Blue Star aims to capture 15% of the room air conditioners market by FY25

Blue Star Ltd is aiming to achieve 15 per cent market share in room air conditioners by FY2025, according to Managing Director B Thiagarajan.

As part of its growth strategy, Blue Star also plans to tap into the north Indian market, including Punjab and Jammu and Kashmir. He said that the company commands a market share of 14 percent in J&K.

Blue Star Ltd has unveiled a complete range of air conditioners for the summer season, including a "best-in-class affordable" range and a "flagship premium" range. A total of 75 models have been launched by the company across various categories of inverter and fixed-speed air conditioners, as well as across a variety of price points to satisfy every segment of consumers, he said.

In 2011, Thiagarajan said, the company entered the residential air conditioning market.

"Durability, affordability, reliability, energy efficiency and being aesthetically superior are some of the qualities of our air conditioners," he said.

As a strong proponent of the Atmanirbhar Bharat Abhiyan, the company has set up a manufacturing facility at Sri City in Andhra Pradesh through its wholly-owned subsidiary Blue Star Climatech Ltd.

In January 2023, Blue Star Climatech began commercial production of room air conditioners at this facility, from which Blue Star will source some new products.

By being close to southern ports, Sri City will enable efficient logistics management by ensuring speedy movement and containing costs, according to a statement.

According to the statement, the company has already invested approximately Rs 350 crore in this plant. It will manufacture about 3 lakh units in its first year and gradually ramp up production to 1.2 million units thereafter.

With this plant in place, Blue Star intends to leverage the synergies between the company and this plant, to enable Blue Star to further accelerate growth in room ACs segment, especially in Tier 2, 3, 4 and 5 markets, apart from Tier 1, Thiagarajan said.

"Blue Star will continue to invest in expanding distribution footprint, enhancing R&D capabilities and brand building. All of this, in turn, will enable us to roll out affordable best-in-class room ACs. Our new range of room ACs for 2023 strongly recapitulates our focus in this direction," he said.

To offer a comprehensive solution to any consumer's needs, the company has launched a series of flagship models including 'super energy-efficient ACs', 'heavy-duty ACs', 'smart ACs', 'ACs with hot and cold technology', and 'ACs with anti-microbial filters'.

Despite extremely low temperatures, the company's air conditioners with 'hot and cold inverter technology' operate. Specifically for markets such as Srinagar, Blue Star has developed a model that can operate at temperatures as low as minus 10 degrees Celsius.