Blue Star Ltd a leading manufacturer of air conditioners and commercial refrigeration systems has announced plans to gradually expand its manufacturing capacity to 1.8 million units of room air conditioners (ACs) as part of its strategy to capture a 14.3% market share by FY26. The company currently has a production capacity of 1.4 million units.
Key Highlights of Blue Star’s Expansion Plan
- Capacity Expansion: Blue Star aims to increase its production capacity from 1.4 million to 1.8 million units to meet the growing demand for room ACs in India.
- Market Share Goal: The company is targeting a 14.3% market share in the room AC segment by FY26.
- R&D and Manufacturing Investments: Blue Star is investing significantly in R&D, manufacturing, and supply chain to enhance its capabilities and leverage the growing demand for air conditioners.
Driving Factors for Growth
B Thiagarajan, Managing Director of Blue Star Ltd highlighted several factors driving the growth of the room AC market in India:
- Rising Middle-Class Population: India is expected to add 450 million middle-class consumers by 2030, creating a massive demand for room ACs.
- Housing Sector Expansion: The growth of the housing sector is increasing the adoption of air conditioners.
- Renewable Energy Adoption: Increased focus on energy-efficient and sustainable cooling solutions.
- Rural Economy Growth: Rising incomes in rural areas are contributing to higher demand for room ACs.
“The market for room ACs is at its inflection point and is poised to grow exponentially over the next few years,” said Thiagarajan.
State-of-the-Art Manufacturing Facilities
Blue Star operates advanced manufacturing units equipped with cutting-edge technologies:
- Sri City, Andhra Pradesh: A state-of-the-art facility that commenced commercial production in January 2023.
- Himachal Pradesh: Two dedicated plants for manufacturing room ACs, featuring advanced automation, IoT integration, and digitalization.
These facilities currently produce 1.4 million units annually, with plans to expand to 1.8 million units in the near future.
New Product Launches
Blue Star unveiled 150 models of room air conditioners, including its flagship premium range, ahead of the summer season. The new range includes:
- 3-Star and 5-Star ACs: Available in various cooling capacities, starting at ₹28,990.
- Smart Wi-Fi ACs: Nearly 40 models with unique features like customized sleep settings and voice command technology (compatible with Amazon Alexa and Google Home in English and Hindi).
- Flagship Models: Includes super energy-efficient ACs, heavy-duty ACs, and ACs with anti-virus technology.
Innovative Features
- Customized Sleep: Allows users to preset temperature, fan speed, and cooling modes for up to 12 hours, ensuring uninterrupted sleep.
- Voice Command: Enables users to operate ACs using voice commands in English or Hindi.
- Anti-Virus Technology: Provides enhanced air purification for healthier indoor environments.
Confidence in Future Growth
Thiagarajan expressed confidence in Blue Star’s ability to outperform the market, citing its extensive product range, technological advancements, and strategic investments.
“We are confident that our extensive range of room ACs, covering all consumer segments and price points, will enable us to grow at a faster pace than the market,” he said.
Looking Ahead
Blue Star’s expansion plans and innovative product launches position the company to capitalize on the growing demand for air conditioners in India. By focusing on energy efficiency, smart technology, and advanced manufacturing, Blue Star aims to strengthen its market leadership and contribute to India’s transition to sustainable cooling solutions.