Blue Star targets small towns for growth with new range of split ACs

A huge demand is expected for room AC as there has been an increase in footfalls in showrooms and sales are good across the country.

Blue Star Ltd., continues to strengthen its focus on price-sensitive and first-time buyers in tier-3, -4 and -5 locations with an aggressively-priced new range of split air conditioners under its ‘mass premium’ brand strategy.  While the leading air conditioning and commercial refrigeration major has, under its room AC business, introduced about 50 new air conditioners across inverter, fixed and window categories targeted at different segments such as fast cooling, heavy-duty, super energy-efficient, smart and future-ready (post-July 2020 regulatory regime), it has also widened the offerings in what the company calls “affordable-yet-best-in-class differentiated’ ACs.

B Thiagarajan, Managing Director of Blue Star said, “Along with cities and specific market segments, the growth is coming from the affordable middle class in tier-3, -4 and -5 locations. Keeping in mind the first-time buyers and aspirational middle class; we have now expanded our range in the affordable category. Overall, we foresee a huge demand for room AC as there has been an increase in footfalls in showrooms and sales are good across the country.”

The new affordable split AC will be available at prices starting from ₹30,990, which is lower than the starting price of ₹31,990 two years ago. Despite a 30 per cent increase in commodity price and other costs in the last two years, the company managed to keep the prices of affordable products low.

CP Mukundan Menon, President  & Chief Operating Officer of Blue Star said, “A combination of design optimisation, value engineering and other measures helped to keep costs lower.”

The company expects 20-25 per cent growth over the 2019 summer as it expects strong pent-up demand. It aims to increase the market share in the room AC market to 14 per cent by the end of FY23 from 13.25 per cent in Q3 FY22.

Thiagarajan said the company is unlikely to increase the prices of ACs given the spike in prices of raw materials such as copper and steel prompted by the Russia-Ukraine conflict. “We have a comfortable supply chain position till May-June and hence prices will not go up till mid-April. We may look at price revision if material prices shoot up further,” he added.

For more info, visit: https://www.bluestarindia.com