Blue Star Expands Room AC Production, Targets 14.3% Market Share

Chennai, Feb 25 (PTI) Air conditioners and commercial refrigeration system maker Blue Star Ltd has planned to take up gradual expansion of its manufacturing facilities to 1.8 million units as it aims to garner a market share of 14.3 per cent in the room air conditioner segment by FY26, a top official said on Tuesday.

The company currently has a production capacity of about 1.4 million room air conditioners.

"With India set to add approximately 450 million middle-class consumers by 2030, the market for room ACs is at its inflection point and is poised to grow exponentially over the next few years. Positive trends such as the expansion of the housing sector, increased adoption of renewable energy, and growth in the rural economy are also expected to shape the industry's future," Blue Star Ltd Managing Director B Thiagarajan said.

He was here to unveil 150 models of room air conditioners including 'flagship premium' range in view of the forthcoming summer season.

"We continue to make significant investments in R&D, manufacturing as well as supply chain to enhance competencies and capabilities to effectively leverage the growing demand. 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 added.

The company has a cutting-edge manufacturing unit in neighbouring Sri City in Andhra Pradesh which commenced commercial production in January 2023. Besides, the company operates two dedicated plants in Himachal Pradesh for manufacturing room air conditioners.

These facilities are equipped with advanced automation technologies, including state-of-the-art assembly lines and material handling systems, along with comprehensive initiatives focused on Internet of Things integration and digitalisation.

"With these plants, Blue Star's production capacity is currently around 1.4 million room ACs, with plans for gradual expansion to 1.8 million units in near future ," the company said.

The comprehensive range of air conditioners launched were in the 3-star and 5-star categories and are available in various cooling capacities from Rs 28,990 onwards.

Nearly 40 models of smart Wi-fi air conditioners have unique features including 'customised sleep' where a customer can preset the temperature, fan speed, cool mode and switch on or off every hour for 12 hours ensuring uninterrupted sleep. The air conditioners also come with Voice Command technology in which customers can operate using Amazon Alexa or Google Home using English or Hindi voice commands.

Thiagarajan on the occasion also unveiled a formidable range of flagship models including 'Super Energy-Efficient ACs, heavy-duty ACs and AC's with anti-virus technology.