B Thiagarajan, Joint MD, Blue Star is not too perturbed with new players like Havells coming into the air conditioning market with their acquisition of Lloyd’s consumer durable business. According to him, competition is always healthy for any business because it brings in pricing efficiency and product quality into the market, said Thiagarajan.
The company’s current market share is around 11.5 percent but, according to him, each company calculates the market share differently peening on the products they manufacture.
In FY17, despite pressure of demonetisation and global uncertainities, the air conditioner (AC) market share for the company grew 35 percent compared to the overall market growth of 20 percent, he said. Next year, too, the AC market is expected to grow by around 15 percent and Blue Star aims to grow at a better rate.
With this kind of growth, and penetration at less than 4 percent, the CAGR for the next 10 years would be around 15 percent, which is sure to attract lots of competitors, said Thiagarajan.
Talking about inverter AC segment, he said it would continue to see good growth. If all the room air conditioners market grew by 35 percent, then inverter AC for them grew by 60 percent.For full interview, watch video
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