A STUDY ON IMPORTANCE OF

EXTERNAL COMMUNICATION AT
ROYAL ENFIELD, GURGAON

November 21, 2019

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 CONTENTS

INTRODUCTION....................................................................................................................................... 3

SIGNIFICANCE OF THE STUDY.......................................................................................................... 3

GAPS OF THE LITERATURE REVIEW ............................................................................................... 4

PURPOSE OF THE STUDY .................................................................................................................... 4

OBJECTIVES OF THE STUDY .............................................................................................................. 5

KEY TERMS ............................................................................................................................................ 6

BRIEF OUTLINE ..................................................................................................................................... 6

METHODOLOGY ..................................................................................................................................... 7

UNIVERSE OF THE STUDY.................................................................................................................. 7

LOCALE OF THE STUDY...................................................................................................................... 8

SAMPLE SIZE ......................................................................................................................................... 8

DATA COLLECTION ............................................................................................................................. 8

DATA ANALYSIS ................................................................................................................................... 9

FIELD/ RESEARCH EXPERIENCE ....................................................................................................... 9

LITERATURE REVIEW ........................................................................................................................ 10

BRIEF OF LITERATURE REVIEW ..................................................................................................... 10

EXTERNAL COMMUNICATION SKILLS ............................................ Error! Bookmark not defined.

ABOUT Royal Enfield ......................................................................................................................... 15

COMPETITOR ANALYSIS.................................................................................................................... 19

COMPETITORS ......................................................................................................................................... 19

SWOT ANALYSIS ................................................................................................................................ 19

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 INTRODUCTION

Given today’s technology driven communication systems, corporates have fewer face-to-face
interactions. As a result, it has become crucial to maximize their impact. External communication
is key to effective relationships between a company and the stakeholders. It also impacts a
company’s interaction with customers and other businesses. Thus, if external communication is
not a competitive advantage, it's certainly a desirable strength, which business leaders can use to
their companies' benefit. To profit from the opportunities of a global economy, you must relate to
people. For example, successful leaders of businesses, both large and small, rely on relationships
to help them grow their businesses, identify suppliers, hire employees and address challenges.
These leaders understand that external communication is the essential skill required to build such
relationships and accomplish these goals. This report gives a study on “Importance of external
communication at Royal Enfield”. Taking an example of Royal Enfield, a company in its growth
period to show how and why external communication has become an integral part of companies
that want to grow and sustain their leading positions in long run.

SIGNIFICANCE OF THE STUDY

Communication is key when it comes to a workplace's efficiency and success. Without it,
projects would not be completed, and important interactions with potential clients and customers
would not be made. External business communication is any information the company
distributes to the public, either about the organization itself or their products and services. A
well-thought out communications plan not only defines the target audience, but also focuses on
how to reach it effectively. Because the goal of external communications is to promote the
company and increase revenue, external communications are an important part of an overall
marketing plan. External communication is not just important in the workplace, it is critical.
External communication is any communicative effort specifically for people and organizations
operating outside of the business. While internal communications are specifically for employees
and management, external communications focus on spreading news and information about the
corporation to the public, customers, and company stakeholders. Common examples of external

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business communications include direct mailings, financial records, press releases, and
newsletters. modern technology has changed the face of external communications, and the
internet has become a valued resource in reaching new customers. Companies create websites to
let people know of upcoming products and services. Social media such as Facebook and blogs
are an easy way to reach target demographics and are a cost-effective means of promotion.
Communications are one way to shape and define a corporation's image to the community,
clients, and potential investors. External communications such as newsletters, media stories and
press releases let the public know about the company workplace, philanthropic and
environmental efforts, and other image-related activities, all of which serve to strengthen the
public relations efforts of a company.

GAPS OF THE LITERATURE REVIEW

According to the reviewed literature, a lot of study has been conducted on understanding external
communication, what are its components, why it is important for Organizations and how it is to be
taken care of. Also a lot of study has been conducted on a growing company like Royal Enfield. It
was evident that with its expansion in the two-wheeler market and rise in sales of mid-high end
bikes, the company has higher potential of growth. But there is not much in the research related to
Importance of external communication in Royal Enfield as an organization. But since external
communication is an integral part of any company’s growth, this must be an important element/
contributor of growth in Royal Enfield. Thus being an integral part of their growth strategy. Thus,
a further study is performed by the means of a Questionnaire to get more insights into the
importance of external communication at Royal Enfield.

PURPOSE OF THE STUDY

The following is the purpose of the study: -

 To identify the gaps in the literature review and design a justified topic and an enhanced
study of research for Royal Enfield pertaining to external communication observed in the
said company.

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  To design a Hypothesis that would act as a supporting or proposed explanation made on
the basis of limited evidence collected in the form a Questionnaire as a starting point for
further study on the topic as observed in the company.
 To prepare a Literature Review that would help to add material to the writing of the report
through secondary data collection and become a supporting data to the analysis and finding.
It helps collect all form of data available related to external communication as a form of
Communication as observed in Royal Enfield and thus correlated the data into meaningful
insights for the report.
 To prepare a competitors’ analysis to know how the competitor performs in a similar
scenario and what the company’s strengths and weaknesses are over the competitor in term
of external communication as observed.
 To analyze the data in a proper format and come up with a solution to the inconsistency or
limitation, if any.
 To prepare a questionnaire to collect primary data for the extent and ways in which external
communication as a form of Communication is important or being taken care of in a
growing organization, i.e. Royal Enfield.

OBJECTIVES OF THE STUDY

Based on the overall purpose of the study, the objectives of the study are outlined as follows: -

 To understand the importance of external communication in a growing corporate

organization like Royal Enfield.
 To identify the awareness level of employees at Royal Enfield pertaining to the importance
of external communication.
 To identify the ways and areas where external communication are taken care of by
employees at the company.
 To analyze the knowledge and importance of external communication as possessed by
employees at Royal Enfield and the extent to which it is followed.
 To suggest ways in which employees can understand the relevance of external
communication better and improve on them.

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  To adopt a theoretical framework to know about external communication in detail.
 To test the hypothesis as designed for further study on importance of external
communication at Royal Enfield.
 To do a competitive analysis to gain insights into how the competitor performs in a similar
scenario and what the company’s strengths and weaknesses are over the competitors.
 To identify gaps in the actual and must have knowledge of external communication
amongst employees at Royal Enfield and provide a solution for the reduction in the gap.
 To analyze the prepared questionnaire as a source of primary data for the extent to which
external communication Skills are being taken care of in a growing organization, i.e. Royal
Enfield.

KEY TERMS

BRIEF OUTLINE

Reports are documents designed to record and convey information to the reader. This report
focuses on analyzing through various means, the importance of external communication in
organizations. The report is thus divided into six chapters. Chapter 1 is based on secondary sources
of data collection and focuses on introducing the topic of study i.e. Importance of external
communication at Royal Enfield. It includes a brief introduction of the topic, the significance,
purpose and objectives of the study. It also includes identification of the gaps in the study and
describes the key terms given in the report. Chapter 2 focuses on Methodology i.e. identifying the
methods used in the study. This section of the report is based on primary source of data collection
and details how the research was conducted, the participants, the research methods used, and
analysis of the data. Chapter 3 is the Literature Review that includes current knowledge and details
from articles and blogs related to importance of external communication. Chapter 4 gives a
competitive analysis to check the strength and weakness of Royal Enfield as compared to its
competitors in context of external communication as observed. Chapter 5 is totally devoted to the
analysis of the data collected and chapter 6 gives a conclusion to the study along with findings,
suggestions, limitations and further scope.

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 METHODOLOGY
This report focuses on importance of external communication at Royal Enfield. A lot of study has
been conducted on understanding external communication, what are its components, why it is
important for organizations and how it is to be taken care of during communication. Also a lot of
study has been conducted on a growing company like Royal Enfield. It was evident that with its
expansion in the two-wheeler market and rise in sales of mid-high end bikes, the company has
higher potential of growth. But there is not much in the research related to Importance of external
communication in Royal Enfield as an organization. Since the secondary form of data is not
sufficient for the study, the focus is being shifted to primary sources of data collection i.e.
Questionnaire and Interview Schedule. A Questionnaire is a structured form, either written or
printed, consists of a formalized set of questions designed to collect information on some subject
from one or more respondents. In other words, a data collection technique wherein the respondents
are asked to give answers to the series of questions, written or verbal, about a pertinent topic is
called as a questionnaire. Apart from questionnaires, Interview Schedules can also be adopted to
study the importance of external communication at the company. An Interview schedule is a
structure of a set of questions on a given topic which are asked by the interviewer or investigator
personally. The order of questions, the language of the questions and the arrangement of parts of
the schedule are not changed. However, the investigator can explain the questions if the respondent
faces any difficulty. The answers received from the respondent either through Questionnaires or
Interview Schedules are then analyzed to make inferences about the subject matter and know the
depth of the topic. The data collected through questionnaires and Interview Schedules is essentially
first hand, thus giving a much better and clearer results of the topic. As a part of the report, the
study would be restricted to Questionnaires only.

UNIVERSE OF THE STUDY

The universe of the study includes every employee of Royal Enfield who is working for the
company across different branches in India or outside India. These employees are the best source
of information about the importance of external communication Skills to them.

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LOCALE OF THE STUDY

With an employee base of 4000 employees, Royal Enfield currently have offices in a number of
cities in India and also has its presence outside India. But due to geographic dispersion, all
employees at all places cannot be covered. Thus restricting the study to the Gurugram office of
Royal Enfield that lies in the Northern Capital Region of Delhi.

SAMPLE SIZE

The Gurugram office of Royal Enfield currently has around 300 employees working. Since it is
difficult to get answers from all the employees of the company. Thus, the scope of the study is
narrowed down. To find a narrow sample size of selected few, stratified random sampling would
be used as a technique to find the sample. Stratified Random sampling is a method of sampling
that involves the division of population into smaller groups known as Stratas. In this method,
Stratas are formed based on members’ shared attributes or characteristics. At Royal Enfield,
employees are working at senior, middle and junior levels. Thus dividing the population into
stratas. The senior level would include top management executives like the CEO, CFO, etc. The
middle level would include middle management or the managers who work on specific functions
under the top management and manages the junior level. The employees at the junior level consists
of interns, trainees, etc who work under the middle level managers. A few employees would be
chosen randomly for from each of the stratas to derive the sample size. Accordingly, a sample of
10 employees would be chosen that includes 2 employees from senior, 5 employees from middle
and 3 employees from the junior level.

DATA COLLECTION

As a part of the study, data would be collected from primary and secondary sources. Primary
sources are the first hand testimony or direct evidence concerning a topic under consideration. This
includes, Questionnaires, Case study methods, Interview Schedules, etc. On the other hand,
secondary sources of data are the ones that offer the interpretation or analysis done on data
collected from primary sources. This includes newspapers, internet, blogs, journals, articles, etc.

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Data regarding the study has been collected from both primary and secondary sources. For the
purpose of collection of relevant information regarding Royal Enfield as a company and external
communication as a part of communication, secondary sources like internet, blogs, articles and
newspapers are used. For finding collated data related to importance of external communication at
Royal Enfield, primary sources of data collection is used like Questionnaire. For the purpose of
the study, a Questionnaire has been designed to collect fist hand information for the research.

DATA ANALYSIS

The survey tool i.e. questionnaire was developed with the help of Google forms which is an online
platform that allows researchers to develop, collect and analyze surveys. The questionnaire mostly
consisted of closed end questions, however some open end question was included to gather more
information and gain insight on importance of external communication in the organization. A
qualitative analysis has been conducted as the sample size was too small to conduct a quantitative
analysis. For the purpose of competitive analysis, SWOT analysis would be used that would allow
a closer analysis of the strength and weaknesses of the respective company and its competitors,
the opportunities available and the threats faced by the company.

FIELD/ RESEARCH EXPERIENCE

In order to gain theoretical knowledge, literature review required me to go through a lot of previous
study on the Non-Verbal communication as well as various growth related researches that was
conducted on Royal Enfield. The most difficult task in the study was to find the ideal respondents
to the questionnaire and to persuade them to fill the same. There was always a time and financial
constraint while conducting the survey. In this entire study, the experience gained was invaluable
as it required me to talk to the HR officials of the organization in order to collect data through the
questionnaire. Also, conducting this research was a good learning experience as the tools required
to conduct the analysis of the data and it turned out to be an opportunity for primary data collection.
Both of which required utmost care & concentration.

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 LITERATURE REVIEW
This chapter is dedicated to the Literature Review for the topic external communication at Royal
Enfield. This chapter would include a critical analysis of the published sources, or literature on the
given topic. This would be an assessment of the literature found through various sources and would
provide a summary, classification, comparison and evaluation. This is being done to check what
all have been discussed about Royal Enfield, provide an overview of the key concepts, and identify
major relationships, patterns, strengths, weaknesses and gaps in the research so as to give a solid
background to the investigation. The Literature Review for the topic would contain any news
article, scholarly report, blog or written material found with regard to Royal Enfield as a company.
The articles would be recent as well 5-7 years old. The sources used for writing the Literature
Review would majorly be the news websites for e.g. Financial Express, Economics Times,
Hindustan Times, Mint, Livemint, etc. Apart from this some scholarly articles from Google
Scholar and some blogs have also been referred.

BRIEF OF LITERATURE REVIEW

The article “Royal Enfield Twins Flat Track unveiled at EICMA 2019” retrieved from indiatoday.in dated

Nov.6,2019 says that Royal Enfield has unveiled the Twins Flat Track at the ongoing EICMA 2019

in Milan, Italy. Royal Enfield Twins Flat Track is among the six custom motorcycles showcased

by the two-wheeler maker at the event, with the other five being Nought Tea v1.0, Nought Tea

v2.0, Two Smoking Barrels, MJR Roach and Gallinella.

Royal Enfield Twins Flat Track has been built in collaboration with Harris Performance. The

bike is powered the Royal Enfield Twin (Interceptor and Continental GT) motor and gets a

bespoke brazed steel tube frame made specifically for flat track racing.

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The article ‘Royal Enfield Interceptor & GT 650 OUTSELL the KTM 390s, Yamaha R3,

Kawasaki Ninja & Bajaj Dominar yet again’ dated November 3,2019 retrieved from cartoq.com

says that the Royal Enfield Interceptor 650 and Continental GT 650 continue to dominate the

affordable high-performance motorcycle segment, beating every other motorcycle in the

market. In September 2019, Royal Enfield sold 1,856 units of the Interceptor 650 and

Continental GT 650. KTM sold 398 units of the Duke 390 and RC 390 put together while

Honda sold 96 units of the CB 300R. Kawasaki clocked 119 units of the Ninja 300 while

Yamaha managed to sell only 32 units of the R3. TVS Motors sold 326 units of the Apache

RR 310 while Bajaj managed 828 units of the Dominar. Clearly, joint sales of the competition

(every other similarly priced motorcycle) is much lower than what the Interceptor and

Continental GT650 have managed for Royal Enfield. In fact, Royal Enfield is now dominating

the entire premium motorcycle segment in India.

The article ‘Tracing the journey of one of world’s most iconic motorcycles—Royal

Enfield’ retrieved from CNBCTV18.com dated Oct 8,2019 says that founded in the UK

in 1890, Royal Enfield’s success runs parallel to the early growth of the automotive

industry. The brand took the humble bicycle and transformed it to the legendary

motorcycle that is today. In the 1950s, the company embarked on a road trip that took it

8,500 km to Chennai. Under the ownership of an Indian company, it continued to

manufacture and sell motorbikes in the subcontinent. Recently, its journey has come full

circle as the brand returns to its roots. Royal Enfield has made a significant investment in

the UK, taking advantage of the country’s wealth of technical and design expertise. In fact,

the UK is home to 80 per cent of the world’s high-performance motorsport engineers,

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making it the global centre for automotive innovation. Plus, Royal Enfield’s performance

in the UK is up 124.8 per cent on registrations to 2,140 motorcycles. Th e Royal Enfield

Interceptor 650 is the top selling model in 2019 in the middleweight market (126cc-650cc).

The article ‘Siddhartha Lal exits Royal Enfield as Eicher seeks to shed 'family-run' tag’

retrieved from livemint.com dated April 4,2019 states that Twenty-two years after Eicher

Motors Ltd founder and former chief executive officer (CEO) Vikram Lal gave up his executive

powers to let professionals run the company, his son Siddhartha Lal has initiated a similar

transition. Lal junior has appointed Ashok Leyland Ltd's Vinod Dasri as the CEO of the

motorcycling brand of the company, Royal Enfield. Lal is also giving up his executive

responsibilities at Royal Enfield to ensure that Dasari gets a free hand in running the company.

The move has striking similarities with the decision made by his father.

The article ‘Eicher Motors CEO Siddhartha Lal named EY Entrepreneur of the year 2018’

retrieved from livemint.com dated Feb 13,2019 states that Siddhartha Lal, Managing Director

and Chief Executive Officer of Eicher Motors, was named the EY Entrepreneur of the year 2018,

India at the annual awards ceremony this evening. Siddhartha Lal has led an impressive

transformation at Eicher Motors since he took over the reins in 2006, helping the company

resurrect the Royal Enfield motorcycle brand in India and establishing it as a global brand icon.

Lal will now represent India to compete for the coveted EY World Entrepreneur of the year

(WEOY) award at the annual WEOY event in Monte Carlo from 6-8 June, 2019.

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The article “No silver bullet in sight for Enfield hit by sliding volume” retrieved from

economictimes.com dated Oct 5,2019 says that ROYAL ENFIELD sales are rather soft, and

state-wise volume statistics furnished by industry body SIAM show that the bike that defines

panache for motorcycle enthusiasts in India is riding through a rather rough patch. Eight states

that make up three of every five RE bikes sold locally have reported deceleration. Maharashtra

and Karnataka together account for 13 per cent of RE volumes, and these two states have seen a

drop in 6-7 quarters of the past nine. Kerala, the largest market of RE, has witnessed a volume

drop of 13% and 23% in the September and December quarters, respectively. The September

decline is attributed to floods, but declines in the December quarter have put the lens on

underlying demand.

The article “Royal Enfield: Bike that stirs the soul” retrieved from livemint.com dated Nov

12,2012 says that In 1954, the Indian government ordered 800 rugged motorcycles for use by

security personnel on the border with Pakistan. The chosen bike was Royal Enfield Bullet 350,

built in Redditch, the UK, by Enfield Cycle Co.

In a prescient move the following year, Enfield partnered with Madras Motors to form Enfield

India, first to assemble and later build the bike in what eventually was to become its home

market.And on 11 October 2012, the new generation Thunderbird 500 was launched by Eicher

Motors Limited, the present maker of the bike. At ₹ 1.82 lakh, it is the most expensive

motorcycle from the Enfield stable. Within a day, the company had received 100 bookings for a

product that is currently available online.

In the intervening 57 years, the bike, and the company, have had quite a ride.
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In 1971, Enfield Cycle went out of business, but the Royal Enfield Bullet continued to chug

along in India.

In the 1980s and 1990s, the bike faced significant competition from new-fangled and fuel-

efficient bikes of Japanese origin with hyphenated brand names such as Hero-Honda ,

Bajaj- Kawasaki and Escorts-Yamaha.

EXTERNAL COMMUNICATION

Definition:

External communication is the transmission of information between a business and another

person or entity in the company's external environment. These persons can be clients, dealers,
customers, government officials or authorities, investors, shareholders and society at large etc. A
customer’s feedback is also external communication. An organization invests a lot of time and
money to improve their image through external communication.

The Need for External Communication:

External communication happens when a business exchanges information with customers,

prospects, partners, suppliers, investors and other stakeholders outside of the company. It’s
integral that the organization implement polices that guide employees on what kind of
information to share outside the company, who to share it with and how to share it.

Having guidelines on what kind of information to share with which party is important so that
certain information doesn’t fall into the wrong hands or create problems for the company. For
example, if a company is developing a new product that will revolutionize the market, it’s
critical not to share specific details of that product with competitors before its release.
However, the company may want to tell their valued customers, investors and partners about
the product before anyone else.

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Controlling negative information about the company is one of the reasons effective external
communication is so important. By having a strategy in place, organizations can reach out to
external stakeholders and discuss the issues at hand. Public relations is a manner of external
communication on where a business uses psychological and sociological knowledge to create a
positive image of its business and activities. The message is broad and is about creating a good
public image. For example, a fast food chain may sponsor a kids' marathon to improve its image
in the community relating to health. Also, if a company is dealing with a PR disaster, for
example, having a plan to speak with the media and customers is an important part of handling
the situation.

ABOUT ROYAL ENFIELD

A global leader in mid-sized motorcycle segment, Royal Enfield is the oldest motorcycle brand in
continuous production since 1901. With its distinctive range of simple yet engaging and accessible
motorcycles, exhilarating community riding events and an ecosystem that introduces customers to
the world of pure motorcycling, Royal Enfield has evolved into an experiential brand. Royal
Enfield with its motorcycle that combine modern-day elements with the brand’s heritage, garners
immense enthusiasm amongst global motorcyclist. It has modern product development centers at
Leicestershire, UK and Chennai, India where expert technical team conceptualize next-generation
motorcycles. Royal Enfield also has three state-of-the-art manufacturing facilities around Chennai
to meet global demand. These three Manufacturing facilities are located at Thiruvottiyur,
Oragadam and Vallam Vadagal near Chennai, India.

It has three Fully-owned subsidiaries – Royal Enfield North America (USA), Royal Enfield Brazil
and Royal Enfield Thailand.

Royal Enfield also has 42 Exclusive Royal Enfield stores across UK, Colombia, USA, Mexico,
UAE, France, Spain, Indonesia, Thailand, Philippines, Australia, New Zealand, Portugal,
Malaysia, Brazil, Vietnam and Argentina.

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VISION AND VALUES

Royal Enfield has a vision to be a premium motorcycle brand with a diversified and
multinational presence. The company has a mission to be recognized as the industry leader
driving modernization in two-wheeler transportation in India and the developing world. RE aims
to strengthen each of its product brands as leaders in their respective segments through
innovative products and expansion of its existing network spanning the geographical expanse of
the country.

EXCHANGE VALUATION

As of November 21, 2019, the company traded in India on the Bombay Stock Exchange and
National Stock Exchange, with 52.92% of shares held by the public, government entities, banks
and financial institutions. Its current stock price at National Stock Exchange is INR 21,565 and at
Bombay Stock Exchange is INR 21,670.

HISTORY

Royal Enfield was a brand name under which The Enfield Cycle Company
Limited of Redditch, Worcestershire sold motorcycles, bicycles, lawnmowers and stationary
engines which they had manufactured. Enfield Cycle Company also used the brand name
Enfield without Royal.

The first Royal Enfield motorcycle was built in 1901. The Enfield Cycle Company was
responsible for the design and original production of the Royal Enfield Bullet, the longest-living
motorcycle design in history.

The company makes the Royal Enfield Bullet, and other single-cylinder and twin-cylinder
motorcycles. First produced in 1901, Royal Enfield is the oldest motorcycle brand in the world
still in production, with the Bullet model enjoying the longest motorcycle production run of all
time.

The Indian government looked for a suitable motorcycle for its police and army, for patrolling the
country's border. The Royal Enfield Bullet was chosen as the most suitable bike for the job. The
government ordered 800 units of the 350 cc model. In 1955, the Redditch company partnered
with Madras Motors in India to form 'Enfield India' to assemble, under license, the 350 cc Royal
Enfield Bullet motorcycle in Madras (now called Chennai). The tooling was sold to Enfield India

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so that they could manufacture components. By 1962, all components were made in India. The
Indian Enfield uses the 1960 engine (with metric bearing sizes)

In 1990, Royal Enfield collaborated with the Eicher Group, an automotive company in India,
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. Although Royal Enfield
experienced difficulties in the 1990s, and ceased motorcycle production at their Jaipur factory in
2002, by 2013 the company opened a new primary factory in the Chennai suburb
of Oragadam on the strength of increased demand for its motorcycles. The original factory
at Tiruvottiyur became secondary, and continues to produce engines and some motorcycle
models.

CORPORATE SOCIAL RESPONSIBILITY

Royal Enfield is primarily a manufacturer of motorcycles and environmental and social

concerns are an integral part of its product development policy. Raw material, energy, water
and waste are some crucial aspects, which are taken into consideration during the product
design and manufacturing process.

1. At the product development stage, material recyclability of the motorcycles is also taken
into consideration from a product lifecycle perspective. Social or environmental
concerns, risks and/or opportunities and their importance in product design. Reducing our
energy footprint is an important aspect of the production. Resultantly, energy saving
initiatives are undertaken regularly in all our plants. Our largest plant, in terms of
production volume, has shown a 17.5% reduction in energy intensity (energy per unit of
vehicle) over the last 2 years. In addition, the Company has in place processes to
minimise hazardous waste generated and being disposed at landfills. Aluminium and steel
scrap generated are recovered and sold to industry for recycling.

2. All plants of EML have a closedloop water recycling design to ensure close to
minimal/zero discharge of waste water. Recyclability is an outstanding feature of the
motorcycles that EML manufactures. A large part of the materials used in the
motorcycles can be recycled at the end of its life (up to 85%). The remaining 15􀀜 consist

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 of components such as tyres, rubber parts, seat foam, glass of mirror, headlamp, magnets,
electronic parts, paints etc. All motorcycles manufactured by the Company are ELV
compliant. The Company ensures that any waste generated during its manufacturing
process is responsibly recovered and recycled.

3. Rural Development: Several social development activities are being undertaken

by the Company in communities near the Oragadam plant in Tamil Nadu. Key
interventions include women’s empowerment through Self-Help Groups (SHG),
school education (academic assistance to children, transit schools for dropouts
to integrate back into the system, computer education, scholarships), health
and hygiene (provision of household toilets and renovation of women sanitary
complex, hand washing programme at schools) and renovation of existing water
bodies such as ponds and bore wells.

4. Skill Development: The Company offers a skill training programme for

underprivileged youth through multiple centres in and around Chennai and
Gurugram. Eicher Academy for Skills offer training programmes on administrative
assistant and retail for less educated and economically backward youth at
Chennai and Gurugram. In the year 2017-18, 275 young people were trained an
supported to get appropriate jobs.

5. Road Safety: A road safety project has been initiated in Leh District of J&K and

Lahaul and Spiti district of Himachal Pradesh to create road safety awareness,

provide emergency and trauma care. Sessions and training on community health

care and vocational skills are also part of the project.

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 COMPETITOR ANALYSIS
COMPETITORS
1. Bajaj Auto

2. Jawa

3. Hero Motors

4. Benelli

5. Triumph Motorcycles

6. TVS Motors

SWOT ANALYSIS

STRENGTHS:

Strong Brand Name: Royal Enfield has created a strong brand identity in the market and has
been able to gain credibility in the market from its customers. Royal Enfield is has made itself a
cult brand and is desired by many.

High-Quality Standards: One of the main reasons of the strong brand name of Royal Enfield is
due to its high-quality standards. Royal Enfield emphasises on providing best quality to its
customers.

Robust Research and Development: Royal Enfield has an in-house R&D centre which takes care
of further enhancement of the product portfolio of the company and makes sure that the reliability
of the consumer is maintained. Royal Enfield has recently invested Rs.600 crores in two more
R&D units, one in India and one in the UK.

Exponential Growth in above 350cc segment: Royal Enfield has grown at over 50% in the last
5 years globally. Such strong growth increases revenue and profits for the company which can be
further invested in improving and enhancing product portfolio.

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Expanding Global Market: Royal Enfield bikes are currently exported to more than 30 countries
worldwide and due to increase in demand, Royal Enfield has invested heavily in setting up
manufacturing facilities in the UK.

Support from Eicher group: In 1994, Enfield India and Eicher Group merged together to form
Royal Enfield. Eicher, being one of the world’s leading automotive manufacturers has supported
Royal Enfield since and has been an important reason for the success of Royal Enfield worldwide.

WEAKNESS:

Expensive: Royal Enfield targets a niche market of motorcycle lovers who are ready to pay a
premium for the brand. But, it misses out on a large market that is willing to buy a low priced
variant of Royal Enfield.

Low Mileage: Royal Enfield produces large volume cylinder bikes (high CC) which have more
capability to burn more amounts of air and fuel and thus they give low mileage as compared to
low CC bikes.

OPPORTUNITY:

Growing Market: The two-wheeler market is growing worldwide which provides

an opportunity for the company to increase customer base and sales globally.

Expand Globally: Royal Enfield needs to expand its export markets to more countries in the
Europe, Africa and Asia. The demand for such bikes is increasing in these markets and Royal
Enfield can take advantage of such an opportunity.

Higher Disposable incomes: The Disposable income of middle-class people in countries like
India has been on the rise. Thus, those individuals who could not afford a Royal Enfield some
years ago are now in a position to buy one. This is one of the main reasons for the growing sales
of Royal Enfield.

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THREATS:

Strong Competition: Royal Enfield competes with many bike companies in the cruiser segments
worldwide. It also competes with high utility bikes in the market. Such competition in the market
reduces market share.

Fuel Rise can cause the decrease in sales: As mentioned earlier, mileage of Royal Enfield bikes
are low and thus any increase in Fuel prices will affect sales of Royal Enfield.

THE OTHER POINTS OF THE PROJECT ARE WORK UNDER PROGRESS.

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