Blue Star Expects Festive Surge in AC Demand
India: Blue Star Ltd. anticipates an increase in demand for air conditioners during the upcoming festive season. Although this demand may not reach the peak levels experienced in summer, it remains strong. The company reported significant growth in the air conditioning sector, noting an over 50% increase during the summer months. Following this surge, demand has continued to be robust, particularly in Tier-3, Tier-4, and Tier-5 markets.
This sustained demand can be attributed to the relatively low penetration rates of air conditioners in India., currently estimated at around 7–8%. Thiswhich figure is expected to more than double over the next four years. Contributing factors include the urban heat effect, which has resulted in rising temperatures in smaller towns, creating uncomfortable conditions during the summer months. Additionally, high humidity levels throughout the year exacerbate the issue, as many homes lack adequate cross ventilation.
Over the last 15 years, the operational costs of air conditioners have significantly decreased due to energy efficiency programmes, which have supported greater market penetration.
Source: NDTV