Bhubaneswar: Leading air-conditioner manufacturer Blue Star is targeting 13.5 per cent market share in Odisha in financial year 2019-20.
Managing director of Blue Star Limited B Thiagarajan, who was here Tuesday to launch new products of Blue Star, said: “We had a market share of 12.8 per cent in Odisha in FY 2018-19; this year we will reach to 13.5 per cent. Penetration in cities such as Bhubaneswar and Cuttack is growing gradually.” The company has market share of 20 per cent in residential ACs in the state.
Blue Star had a turnover of Rs 250 crore in Odisha and is expecting to increase the figure in due course. Thiagarajan said the company sells about 1.1 lakh room ACs in Odisha per year, which is growing at 10 per cent. He added that the market in east India contributes 13 per cent of all-India market in room air-conditioners, of which Odisha holds about 4 per cent.
Marking its 75 years in India, the company announced plans to become a $1-billion industry in the next five years. Thiagarajan said the company was eyeing a turnover of Rs8,000 crore by the time the company turns 80.
The company is also spending heavily on advertising and brand communication. “In terms of advertising and brand communication, the company has plans to invest about Rs 55 crore in the forthcoming summer season as against Rs 45 crore in FY 19, with a set of TV commercial supported by ads in mainline dailies, cinema and hoardings,” the MD said.
Moreover, the company has also shown potential in research and development. According to Thiagarajan the industry intends to increase its investment to Rs 50 crore in FY 20 as against Rs 40 crore in FY 19 on new product development and research and design initiatives.
About the company’s manufacturing plan, Thiagarajan said Blue Star aims to manufacture one million air-conditioner units and commercial refrigeration products by 2022-23 after the company’s proposed manufacturing facility at Sri City in Andhra Pradesh begins operations in FY 2022.
The company now is expanding its existing facilities at Wada, Himachal Pradesh, and other places. He claimed Blue Star will produce one million units by 2023. He added that the new plant at Sri City will be built at an investment of Rs110 crore by FY 2022.
Currently, Blue Star has 200 exclusive brand stores in the country and it plans to add 250 stores by the end of FY20. The company boasts for its after-sale service with having large network. The company has 800 expert service associates across the country and it intends to increase to 1,000 expert service associates FY20.
—pnn
