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Bluestar aims up to 30% growth in AC sales, high numbers from rural market

Bluestar, which recently unveiled a lineup of 150 models, expects a major growth to come from smaller towns and rural regions

New Delhi: Homegrown cooling products maker Bluestar expects 25-30 per cent growth in its room air-conditioners, helped by tailwinds such as an early arrival of summer, growing income, and some predictions suggesting a harsh season, its Managing Director B Thiagarajan said on Thursday.

This growth would be over the high base created last season, when the room AC industry witnessed a surge of 30-40 per cent in volume in May and June due to the unrelenting heatwave in most parts of the country.

“We have planned for around 25-30 per cent growth. We will be able to meet that,” said Thiagarajan, adding that he expects to sell around 1.75 million units of room ACs in FY26.

Bluestar, which on Thursday unveiled a lineup of 150 models, expects a major growth to come from smaller towns and rural regions.

“It is actually the middle class aspirational consumers who are beginning to buy,” he said, adding, “Now it is also evident from the fact that this year, for example, Bluestar’s 40 per cent sale will be through consumer finance”.

According to Thiagarajan, Bluestar’s more than 65 per cent sales come from smaller tier-III, IV & V places.

However, he added that the demand from Indian cities is also expected to grow as people are purchasing their second or third ACs.

“The growth is all around and this is the only category which is growing. There are many other categories which are stagnant or not growing. The reason for that is people are getting used to the air-conditioning environment in a restaurant, metro railway, car, airport, and the office, and the urban heat effect is also very high,” he said.

Bluestar is also investing substantially in production to meet the growing demand of room ACs in the domestic market.

“Last year, the capacity was around 1.5 million, and it will go up to 1.7 million. Still, we do buy some two lakh units from outside. So, the intention is next year, to take the capacity to 1.75 million,” he said.

The Indian room AC market should have crossed 15 million units in FY25 and is projected to grow between 25 and 30 per cent in the next fiscal year.

“Now people’s priority is to get an air conditioner. In a typical Indian home, people buy for either their parents’ comfort or children’s comfort. And so the next 10 years, such growth should continue,” he said.

The company currently has around 14 per cent of the room AC market, which has become very competitive with rising disposable income and soaring temperatures during summers.

Bluestar competes with Voltas, LG Electronics, Hitachi, Godrej Appliances, Panasonic, and Haier, among others, in the Indian market.

Thiagarajan also expects the domestic value addition in the manufacturing of room ACs to increase year-on-year with the help of the production-linked incentive scheme to create a complete component ecosystem for ACs.

The post Bluestar aims up to 30% growth in AC sales, high numbers from rural market appeared first on India Retailing.



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