Blue Star Projects Strong Growth with Increased Production Capacity
India: Blue Star, an air conditioning and commercial refrigeration company, anticipates closing the current fiscal year with sales volumes reaching 1.5 million units, a sharp rise from 1 million units in FY24. The company is maintaining a INR 200 crore (USD 22 million) capital expenditure for FY26, focusing on expanding its Sri City factory, enhancing R&D, and advancing digitalisation. Blue Star recorded around 35% growth in Q2 and Q3, with expectations of continued momentum in Q4. "As we enter Q4, the market remains strong, marking an unprecedented year for the air conditioner industry. With a promising summer ahead, the room AC market is expected to record 20-25% growth," said B Thiagarajan, Managing Director of Blue Star Ltd.
Despite supply constraints affecting market share last summer, Blue Star recovered in Q2 and Q3, aiming to close the fiscal at 13.8% and target 14.25% in FY26. Its Sri City plant, currently operating at full capacity with 650,000 units, will scale up to 825,000 units next year and reach 1.2 million units by FY27, while the Himachal facility has reached its peak production capacity. The company has also allocated INR 32 crore (USD 3.6 million) for R&D this year, increasing to INR 51 crore (USD 5.8 million) next year, with additional investments in digitalisation and technology integration.
Source: The HINDU Business Line