Air conditioner manufacturer Blue Star on Friday said the coronavirus outbreak is unlikely to have any impact on its supply chain in the short run as it has already stocked up on components. The company also said it looking to increase its market share to 15 per cent in the next 4-5 years from 12.5 per cent currently.
"In December 2019, we had increased the quantities of components ahead of the Budget in February. It fortunately will help us to carry on till March-end. However, we will have a window where I will run out of components between April 15 and 30, but since the demand (also will come down), I am not so much worried," the company's Managing Director B Thiagarajan told reporters here.
He said in the summers, the industry sees 20-25 per cent growth in sales of ACs but is likely to witness a 5-10 per cent correction in demand this year due to economic uncertainty amid the virus pandemic.
Thiagarajan said the company is targeting to increase its market share to 15 per cent by FY24 in the domestic air conditioner segment from the present 12.5 per cent.
"Currently we enjoy 12.5 per cent market share in the residential air conditioners (segment) and are expecting to close this financial year with 12.75 per cent. In FY21 our target is 13 per cent market share and in FY24 we are targeting 15 per cent," he said.
Talking about price hikes, he said in February Blue Star had increased prices by 3-5 per cent due to rise in input cost and also as ocean freight went up by 65 per cent, the company had to airlift some components.
The company on Friday launched a new range of residential air conditioners.
The 3-star inverter split air conditioners are available at a starting price of Rs 31,990.
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