Blue Star Reports Robust Growth in HVAC-R Market with During Festive Period

India: AC maker Blue Star Managing Director, B Thiagarajan, announced a nearly 30% growth in room air conditioner (RAC) sales during the festive season, driven by steady pricing and accessible consumer financing, with almost half of the sales funded through consumer loans.  This surge comes after a period of slower growth during the summer, with the RAC segment now expected to achieve robust growth of over 25% in FY2024-25. 

Thiagarajan highlighted the role of improved energy efficiency, enhanced by the energy labelling program, in addressing concerns about electricity costs, leading to increased demand for air conditioners. Blue Star achieved a significant market share gain in the July-September 2024 quarter, targeting a 15% share with a 100-basis-point increase in Q2. Despite intensified competition expected in Q3 and Q4, the company aims for an additional 50-basis-point growth, moving its share to around 14-14.25%. 

Blue Star anticipates a recovery in its commercial refrigeration segment in H2 FY25, projecting over 20% growth in the commercial air conditioning market for large spaces like shops and showrooms, supported by a strong order backlog. With a market capitalization of ₹37,707 crore ($4.5 million approximately), Blue Star's shares have risen by 87% over the past year. 

As a leading Indian HVAC-R company, Blue Star, established in 1943, is known for its innovative, reliable, and energy-efficient products for residential, commercial, and industrial applications. It has built a reputation for strong after-sales services and is a significant player in the global HVAC-R industry, focusing on sustainability and cutting-edge technology. 

Source: CNBC