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Informist, Tuesday, Mar. 4, 2025

 

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--Blue Star MD:Aim for smart air-conditioners to have 30% shr in FY26 sales 
--Blue Star MD: Aim for 15.5% share in air-conditioners market by FY28 
--Blue Star MD: Expect co's air-conditioner market share at 13.9% by Mar-end 
--Blue Star MD: Uncertainty in China supply-chain a cause for concern 
--Blue Star:Consumer finance driving air-conditioner sales across categories 
--Blue Star MD: Expect 35% revenue growth in Jan-Mar led by summer demand 
--Blue Star MD: Aim to sell 2 mln air-conditioners in FY26 
--CONTEXT: Blue Star MD Thiagarajan's comments in interaction with Informist 
--Blue Star MD: Smart air-conditioners to aid growth FY26 onwards

 

By Narayana Krishna

 

HYDERABAD - Blue Star Ltd. is planning to increase its range of smart room air conditioners, as it aims to take the share of this product category in its total sales to 30% by 2025-26 (Apr-Mar), B. Thiagarajan, managing director of the air-conditioning and refrigeration major, said. Speaking to Informist on the sidelines of an event, Thiagarajan said the company sold only 2,000 smart air conditioners in FY24, but it expects sales under this category to touch 100,000 units in FY25. 

 

The company expects smart air-conditioner sales to touch 500,000 units in FY26, the Blue Star MD said. It expects total air-conditioner sales to touch 1.5 million units in the current fiscal and 2 million units in FY26, he added. Blue Star on Tuesday launched 150 room air conditioner models in Hyderabad.

 

Thiagarajan said the company is aiming to achieve a room air-conditioner market share of around 13.9% in the current financial year ending Mar. 31, and of 15.5% by FY28-end. 

 

Thiagarajan said the company has reduced the price gap between normal and smart air conditioners to INR 990 from earlier INR 3,000, resulting into huge demand for the latter category. Smart air conditioners are equipped with additional chipsets with features like mobile and Wi-Fi-enabled operating features. He said demand for the smart category of air conditioners is growing and this category is likely to aid the growth from FY26 onwards.

 

The company said this year's summer is likely to be warmer due to a likely surge in temperatures, and air-conditioner sales may go up significantly. It expects 35% growth in its revenue in the Jan-Mar quarter led by the summer demand. Easy availability of consumer finance and instruments like credit cards are driving air-conditioner sales across all segments, Thiagarajan added.

 

Refering to concerns on growth in consumption, Thiagarajan said tier-III, tier-IV and tier-V cities and towns are seeing fast growth, contributing to 65% of the company's total sales. 

 

Thiagarajan said while there are worries on consumption growth across sectors, the air conditioner segment is an exception. Further, he said there is a possibility of a rise in prices of commodities in the near term due to the ongoing geopolitical and trade tensions. He said the industry still depends on China for importing some of the raw materials and uncertainty in the supply-chain from the country could be a cause for concern. However, Blue Star is confident of maintaining its operating margins at around 8.0-8.5% levels in FY25 and beyond, he said.

 

Blue Star had reported a consolidated net profit of INR 1.33 billion for the December quarter on revenues of INR 28.07 billion. On Tuesday, shares of the company closed 3.4% higher at INR 2,100.65 on the National Stock Exchange.  End

 

Edited by Tanima Banerjee

 

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