Bluestar's Cool Growth: Riding the Heatwave to Success

Bluestar anticipates a 25-30% growth in its room AC segment due to factors like early summer and increased disposable income. As demand surges, especially from rural regions, they plan to expand production capacity. The company also benefits from consumer finance and is set to increase domestic value addition.

Bluestar, a leading room air-conditioner manufacturer, is forecasting a robust 25-30% growth this fiscal year, fueled by early summer conditions, rising incomes, and forecasts of harsher weather, according to Managing Director B Thiagarajan. This projected growth will build on last year's high base, which saw a 30-40% increase in May and June sales.

With ambitious plans to sell 1.75 million units by FY26, Bluestar is tapping into the demand from smaller towns and rural areas, accounting for over 65% of their sales. The brand has launched 150 new models and aims to meet growing needs driven by a middle-class eager to adopt cooling comforts. Consumer financing is playing a pivotal role, contributing to 40% of their sales this year.

To keep pace with increasing demand, Bluestar is ramping up production capacity from 1.5 million to 1.7 million units and aims for further expansion. As the Indian market becomes fiercely competitive, companies like Voltas, LG, and Panasonic provide stiff competition. Nevertheless, Bluestar leverages government schemes to enhance domestic manufacturing capabilities, expecting sustained growth over the next decade.

(With inputs from agencies.)