CHENNAI: Air conditioner and commercial refrigeration manufacturer Blue Star Limited plans to expand its manufacturing capacity in its Sri City plant with a capex of nearly Rs 200 crore, in line with demand growth in room air conditioners (A/Cs).
The company aims to add an additional three lakh units capacity in the 2024-25 financial year, doubling from its current capacity in Sri City. Along with six lakh units at Himachal facility, the company’s total capacity is expected to go up by 12 lakh units annually.
B Thiagarajan, managing director of Blue Star, said room A/C volume in the upcoming summer season will grow 20%, recovering from moderate demand last year. Its volume in the room A/C this year (FY24) is expected to be 10 lakhs and is expected to touch 13 lakh units in FY25. However, he cautioned the Lok Sabha polls might affect the demand.
“The demand from first time buyers and from non-metro cities is significant and is driving the growth of A/C sales in the country.” A new scheme affordable A/C is also on the cards for post election as per reports and might spur demand in the country, he added.
Blue Star currently has about 13.75% share in the room A/C market, and stands second big player. The company aims to capture at least 15% of the market share in two years.