Price Hike
Blue Star air-conditioner price hikes may be higher on volatile input cost
This story was originally published at 15:41 IST on 27 March 2025
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--Blue Star MD: Likely to hike room air-conditioner prices by 4-5% in April
--Blue Star MD: May hike air-conditioner prices on volatility in metal prices
--Blue Star MD: May hike air-conditioner prices on FX rate volatility
NEW DELHI – Having hiked room air-conditioner prices once in 2025 already, Blue Star may hike prices in April by 4-5% owing to volatility in metal prices and foreign exchange rates, its Managing Director B. Thiagarajan said on Thursday. Last week, the company was mulling over a rate hike of 2-4% to offset input price pressures.
The company had hiked the prices of its air-conditioners by 4% in February. "We are not in the financial markets or trading markets to raise prices every day. But I think prices will have to go up," Thiagarajan said. Other companies may follow suit once Blue Star ups prices, he added.
Thiagarajan said that whenever the stock market is volatile, speculation moves towards metal prices like gold and copper. "Our principle is that when it (prices) go up, we pass it on, when it comes down, we reduce," he said.
He further said that this volatility has had a role to play in its market share guidance, as the company also had to put the pursuit of profitability in the decision-making mix. The company does not intend to gain market share by absorbing input price increases at the cost of its margin guidance of 8.0-8.5%, Thiagarajan said. Unlike earlier years when Blue Star said a margin of 9.0-9.5% could be possible for the company, it is now down to 8.0-8.5% as it is absorbing part of the input costs.
In 2023-24, Blue Star had guided for a market share of 15% by FY25. "We had stated that we would move towards 15% market share in FY25, but later said that it won't happen in FY26. We are now saying that it will happen in FY27," said Thiagarajan. The company's market share in the air-conditioner segment is currently at 14%.
The company currently doesn't have visibility on the availability of compressors for the entire year. Thiagarajan expects India to be self-reliant in the compressor segment only in 2028. Blue Star currently expects a growth in sales of around 25% for the summer season this year. Should the growth go beyond this, Thiagarajan expects a shortage in compressor availability.
At 1502 IST, shares of Blue Star traded 0.3% higher on the National Stock Exchange at INR 2205. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Anand JC
Edited by Akul Nishant Akhoury
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