Royal Enfield Expands Brazilian Presence with Second CKD Assembly Unit in Manaus

Key Takeaways from the Announcement

• New CKD facility in Manaus with Grupo Multi, in addition to Dafra, to increase production capacity in Brazil.
• The partnership with Grupo Multi will create direct and indirect jobs, boosting the local economy.
• Royal Enfield aims to expand its dealership network to 36 stores across Brazil by the end of 2024.

This addition bolsters Royal Enfield’s capacity to meet rising demand in Brazil, its largest market outside India, and emphasises the brand’s commitment to expanding in Latin America.

The new Manaus facility will complement the existing CKD unit operated by Dafra, reinforcing Royal Enfield’s production capabilities in the region. Grupo Multi's established manufacturing infrastructure in Brazil was a strategic factor in selecting the company as a partner. The new assembly plant will not only enhance production but is also projected to generate significant employment, supporting local economic development in São Paulo, Louveira, and Manaus.

Commenting about the announcement, Gabriel Patini, Executive Director for Latin America at Royal Enfield, said, "We are introducing a second partner for production; now we will have both Dafra and Grupo Multi assembling motorcycles to more swiftly meet the demands of the Brazilian market. The new CKD reinforces our commitment to bringing all models that make sense to our market and delivering more promptly to our customers so they can quickly enjoy the Royal Enfield lifestyle to the fullest. Therefore, the CKD partnerships with Dafra and Grupo Multi are crucial for Royal Enfield to take this step forward. We want our installed capacity to be fully operational as soon as possible." 

Royal Enfield plans to expand the dealerships in Brazil to 36 stores by the year-end of 2024, improving after-sales and readjusting preparatory measures for new models such as Himalayan 450, Shotgun 650, Guerrilla 450, Classic 650, and Bear 650. This strategic growth should be able to facilitate the increasing demand from the consumers for the signature motorcycle experience for the brand's customers in Brazil.

About Royal Enfield

Royal Enfield was founded in 1901 and is the oldest motorcycle brand still in production. It remains a niche manufacture specialising in mid-size motorcycles from 250cc to 750cc. Known for its classy yet contemporary designs, Royal Enfield provides an accessible riding experience which the company refers to as "Pure Motorcycling." Headquartered in Gurgaon, Haryana, the company is an Eicher Motors group company with over 2,000 stores in India and nearly 850 stores in the international markets, with state-of-the-art production facilities in India and six CKD assembly plants globally. The brand continues to build new models and is now a platform for iconic events like Motoverse in Goa, bringing all riders together worldwide.

About Grupo Multi

Multi Group is a diversified electronics and IT player with more than 5,500 products in its portfolio across various categories. With State of the Art Production facilities within Brazil's Manaus Free Trade Zone and an engineering lab in China, focused solely on the needs of Royal Enfield CKD operations, it is strengthening its position in the automotive segment.

Key Takeaways from Artemis Medicare Expansion:

• Artemis Medicare partners with Raipur Stone Clinic to develop a new hospital in Raipur, Chhattisgarh, adding over 300 beds to its network. 
• Raipur Stone Clinic will build the hospital, while Artemis will invest Rs 110 crore in medical equipment and capital expenses.
• The hospital will be managed jointly under a 15-year agreement, with revenue and costs shared between both parties.
• This partnership supports Artemis Medicare’s strategy to expand its healthcare services and cater to the growing demand for quality healthcare across India.

The partnership will be carried out under a Long Term Operations & Management and Medical Services Agreement, aimed at jointly managing a new hospital in Raipur, Chhattisgarh.

Currently, the Company operates a total of 842 beds across its facilities, including a 700+ bed super speciality hospital in the Delhi NCR region, which is accredited by both JCI and NABH. The Company also runs a joint venture with Philips under the Artemis Cardiac Care brand. 

The new hospital in Raipur will be developed by Raipur Stone Clinic, which will be responsible for building the infrastructure. The Company, on the other hand, will invest approximately Rs 110 crore in medical equipment and related capital expenses. The hospital is expected to be completed in about one year and will add more than 300 beds to the Artemis Hospital Group once operational.

The operations of the hospital will be managed jointly on a revenue and cost-sharing basis, with both parties working together to deliver medical services. The initial agreement is set for 15 years, with an option for a further 15-year extension at the Company's discretion.

The expansion is aligned with the Company’s strategy to grow its presence in key locations and meet the increasing demand for quality healthcare services across India. The partnership with Raipur Stone Clinic marks a significant step in the Company's efforts to strengthen its footprint and provide world-class healthcare to a broader population.

About Artemis Medicare Services Limited:

Artemis Hospital, established in 2007, is Gurgaon’s first JCI and NABH accredited multispecialty healthcare facility, spread across 9 acres with over 550 beds. Renowned for its state-of-the-art infrastructure and research-driven medical practices, Artemis offers a comprehensive range of inpatient and outpatient services. The hospital combines cutting-edge technology with the expertise of top doctors, ensuring world-class care in a patient-centric environment. Known for its advanced medical and surgical interventions, Artemis has become one of India’s most trusted healthcare providers, delivering quality, affordable healthcare while prioritising patient comfort and well-being.

Key Takeaways from Crown Lifters Orders:

• Crown Lifters has ordered two 260 MT crawler cranes, with deliveries scheduled for November 2024 and January 2025.
• The first crane is already contracted for Larsen & Toubro’s Hydrocarbon division, while the second unit is in final discussions with multiple clients.
• The total cost for the two cranes is Rs 11.575 crore, bringing the company’s crane capital expenditure for FY 2024 to Rs 54.575 crore.
• The purchase responds to increasing demand for heavy construction equipment in sectors like cement, steel, solar, refinery, ports, airports, and metro projects.

The first crane has already been contracted for use with Larsen & Toubro, Hydrocarbon division, while the second unit is currently under final discussions with multiple clients.

The total cost for these two cranes is estimated at Rs 11.575 crore, bringing the company’s total crane capital expenditure for the current financial year to Rs 54.575 crore. This purchase comes in response to a growing demand for heavy construction equipment across sectors such as cement, steel, solar, refinery, ports, airports, and metro projects. 

The company continues to expand its fleet in line with the increasing need for rental heavy machinery, particularly in the post-monsoon period.

About Crown Lifters Limited:

Crown Lifters Limited, established in 1984 by Shri Kamruddin V Jaria, is a leading equipment rental company based in Mumbai, India. Specialising in the hire of construction machinery, the company has grown significantly over the years, offering cranes ranging from 75 MT to 800 MT. Under the leadership of Karim K. Jaria, Chairman & Managing Director since 2007, and Nizar N. Rajwani, CFO & Executive Director, Crown Lifters has expanded its fleet and operations. The company serves major sectors including infrastructure, energy, and cement, and is listed on the National Stock Exchange. Crown Lifters is committed to providing cutting-edge technology and exceptional service to its clients.

Key Takeaways from the Joint Venture

• Reliance Industries and Disney have signed a joint venture; the two firms have merged their major entertainment and sports assets to solidify a greater hold in India's media arena.
• RIL, through its wholly-owned subsidiary RISE, has divested 65% equity stake in Football Sports Development Limited to Viacom18 for ₹94.54 crore, while FSDL continues to be an operational entity controlled by RIL
• RIL raised its stake in Viacom18 to 70.49% by purchasing Paramount Global's 13.01% equity for ₹4,286 crore.

As part of the venture, RIL and its subsidiary, RISE Worldwide Limited, sold their 65% equity stake in Football Sports Development Limited (FSDL) to Viacom18 Media Private Limited, a material subsidiary of Network18 Media & Investments Limited, for ₹94.54 crore. This investment was subsequently transferred to Star India Private Limited (SIPL) through a prearranged scheme, allowing FSDL to remain under RIL’s control.

The company also acquired 63.16% of holding in Star Television Productions Limited, an existing Disney shareholder, for ₹ 211.59 crores. Intellectual property rights in trademarks "STAR" and "HOTSTAR" are held by STPL. The subsequent process of amalgamation is likely to merge STPL with SIPL. Subsequently, the shares of SIPL will be taken over by RIL as consideration for this amalgamation, which again will further consolidate the brand assets held by the former.

In a separate transaction, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for ₹4,286 crore, raising its ownership in the media company to 70.49% on a fully diluted basis. Moreover, RIL made a substantial investment of ₹11,500 crore in SIPL, receiving 26.05 crore equity shares in return. Following this, SIPL issued 74.61 crore additional shares to Viacom18 under a composite scheme, finalising SIPL’s control structure.

The joint venture’s new ownership distribution stands with Reliance holding 16.34%, Viacom18 at 46.82%, and Disney owning 36.84% in SIPL. This partnership represents a major strategic move, strengthening Reliance’s position across sports, entertainment, and digital media in India.

About Reliance Industries Limited

Reliance Industries Limited is a multinational conglomerate based in Mumbai, India. This is one of the biggest companies in India, dealing with operations of all kinds. Reliance firms have dominated all the sectors linked to the energy line, more especially in refining, petrochemicals, exploration and production, and renewable energy. Retail is another sector that has been advanced by Reliance, providing consumer electronics, apparel, groceries and e-commerce services. Some ventures by Reliance include telecommunications, 4G and 5G wireless services, and financial services. Reliance was also known to publicise its pioneering business practices and contributions toward India's economic development. The company is a market leader in many lines of business. It follows the path of ensuring that its operations promote sustainable development and social responsibility in the communities that it operates in.