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(PTI) Eicher Motors today said it has suffered a production loss of 11,200 Royal Enfield motorcycles so far due to heavy rains and flooding in Chennai.
“Due to heavy rains and flooding in Chennai, both of Royal Enfield’s production facilities in Thiruvottiyur and Oragadam were shut since December 1, 2015.”
“The company resumed production of motorcycles on December 7, 2015. However, due to a high rate of absenteeism by the company’s employees and issues with our local suppliers, the company will be running at approximately 50 per cent capacity this week, and plans to be back up to 100 per cent capacity by next week,” Eicher Motors Ltd said in a regulatory filing.
Elaborating on the loss suffered by the company due to floods, it said: “Prima facie, there is no damage to equipment or property and all our employees are safe and secure. The company has had production loss of 7,200 motorcycles due to the closure of both the company’s manufacturing facilities between December 1— 6, 2015.”
Many parts of the supply chain still continue to be affected due to the aftermath of floods. Due to the rains, in November, the company lost production of 4,000 motorcycles.”
The company added that while it continues to monitor the situation closely, it “would be able to assess the insurance loss in due course, once the full normalcy is restored.”
Eicher Motors shares were trading up 1.13 per cent at Rs 16,410 apiece, in the morning session on BSE.
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