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Informist, Thursday, Mar. 6, 2025

KOLKATA - Air-conditioning and refrigeration major Blue Star Ltd. aims to increase its addressable market share in commercial refrigeration segment to 33-35% in the next three years, Managing Director B. Thiagarajan said Thursday. Currently the company has a market share of around 32% in this category.

"Our addressable market, where we have products in, is around INR 50 billion. This market is expected to grow by 20% CAGR (compound annual growth rate) till 2030, and our growth will be more than the market growth. We are adding product categories to boost growth," Thiagarajan said on the sidelines of the launch of an expanded range of commercial refrigeration products for the summer season.

Blue Star is also exploring the possibility of entering the ammonia-based refrigeration category, transport refrigeration category, and cooling vending machine categories which can increase its addressable market by another INR 3 billion to a total of INR 8 billion.

Apart from new products driving its growth in commercial refrigeration, Blue Star is also focusing on increasing its outlet count by FY26. The company is also aiming to increase its presence in smaller markets to drive sales growth. 

"The dairy and ice cream segment, pharmaceuticals industry, and quick service restaurants are leading the growth in commercial refrigeration and accounts for 70% of the market. But for the past six months, we are seeing increasing traction from quick commerce," Thiagarajan said.

Demand for refrigeration products in the quick commerce segment is expected to grow by 30% over the next 2-3 years, he said.

Anticipating demand for air conditioners to pick up in the upcoming summer, Blue Star is aiming to post 25% topline growth in 2024-25 (Apr-Mar), and is aiming at 20% revenue growth in FY26, he said. "We are going to have a high base effect in the coming financial year but we are confident of posting 20% growth in FY26," Thiagarajan said.

The room air-conditioning category, which accounts for 30% of the company's topline, is expected to grow by 19% CAGR till 2030, and the commercial air conditioning segment is expected to grow by 12% CAGR till 2030.

"We are confident of beating the market growth, and our market share in air conditioning is expected to increase to 14.25% next year," Thiagarajan said.

Currently, Blue Star has a market share of 13.75% in air conditioning, which is expected to rise marginally to 13.9% by March-end. In FY26, the company has earmarked a capital expenditure of over INR 4 billion. Of this, INR 2 billion will be spent to increase capacity at its Sri City plant, and INR 2.03 billion is expected to be spent on the commercial refrigeration and air conditioning segments.

Blue Star had reported a consolidated net profit of INR 1.33 billion for the December quarter on revenue of INR 28.07 billion. On the National Stock Exchange, shares of the company closed at INR 2,144.15, up 0.6% from Wednesday.  End

Reported by Avishek Rakshit

Edited by Ashish Shirke

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