Royal Enfield restructures top management to compete against global brands

The iconic two-wheeler Royal Enfield, which has a cult following in India and abroad, is witnessing the entry of several global two-wheeler companies the American giant Harley Davidson and British bike maker Triump and Japanese two-wheeler makers like Honda, Suzuki and Yamaha.

To ward off the competition, The Chennai-based unit of Eicher Group which owns the Royal Enfield has reportedly put in place a flat management structure with independent senior vice-presidents leading the departments of markets, products and industry. A report in The Economic Times states that the recast, barely eight months after the appointment of Venki Padmanabhan as chief executive, is part of the former British motorcycle manufacturer's strategy to ramp up capacity and product portfolio to meet competition.

The report quoted Padmanabhan as saying "Part of my excitement is to reinvent one of the oldest motorcycle manufacturers as a modern automotive company. It is a flat structure with four key people in the team, including me, who will run the company seamlessly."

It was reported that Shaji Koshy takes over as senior vice-president of the markets division, after his role as senior vice-president of sales and marketing for the last five years. The report mentioned that Natarajan Krishnan, the architect of the sought-after Unit Construction Engine, rejoins the company as senior vice president of the products division after a five-year stint with General Electric. It was mentioned that Krishnan will lead research and development and explore the possibility of making bigger motorcycles and even a relaunch of diesel motorcycles. Another executive rejoining Enfield is Balakrishnan Govindrajan, who has been appointed senior vice-president for industry. Govindrajan, who has worked with Suzlon in China, Pondicherry and in a JP Morgan-run company , will also oversee purchase, supply chain, manufacturing, addition of capacity and the upcoming new plant.

The report stated that Padmanabhan said "The new structure means we can move fast; we can be nimble and focus on what the customer wants. We are building the right capability and hiring the right talent.’’ According to report, the experts feel that a new state-of-the-art plant, which may become operational by Q1 of 2013, apart from the organisational structure will bring about a paradigm shift in the way Enfield operates.