Blue Star to Increase its Room AC Production, Plans Expansion at Different Plants
Blue Star Limited, an Indian manufacturer of Air Conditioners (ACs) and commercial refrigeration systems, will be expanding its room AC production capacity at its manufacturing plants in India.
Blue Star has multiple manufacturing plants in India. The company has manufacturing plants in Dadra, Kala Amb in Himachal Pradesh, Wada in Maharashtra, Ahmedabad in Gujarat, and Sri City in Andhra Pradesh.
Blue Star to Increase Annual AC Production to 1.8 Million Units
Blue Star is expanding its AC manufacturing capacity to 1.8 Million Units (MUs) per annum from the current 1.4 MUs of ACs annually. Media reports quoted Mr. B. Thiagarajan, Managing Director of Blue Star, saying, “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”.
Blue Star Allocates Rs. 350 Cr. to Expand Capacity in Sri City and Himachal Pradesh
As a step towards achieving the aforementioned target of 1.8 million units, the company is expanding its production capacity at its plants in Sri City and Himachal Pradesh.
Blue Star will invest Rs. 200 crore to expand operations at its Sri City plant. The company will increase the plant’s annual capacity to 12 lakh units from the current 8.5 lakh units.
Additionally, the company plans to invest Rs. 150 crore for expanding Air Conditioner production at its plant in Kala Amb, Himachal Pradesh, although specific details regarding the capacity expansion have not been disclosed.
The company has not specified any details regarding completion period of this expansion.
Blue Star Targets 14% Market Share in FY-26, 20% Growth in FY’26
The room AC market share of the company is projected to grow from 13.75% to 14.25% in FY-26. Speaking about the revenue growth of the company, Mr. B. Thiagarajan said “We are aiming at 20 per cent growth in FY’26. We estimate to end the current fiscal with 25 per cent growth backed by robust growth seen in the room air-conditioner business”.
About Blue Star Limited: Blue Star, established in 1943, offers a wide range of air conditioning systems for residential, commercial, and industrial applications, as well as refrigeration solutions for food storage, pharmaceutical, and industrial use.
