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Informist, Tuesday, Apr. 7, 2026

 

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--Blue Star launches new range of room air-conditioners 
--Blue Star MD: Input cost has gone up 13%, need to pass it on to customers 
--CONTEXT: Blue Star MD Thiagarajan's comments at product launch 
--Blue Star MD: Part of cost pressure passed on, rest when summer picks up 
--Blue Star MD: Worried West Asia war-led inflationary burden may hit demand 
--Blue Star MD: Sentiment already hit in states like Kerala on West Asia war

 

NEW DELHI – Having hiked prices of room air-conditioners by around 5% already in January, Blue Star Ltd. will hike prices by another 8% in the near term after the summer season picks up to pass on the burden of rising commodity prices, Managing Director B. Thiagarajan told reporters at a press conference on Tuesday. "Due to the (West Asia) war, right now, like polystyrene, many petroleum-based plastics, those costs are going up," said Thiagarajan. He said input costs have increased 13% since the turn of the year.

 

The ongoing war in West Asia has led to a roughly 50% increase in crude oil prices and industries using crude oil-linked products are considering price hikes to pass on this impact. A hike in the near future would be the third price hike taken by air-conditioner firms in the last six months. Blue Star flagged concern that consumer sentiment could be hampered by the inflationary burden that the war in West Asia could create.  

 

The Centre had cut goods and services tax on air-conditioners in September to 18% from 28%, which caused a reduction in prices of room air-conditioners. Thiagarajan termed this a silver lining, especially in the context of the multiple price hikes taken by companies, which they wouldn't have been able to do if not for the leeway provided by the GST cut. 

 

Additionally, Thiagarajan said the war was already affecting consumer sentiment. He gave the example of Kerala, where sales have dropped in the first five days of April. For the air-conditioner industry, the first hurdle is that the summer season must pick up. "I know the temperature should have gone up (by now)...Second (hurdle) is that the war has to stop," Thiagarajan said. 

 

Thiagarajan expects the air-conditioner industry to grow 20% in 2026-27 (Apr-Mar), primarily because of weaker sales in FY26. The company is targeting a market share of 15% in the segment, up from around 14% currently.

 

Tuesday, Blue Star showcased a new range of room air-conditioners, strengthening its presence in residential and commercial cooling segments. The company launched 125 models of room air-conditioners, including a premium range. 

 

"Tier 3, 4, and 5 markets are emerging as key growth engines, outpacing Tier 1 and 2 cities, albeit on a smaller base," the company said. The room air-conditioner industry is expected to grow to 30 million units by FY30, up from 14 million units currently. 

 

For the December quarter, Blue Star had reported consolidated net profit of INR 806.60 million on revenue of INR 29.25 billion. Tuesday, its shares closed 1.6% lower at INR 1,540.50 on the National Stock Exchange.  End

 

Reported by Anand JC and Shakshi Jain

Edited by Akul Nishant Akhoury

 

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