Blue Star, a leading player in India's air conditioning business, is betting for the sales to double in next four years from around Rs 27,500 crore at present as the disposable income in the hands of the middle class grows.
The company also said in its annual report that it will double the production of ACs at the Sri City plant in the Chittoor district of Andhra Pradesh by the end of this fiscal from the current 3 lakh units.
Blue Star's outlook for the Gulf region (GCC countries) remains positive, the company said, and is helping it diversify. "Despite challenges in Qatar and Malaysia due to construction restrictions and weak macroeconomic conditions respectively, Blue Star remains optimistic, fuelled by a positive economic outlook in the GCC region and its commitment to product diversification and market expansion", the annual report said. It offers turnkey solutions in MEP (Mechanical, Electrical, Plumbing, and Fire-fighting) projects in the region.
The excessive heatwave that has gripped various geographies this year is another factor that the company said is amplifying its future business outlook. "Given the changing weather pattern, resulting in hotter summers coupled with new and resilient product portfolio in residential and commercial air-conditioning and refrigeration, the Company is optimistic about its future business outlook."
Blue Star has projected a target of 25 percent rise in air conditioner sales during this season, as hotter-than-usual summer is expected to drive strong demand during the season.
The air conditioning major reported a strong FY24 riding on robust demand and new launches. It expanded its distribution network, ramped up R&D spend and raised funds through a Qualified Institutional Placement (QIP) last fiscal. In a conversation with Moneycontrol, Blue Star Managing Director B Thiagrajan had said in May this year that it does not intend to sacrifice margins to grow its market share.
The growth outlook for this year too appears robust with the company betting on growing faster than the market in FY25 and looking to improvement margin. Blue Star now aims to boost its market share to 15 percent by FY25.
Shares of Blue Star are higher by 77 percent so far this year and up 112 percent compared to last year.
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