Royal Enfield Thunderbird 350.

K.R. Sundaram Iyer (KRS) and his nephew K Eswaran from Kallidaikurichi started with trading in bicycles and built an industrial empire.

The Royal Cycles and the English Cycles and Motorcycles Importing Co. were set up in Broadway by KRS and his nephew Eswaran to sell bicycles and motorcycles. They dealt with the branded bicycles of Raleigh, Rudge, Humber, BSA, Hercules, Phillips and Royal Enfield motorcycles. The 3.5 hp Enfield Bullet, with its rhythmic engine sound, was highly popular for its power and reliability. In line with such flourishing dealerships leading to progressive manufacture in the aftermath of independence, the two business leaders set up Enfield India Ltd at Tiruvottiryur in North Madras.

The uncle-nephew duo also set up the Easun Engineering Co that focussed on electrical transmission equipment. Later, KRS and his sons took total charge of Enfield India and Eswaran and his family focussed on electrical transmission.

Enfield India flourished with the reliable workhorse, the Royal Enfield motorcycles. KRS also set up the K R Sundaram Industrial Estate in Tiruvottriyur, the first private industrial estate in the State, to produce components for Enfield India. But tagged to a single mother unit with limited production, the estate did not flourish. KRS’s eldest son, S. Sankaran, and, later, his younger son S Viswanathan took charge of managing the company. KRS’s second son S. R. Subramanian headed Madras Motors that distributed the company’s products at the national level. In the protected market conditions with limited competition, Enfield India flourished. Two other companies – Ideal Jawa Ltd and Escorts Ltd – focussed on motorcycles in the 2.5 hp and 1.75 hp range and built up good custom.

The attempts of Enfield India to produce motorcycles in the lower capacity did not succeed. The brand Prince did not take off nor did the Fantabulous scooter designed in-house.

Diversification into agriculture engines proved to be a success. The company set up a plant at Thoraipakkam to produce Villiers engines and it met with good demand. Viswanathan, who took control in the 1970s, embarked on expansion, investing in a large facility in southern Tamil Nadu, created production facilities at Ranipet and also spent on a corporate headquarters at Saidapet. Post-1973, with the petrol prices shooting up and with the low fuel efficiency of the Bullet, the going became tough. With a low capital base, with heavy dependence for orders from the government (Defence and Police), and with stiff competition from Jawa and Escorts, the company accumulated losses and struggled for survival. Thereafter it was a series of ups and downs for Enfield India till Eicher Group took control in 1990. After three years, Eicher group bought out the shares of Viswanathan. And revival began with the group focussing on the huge potential offered by  the two-wheeler industry where volumes have grown, from a few thousands to over 13  million in less than two decades.

Enfield India that pioneered motor cycle production in India almost six decades ago is now gearing up to evolve as a significant supplier of mobikes in the higher power ranges.

The plans of Siddharth Lal to focus on export markets in developed and emerging markets and in rural-urban and traditional youth segments hold promise ending years of low growth.

Enfield India has also opened a new factory at Oragadam spread over 50 acres.

Production capacity is expected to be to 250,000 by 2014. (Courtesy: Industrial Economist)