCE engine in 2010 and is
now known as Electra Twinspark. Was available on the
export market with a classic carburettor-equipped 500cc

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engine as the Electra X prior to Euro-4 legislation halting it.
Thunderbird 350 346 cc
2002–
present
Cruiser style motorcycle that was a big hit to command
almost half the domestic sales.[10]
Attained Euro-4
compliant Unit Construction Engine(UCE) in 2008 and was
rechristened Thunderbird Twinspark.[11]
In 2013 it
underwent a major facelift introducing digital speedometer
and fuel gauge along with projector headlamps. Indian
Market only model.
Classic 500 499 cc
2010–
present
With Euro-4 compliant Unit Construction engine. Both
Indian and International markets. Sold under the model
name C5 in most International markets. Features include
fuel injection, solo seat and 18-inch rear wheel. Several
limited edition and special colour schemes have been
available for this model at various times, notably the
current-modelC5 Chrome, military tan and green, as well
as limited-edition Squadron camouflage paint schemes.
Classic 350 346 cc
2010–
present
Recently made available in the export market with a Euro-4
compliant Unit Construction engine. Equipped with
UCALBS29 carburettor and twinspark ignition. Shares
styling with the Classic 500 series of motorbikes.

13. Page | 13
Continental GT 535 cc
2014–
present
Features include a fuel-injected 500cc unit-construction
engine which has been redesigned and bored out to 535cc,
and cafe racerstyling inspired by the historic 250cc Royal
Enfield Continental, which was produced between 1963
and 1968. Equipped with Brembo 300 mm front disc brake
and Pirelli Sports Demon tyres in factory configuration.
The double cradle frame developed by Harris Performance
UK, and Paioli gas-charged shock absorbers with adjustable
preload contribute to a more stable ride. Features a semi-
digital console and electronic fuel gauge.
Himalayan 411 cc
2016–
present
Entry level dual-purpose adventure bike. All-new engine,
411 cc, referred to as the long-stroke "LS410". 5-speed
constant mesh transmission. Front/rear disc brakes.
Thunderbird
350x
349cc
2018-
present
350 cc variant of Thunderbird x. Digital console, electronic
fuel gauge, projector headlamps and tubeless wheels.

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Board of Members
 Siddhartha Lal
Managing Director
Siddhartha Lal is the Managing Director of Eicher Motors Ltd., the flagship company of Eicher
Group in India. Siddhartha has also been the Chief Executive Officer of Royal Enfield and the
Chairman of VE Commercial Vehicles (VECV); a joint venture between Volvo group and Eicher
Motors Ltd. (EML).
From July 2008 to July 2010, Siddhartha was the CEO of VE Commercial Vehicles (VECV).
VECV is the third largest Commercial Vehicles' (CV) player in India and has ambitions to drive
modernization in commercial transportation and become a leading trucks and buses company in
India and emerging world markets. During 2000-2004, in his tenure as CEO of motorcycle
manufacturer Royal Enfield (a division of EML),Siddhartha helped revive the company's
fortunes and also strengthened stakeholders' involvement with the brand.
 Lalit Malik
Chief CommercialOfficer,RoyalEnfield
Lalit has been with Eicher Motors for over 8 years and his sharp business acumen and
organisational leadership has helped the organisation in becoming one of the most profitable
motorcycle makers in the world. Apart from heading the finance function for Eicher Motors
Ltd, he is also leading the India and global business functions for Royal Enfield. In a short
span of time, he has contributed in scaling up the organisation in India and in global markets.
 Vinod K. Dasari
Whole-time Directorand CEO of RoyalEnfield
Mr.Vinod K Dasari is amongst the top few CEOs in India with a proven track record of
managing complex businesses globally.
Geographical Presence

15. Page | 15
In the financial year 2017-18, Royal Enfield sold whopping 8 Lakh+ motorcycles all over India.
In comparison in FY 2016-17 it found 6.5 Lakh takers – inferring an unrealistic growth of 23
percent. ‘Unrealistic’ because we are talking about motorcycles between 1-2 Lakhs!
However, their exports are limited to only a handful of units as of now. Despite the fact that there
were reports of new international Royal Enfield centres opening every other month, they were
only able to sell 1878 units in the month of March 2018 and around 19,264 units in FY 2017-18
– which is only about 2.4 percent of their domestic sales!
In a recent announcement, Royal Enfield said that they have over 540 dealerships in
international markets in 50 countries and 36 exclusive stores.
 These numbers infer that Royal Enfield could sell an average of only 36 motorcycles
per dealership in one full year (considering that all the dealerships mentioned are
functional and are selling RE branded bikes).
 Further, it means that they could sell only an average of 385 motorcycles per country
last fiscal.
Competitors

16. Page | 16
 Bajaj Dominar400
The Bajaj Dominar 400 was launched in India as the most powerful motorcycle from
Bajaj Auto on December 15 2016.
Bajaj has positioned it slap bang in Royal Enfield territory.
It is powered by a 373 cc, single cylinder 4 stroke engine based on the KTM 390 Duke.
The engine is tuned to make 34.5 bhp of power and 35 Nm of peak torque.
Source-
https://www.google.com/search?rlz=1C1ASUM_enIN772IN772&biw=1366&bih=615&tbm=isch&sa=1&ei=htnqXKbnFKKFmge1gpTADg&q=
bajaj+dominar+comparison+with+bullet&oq=bajaj+dominar+comparison+with+bullet&gs_l=img.3...13784.25159..26064...0.0..1.1769.9215.0j2j
11j1j1j1j2j1j1......0....1..gws-wiz-img.......0i24.oMX3p0O4S1M#imgrc=Q35aSZ0_PVa4XM:
KTM DUKE 390 KTM 390 was launched in India in November 2016 and is priced at Rs.2.2 lakh,
the KTM 390 DUKE breathes life into values that have made
motorcycling so amazing for decades.

17. Page | 17
 JAWA Yezdi
In spite of being out of production for a few decades, Jawa and Yezdi motorcycles enjoy
a special place in the hearts of many motorcycle enthusiasts. These motorcycles were a
preferred choice of many commuters who wanted their motorcycles to be fun to ride.
Source-
https://www.google.com/search?rlz=1C1ASUM_enIN772IN772&biw=1366&bih=566&tbm=isch&sa=1&ei=nt7qXPC6MY7Vz7sPw
u6U8Aw&q=JAWA+YEZDI+2019&oq=JAWA+YEZDI+2019&gs_l=img.3..0j0i8i30l3j0i24.33905.37129..37530...1.0..0.360.1574.0
j1j3j2......0....1..gws-wiz-img.......0i67.C2B1pJI0HXs#imgrc=xp1gRwqWMM6dgM:
Best part is they are back to the market again with the help of Mahindra motors, Recently
they reveled the engine and expected to be launched in 6 months. This bike will be direct
competitor for RE and this will cause reduce in sales.
 UM Renegade
UM’s line-up for India consists of just three cruiser motorcycles. Christened as the Renegade
series, all three bikes will be powered by a 280cc, Their quality is poor, but they are changing

18. Page | 18
their quality and coming up with issues rectified.
They can give good competition in future days when they are able to come with good quality
and issues fixed completely.
Mergers and Acquisitions
Shares of Eicher Motors were trading higher by 2% at Rs 17,215 on the BSE in otherwise
weak market after Royal Enfield, a division of the company, said it acquired UK based
Harris Performance Products.
Harris Performance is one of the leading experts in designing and manufacturing of
specialised high performance motorcycle chassis and components.
Under the terms of the deal, Royal Enfield will acquire all assets, employees, trade names,
technical know-how and intellectual property of Harris Performance Products, the company
said in a statement.
Alongside successful relationships with the Royal Enfield brand, Harris Performance has
been the only manufacturer from UK to have been officially commissioned by Yamaha and
Suzuki to design, develop and manufacture race bikes for Grand Prix and World Superbike, it
added.
The stock opened at Rs 16,965 and hit a record high of Rs 17,269 on the BSE. A combined
84,194 shares changed hands on the counter till 1427 hours on the BSE and NSE. The S&P
BSE Sensex was down 2% at 26,954 points.
Contribution to GDP

19. Page | 19
 Royal enfield an automobile co. has grown its sales at 55% CAGR, it directly competes with
bajaj auto and its is evident that bajaj has lost its market share to Royal Enfield.
 TVS motors and Royal enfield control 93% of the market. Hero motocorp is the leader with
50% market share, Splendor is the largest selling motorcycle in the country with sales of 2.5
million units in FY17.
 TVS and Royal enfield have market shares of 7% and 6% respectively.
 The Indian automobile industry is one of the largest in the world. It contributes 7.1% to GDP
and provides employment to 29 million people and contributes 13% to excise revenue.
Financial Analysis of at-least 3 years

20. Page | 20
 CASHFLOWSTATEMENT
 FOR THE FIFTEEN MONTHS ENDED MARCH 31, 2016
RS. IN CRORES
Particulars For the fifteen
months
ended March 31,
2016
For the year
ended December
31, 2014
A.CASH FLOW FROM OPERATING ACTIVITIES
Profit before tax 1,769.58 798.03
Adjustments for:
Depreciation and amortisation expenses 137.73 50.16
Profit on sale of fixed assets (0.06) (0.27)
Fixed assets discarded 1.35 0.09
Dividend on unquoted non trade current investments (1.83) (4.84)
Rent income (3.39) (2.70)
Loss on sale of fixed assets 0.12 0.55
Dividend on long term unquoted trade investment in subsidiary
company
(105.40) (40.80)
Profit on sale of unquoted non trade current investments (58.33) (60.75)
Interest income (4.07) (2.57)
Finance costs 1.41 1.67
Operating profit before changes in working capital 1,737.11 738.57
Changes in working capital:
Adjustments for (increase) / decrease in operating assets:
Inventories (95.23) (61.29)
Trade receivables (35.43) 1.43
Short-term loans and advances 1.19 (25.17)
Long-term loans and advances (4.57) (4.60)
Adjustments for increase / (decrease) in operating liabilities:
Trade payables 252.31 168.82
Other current liabilities 97.66 84.10
Other long-term liabilities 1.35 0.74
Short-term provisions 10.91 5.50
Long-term provisions 18.06 3.34
Cash generated from operating activities 1,983.36 911.44
Direct taxes paid (518.65) (225.48)
Net cash flow from operating activities (A) 1,464.71 685.96
B.CASH FLOW FROM INVESTING ACTIVITIES
Purchaseoffixed assets (Includingcapitalwork-in-progress andPre-operative
expenditure)
(499.31) (371.36)

21. Page | 21
Sale of fixed assets 0.60 1.47
Investment in subsidiary company (17.07) -
Investment in a joint venture company (108.80) (75.00)
Net investment in unquoted non trade current investments 207.31 (91.68)
Proceeds from sale of unquoted non trade non-current investments 100.00 -
Investment in non trade non-current investments (869.10) (150.00)
Profit on sale of unquoted non trade current investments 58.33 60.75
Dividend on long term unquoted trade investment from subsidiary
company
105.40 40.80
Dividend on unquoted non trade current investments 1.83 4.84
Investment in non current fixed deposit under lien (net) 5.33 (22.74)
Rent received 3.34 2.70
Interest received 3.75 2.07
Net cash flow from investing activities (B) (1,008.39) (598.15)
RS. IN CRORES
Particulars For the fifteen
months
ended March 31,
2016
For the year
ended December
31, 2014
C.CASH FLOW FROM FINANCING ACTIVITIES
Increase/ (decrease) in short term borrowings (net) 22.57 (4.00)
Interest paid (1.41) (1.67)
ProceedsfromissueofequitysharecapitalunderESOPScheme(including
securitypremium)
4.81 7.86
Dividend paid (397.58) (80.96)
Tax on dividend paid (61.08) (6.86)
Net cash flow from financing activities (C) (432.69) (85.63)
Net Increase in cash and cash equivalents (A)+(B)+(C ) 23.63 2.18
Cash and cash equivalents at the beginning of the period/year 20.89 18.71
Cash and cash equivalents at the end of the period/year 44.52 20.89
RS. IN CRORES
Particulars
As
at March 31,
2016
As
at December 31,
2014
Components of cash and cash equivalents
Cash on hand 0.07 0.06
Cheques/ drafts on hand 0.09 0.22
Balances with banks:
In current accounts 22.75 16.84
In unpaid dividend accounts * 13.32 3.77
In deposit accounts 8.29 -

22. Page | 22
 STATEMENT OF PROFIT AND LOSS
 FOR THE FIFTEEN MONTHS ENDED MARCH 31, 2016
RS. IN CRORES
Particulars Note
No.
For the fifteen
months
ended March 31,
2016
For the year
ended December
31, 2014
INCOME
Revenue from operations (gross) 21 6,983.98 3,320.23
Less: Excise duty 795.95 289.01
Revenue from operations (net) 6,188.03 3,031.22
Other income 22 178.24 116.30
Total revenue 6,366.27 3,147.52
EXPENSES
Cost of raw materials and components consumed 23 3,423.41 1,819.08
Purchase of stock-in-trade 24 74.04 31.73
Change in inventories of finished goods, work-in-
progress
and stock-in-trade
25 (53.22) (43.17)
Employee benefits expenses 26 319.64 160.90
Finance costs 27 1.41 1.67
Depreciation and amortisation expenses 28 137.73 50.16
Other expenses 29 693.68 329.12
Total expenses 4,596.69 2,349.49
Profit before tax 1,769.58 798.03
Tax expense
Current tax 524.69 231.67
Deferred tax charge 15.04 7.44
Total tax expense 539.73 239.11
Profit for the period/year 1,229.85 558.92
Earning per share - basic 453.20 206.38
Earning per share - diluted 451.54 205.37
 BALANCE SHEET
 AS AT MARCH 31, 2016
Total cash and cash equivalents (Refer Note No. 18) 44.52 20.89
RS. IN CRORES

23. Page | 23
Particulars Note No.
As
at March 31,
2016
As
at December 31,
2014
EQUITY AND LIABILITIES
Shareholders’ funds
Share capital 2 27.16 27.10
Reserves and surplus 3 2,123.62 1,206.56
2,150.78 1,233.66
Non-current liabilities
Deferred tax liabilities (net) 4 33.10 20.07
Other long-term liabilities 5 5.87 4.52
Long-term provisions 6 31.88 13.82
70.85 38.41
Current liabilities
Short-term borrowings 7 22.57 -
Trade payables 8
- total outstanding dues of micro enterprises and small enterprises 11.06 13.35
-total outstanding dues of creditors other than micro enterprises
and small enterprises
731.49 476.89
Other current liabilities 9 404.78 296.56
Short-term provisions 10 26.47 170.02
1,196.37 956.82
Total 3,418.00 2,228.89
ASSETS
Non-current assets
Fixed assets 11
Tangible assets 845.71 488.65
Intangible assets 29.04 11.93
Capital work-in-progress 33.31 42.67
Intangible assets under development 51.62 16.67
959.68 559.92
Non-current investments 12 1,172.26 271.49
Long-term loans and advances 13 86.75 139.00
Other non-current assets 14 24.50 29.83
2,243.19 1,000.24
Current assets
Current investments 15 709.78 917.09
Inventories 16 300.36 205.13
Trade receivables 17 46.13 10.70
Cash and cash equivalents 18 44.52 20.89
Short-term loans and advances 19 72.72 73.91
Other current assets 20 1.30 0.93
1,174.81 1,228.65

24. Page | 24
 CASh FLOW STATEMENT
 FOR THE YEAR ENDED MARCH 31, 2018
Particulars For the year
ended March
31, 2018
Fortheyear
ended
March 31,
2017
A. CASH FLoW FRoM/(USED IN) oPERATING ACTIVITIES
Profit before tax
Adjustments for:
Depreciation and amortisation expenses
2,648.2
7
222.34
2,276.99
153.3
4
Gain on disposal of property, plant and equipment (0.17) (0.12)
Impairment loss in the value of investments (refer note 36) 311.98 -
Property, plant and equipment discarded - 0.03
Rent income (2.92) (2.80)
Loss on sale of property, plant and equipment 1.00 0.36
Dividend from joint venture company (51.68) -
net gain on financial instruments at fair value through profit or loss (235.02) (219.74)
Interest income recognised in profit or loss (39.32) (3.93)
Expenses recognised in respect of equity-settled share-based payments 18.11 20.50
Re-measurement gains/(losses) on defined benefit plans (1.74) (0.12)
Exchange difference on conversion 18.32 -
Finance costs recognised in profit or loss 3.04 2.79
Operating profit before changes in working capital 2,892.21 2,227.30
Changes in working capital:
Adjustments for (increase) / decrease in non-current assets:
Other financial assets (6.00) (6.37)
Other assets 0.63 2.89
Adjustments for (increase) / decrease in current assets:
Inventories (56.78) (22.09)
Trade receivables (29.08) (2.81)
Loans 0.06 6.46
Other financial assets 5.29 (2.00)
Other assets (115.25) (12.59)
Adjustments for increase / (decrease) in non-current liabilities:
Other financial liabilities 1.72 1.29
Total 3,418.00 2,228.89

25. Page | 25
Provisions 1.30 (5.07)
Other liabilities 23.64 13.65
Adjustments for increase / (decrease) in current liabilities:
Trade payables 405.98 111.21
Other financial liabilities 7.33 4.72
Provisions 4.70 16.04
Other liabilities 186.73 79.92
Cash generated from operating activities 3,322.48 2,412.55
Direct taxes paid (807.09) (651.64)
Net cash flow from/(used in) operating activities (A) 2,515.39 1,760.91
B. CASH FLoW FRoM/(USED IN) INVESTING ACTIVITIES
Payment for property, plant and equipment (745.06) (545.46)
Proceeds from disposal of property, plant and equipment 1.60 0.70
Investment in subsidiary company (15.91) (11.01)
Investment in a joint venture company (16.50) (38.70)
Investment in equity shares of a company recognised at FVTPL (0.09) -
Proceeds from sale of investments 6,123.96 3,050.87
Purchases of investments (6,464.10) (4,247.19)
Investments in fixed deposit (1,243.94) (12.26)
Maturity proceeds from fixed deposit 135.00 45.05
Particulars For the year
ended March
31, 2018
Fortheyear
ended
March 31,
2017
Dividend from joint venture company 51.68 -
Rent received 2.92 2.80
Interest received 11.98 2.84
Net cash flow from/(used in) investing activities (B) (2,158.46) (1,752.36)
C. CASH FLoW FRoM/(USED IN) FINANCING ACTIVITIES
Short-term borrowings availed 459.69 344.21
Re-payment of short term borrowings (441.15) (344.79)
Bank overdraft repaid - (22.57)
Interest paid (1.35) (1.26)
Proceeds from issue of equity share capital under ESOP Scheme 19.49 5.74
(including security premium)
Dividend paid (272.22) -
Tax on dividend paid (44.90) -
Net cash flow from/(used in) financing activities (C) (280.44) (18.67)
Net Increase/(decrease) in cash and cash equivalents (A)+(B)+(C) 76.49 (10.12)
Cash and cash equivalents at the beginning of the year 12.79 22.91
Cash and cash equivalents at the end of the year 89.28 12.79

26. Page | 26
Particulars As
at March 31,
2018
As
at March 31,
2017
Components of cash and cash equivalents
Cash on hand 0.04 0.01
Cheques/drafts on hand 0.06 0.12
Balances with banks:
In current accounts 89.18 12.66
Cash and cash equivalents as per balance sheet (refer note 15) 89.28 12.79
 STATEMENT OF PROFIT AND LOSS
 FOR THE YEAR ENDED MARCH 31, 2018
Particulars Note
No.
For the year
ended March
31, 2018
Fortheyear
ended
March 31,
2017
INCOME
Sale of products 9,167.73 7,913.71
Other operating income 44.08 30.35
Revenue from operations 27 9,211.81 7,944.06
Other income 28 332.43 227.31
Total Income 9,544.24 8,171.37
EXPENSES
Cost of materials consumed 29 4,515.60 3,615.45
Purchases of traded goods 30 154.97 105.62
Change in inventories offinishedgoods,work-in-progress and
tradedgoods
31 (31.47) (14.50)
Excise duty on sale (refer note 27) 254.30 906.09
Employee benefits expense 32 547.86 408.97
Finance costs 33 3.04 2.79
Depreciation and amortisation expense 34 222.34 153.34
Other expenses 35 917.35 716.62
Total Expenses 6,583.99 5,894.38
Profit before exceptional items and tax 2,960.25 2,276.99
Exceptional item 36 311.98 -
Profit before tax 2,648.27 2,276.99
Tax expense

27. Page | 27
Current tax 37 877.34 678.53
Deferred tax 37 58.02 38.44
Total tax expense 935.36 716.97
Net profit after tax 1,712.91 1,560.02
other comprehensive income/(expense)
Items that may be reclassified to profit orloss:-
Exchange differences in translating the financial statements of
foreign
18.32 -
operations
Income tax effect 37 (6.33) -
11.99 -
Items that will not be reclassified to profit orloss:-
Re-measurement gains/(losses) on defined benefit plans (1.74) (0.12)
Income tax effect 37 0.60 0.04
(1.14) (0.08)
Total Comprehensive income for the year 1,723.76 1,559.94
Earnings per equity share of Rs. 10 each (in Rs.)
(a) Basic 43 629.07
573.75
(b) Diluted 43 627.88
572.17
 BALANCE SHEET
 AS AT MARCH 31, 2018

28. Page | 28
LIABILITIES
Non-current liabilities
(a) Financial liabilities
(i) Other financial liabilities 20 8.88 7.16
(b) Provisions 23 29.12 26.13
(c) Deferred tax liabilities (net) 24 142.97 79.22
Particulars Note
No.
As at
March 31, 2018
Asat
March 31, 2017
ASSETS
Non-current assets
(a) Property, plant and equipment 4 1,454.76 832.43
(b) Capital work-in-progress 5 141.89 265.01
(c) Investment property 6 3.86 4.21
(d) Intangible assets 7 38.66 33.41
(e) Intangible assets under development 8 191.32 108.76
(f) Investments in subsidiaries & joint ventures 9 49.43 300.42
(g) Financial assets
(i) Investments 10 3,183.16 2,357.70
(ii) Other financial assets 12 24.88 16.44
(h) Non-current tax assets 25 18.44 18.42
(i) Other non-current assets 17 163.85 243.10
Total non-current assets 5,270.25 4,179.90
Current assets
(a) Inventories 13 379.23 322.45
(b) Financial assets
(i) Investments 10 633.40 883.61
(ii) Trade receivables 14 78.02 48.94
(iii) Cash and cash equivalents 15 89.28 12.79
(iv) Bank balances other than (iii) above 16 1,119.54 7.82
(v) Loans 11 0.28 0.34
(vi) Other financial assets 12 33.71 8.70
(c) Other current assets 17 190.96 75.71
Total current assets 2,524.42 1,360.36
Total assets 7,794.67 5,540.26
EQUITY AND LIABILITIES
Equity
(a) Equity share capital 18 27.26 27.21
(b) Other equity 19 5,344.97 3,895.38
Total equity 5,372.23 3,922.59

29. Page | 29
(d) Other non-current liabilities 26 46.84 23.20
Total non-current liabilities 227.81 135.71
Current liabilities
(a) Financial liabilities
(i) Borrowings 21 85.98 67.44
(ii) Trade payables 22 1,170.47 764.49
(iii) Other financial liabilities 20 166.70 140.25
(b) Provisions 23 47.21 42.51
(c) Current tax liabilities 25 108.01 37.74
(d) Other current liabilities 26 616.26 429.53
Total current liabilities 2,194.63 1,481.96
Total liabilities 2,422.44 1,617.67
Total equity and liabilities 7,794.67 5,540.26
 Source-(http://www.eicher.in/ar2017-18/index.html)
 OrganisationalPractices:
Over the years, Royal Enfield has undergone considerable changes in its organization
structure.In 1955, when there was a requirement for 800 of these motorcycles for the Indian
army and police force, the Redditch plant failed to deliver them and outsourced it to a subsidiary
in Chennai called the Enfield India Limited. This geographical diversification was what lasts as
Royal Enfield today as the UK parent company ceased production in 1970. When Eicher bought
this company, they proceeded to revamp the ailing company through rapid restructuring.

30. Page | 30
Introducing new models necessitated a Product Division Structure.
AVL engine, and the Glass Wool Silencer.While Thunderbird was launched to cater to the newer
market segment who needed a cruiser lookalike that would give them the ‘Indian-Harley’
feeling, Electra was launched to meet the segment with the same look as the classic Bullet but
with more reliable electrical systems and greater fuel efficiency. After Sales Service, a traditional
sore point with Royal Enfield was the organization with incentives and rewards instituted. All
this drastically improved the image of the company.Over the years, Royal Enfield has undergone
considerable changes in its organization structure.
 HR Policy
o Royal Enfield Bullet Company is recruiting talented fresher candidates from all
over India.
o Royal Enfield Oragdam jobs 2019 Royal Enfield Chennai recruitment Royal
Enfield Oragadam current job openings Royal Enfield Sriperumbudur career
opportunities 2019 Royal Enfield Graduate Engineering trainee & Diploma
Trainee job application online Royal Enfield Eicher Motors job vacancies.
o They invite 10th, 12th, Diploma, Degree candidates to fill their job vacancies. As
it is the manufacturing unit, Royal Enfield mostly used to recruit DME or B.E
Mechanical Engineering candidates.
o Aspirants are requested to go through the latest Royal Enfield job vacancies 2019
fully, Before applying for the job.
o Career Opportunities in Royal Enfield is coming under Manufacturing Private
Sector Jobs. This is the best opportunity for job hunters who are always looking
job in Royal Enfield Chennai. The interested and eligible candidates can able to
apply for a job by online mode only.
o
 Marketing Mix
 Place
The market of Royal Enfield can be divided basically into two segments. Big

31. Page | 31
Cities/Metropolitans: Tier1 &Tier 2 CitiesSmall Cities: Tier 3 &DH (District Headquarters).
 Promotion
 Promotion done through Adventure magazines, Auto and biking
magazines and local print media.
 Sticks to the Vintage and Macho appeal it brings in all its promotions.
 Offers Adventure Rides to the existing and future customers.
 Price
 In India the pricing of the motorcycle is more towards premium segment. It is perceived
as an aspirational brand.
 Products
 Bullet 350/continental gt
 Classic/electra35
 Market Segmentation

32. Page | 32
The Indian automotive industry has sub-segmented the motorcycle in terms of vehicle pricing,
power and mileage.
Sub-Segmentation of Motor Cycles on Basis of Pricing
Economy: Priced at RS. 50000- RS.70000 [100cc - 125 cc]
Executive: Priced at RS. 70000- RS.85000 [125cc – 150cc]
Premium: Priced at RS. 85,000 and above. [150 cc+]
The premium segment is further sub divided into various segments:
150 cc-200 cc.
200 cc – 350cc segment.
350 cc – 500cc segment.
500 cc + segment.
 SWOT Analysis
 Strengths
 NO competition in 350 cc and 500 cc segments in the market.
 Proven product durability.
 Customer retention.

33. Page | 33
 Weakness
 High prices.
 Less advertisement.
 Little product innovation.
 Opportunities
 Introduction of motorcycles in entry and executive segmengs of the
market.
 Encourage the sales with advertisement.
 Introduce customer relationship management.
 Innovation of products.
 Offer better finance schemes.
 Threats
 Movement of industry towards premium segments of 250cc.
 Entry of exclusive foreign players.
 Entry of other players in 350cc and 500cc segments of market.
Conclusion

34. Page | 34
The presentation objectively explains the rise of Royal Enfield from a brand on the brink of
extinction to the most aspirational motorcycle brand in India.
It also highlights the segment under which the bike is positioned, describes its closest
competitors and where RE holds value vis-à-vis Bajaj and KTM.
It shows the company’s ambition to further go upmarket by entering the 750cc+ segment
to augment its declining market share in the 350cc+ segment.
Royal Enfield’s strategic acquisition plan of Ducati will counter Bajaj’s ‘Triumph’
acquisition and also set a platform to launch the brand into a global league.
Bibliography
 India’s No 1 two wheeler Magazine(www.bikeindia.com)
 Royal Enfield official websits(https://www.royalenfield.com)

35. Page | 35
 https://www.bikewale.com/
 https://autoportal.com/newbikes/
 For financial statements of Royal Enfield(http://www.eicher.in)