Mumbai : Affordability is the new mantra of Blue Star Limited, which launched its latest range of “Best-in-Class Affordable” and “Flagship Premium range” including Smart room airconditioners for 2023, amidst targeting the price-sensitive and first-time buyers population seeking to beat the summer heat.
“Growth is being driven by the aspirational middle class and we should be in the affordable category to meet their needs,” B. Thiagarajan, Managing Director said here recently while adding that the company has launched around 75 models across the spectrum of inverter (eliminating need for voltage stabilizer), fixed speed and window A/Cs across price points catering to every consumer segment.
“This is the golden period for the A/C industry and we have outperformed the market since our entry into the residential A/Cs segment in 2011, while presently targeting a market share of 15% by FY25,” he said while highlighting also the growing commercial consumer segment including hospitality, boutiques, date centers etc.
“Orders are flowing in Pan-India amidst the continuing demand for A/Cs, and India still offers a significant potential for growth in the room A/Cs segment.”
Pointing out that all Blue Star A/Cs are even “Smart Ready” for upgradation to Smart A/Cs which work through a smart phone instead of remotes, he said “With Voice Command+ technology, customers can operate their A/Cs through Smart devices using “Amazon ALEXA” or “Google Home” in English and Hindi.
The company has so far invested approximately Rs 350 crores of its planned Rs 500 CAPEX over next few years in its new state-of-the-art “Sri City Plant” in Tamil Nadu, he said, adding that this plant began commercial production on January 1, 2023 to manufacture 3 lakh units in the first year and scale up production gradually to 1.2 million units thereafter.
“While aligning itself with the “Make in India” initiative and leveraging on the Indian Government’s PLI scheme, Blue Star intends to also leverage the synergies between the Company and the Sri City Plant to further accelerate growth in the room A/Cs segment, especially in the Tier 2,3,4 and 5 markets apart from Tier I while continuing to invest in expanding its distribution footprint, enhancing R&D capabilities and brand-building.”
He said that besides adopting appropriate promotional methods online/offline to enhance offtake across all tiers, the company is making aggressive investments in e-commerce channels as a prominent player and plans to sustain its investments through ‘in-store’ demonstrations in retail stores since this is immensely beneficial in enhancing offtake.
Where exports are concerned, the company is focusing on the Middle East as its consumer for commercial A/Cs, while China remains its main competitor alongside still being a supplier to India for compressors, besides also copper tubes and vents that are supposed to be produced in India soon, Thiagarajan said.
The company is also emphasizing sustainability initiatives including installing an advanced affluent treatment plant, rainwater harvesting and solar power, besides the A/C inverter range using “R-32 eco-friendly refrigerant.”
“Due to the ‘Energy Labeling Program’, energy efficiency has improved and close to 80% energy savings has been achieved through such technology, besides the Indian Government also being a participant in the PLI Scheme,” he added.
