On Tuesday, Blue Star announced that it anticipates a 25% increase in residential air conditioning sales in the June quarter, which is when the majority of sales occur because of the heat wave and rising temperatures.
In March, Blue Star managing director B Thiagarajan stated that the company had already seen a 40% year-over-year increase in AC sales from the Southern region, where sales of cooling products begin early.
Our objective for FY25 is to attain a 15% market share. Thus, with 11 months remaining, we are working toward that, Thiagarajan stated.
Blue Star, which debuted a new line of more than 100 reasonably priced and high-end AC models on Tuesday, intends to spend more than Rs 40 crore on advertising this summer in an effort to attract new customers.
With more disposable income, the growing middle class is a major source of demand for Blue Star, which is seeing the category shift from being a luxury to a necessity.
In addition, Blue Star is seeing a rise in demand from replacement customers as well as first-time purchasers, particularly from smaller markets like Tier II, III, and IV markets.
There are several causes for expansion. The country’s economy is feeling optimistic, general elections are taking place, and the season’s weather forecast is favorable for the cooling sector.
According to the trends from the warmer season of 2023 to March of this year, “the penetration levels had been poor for this particular category so I think this summer growth can easily be 20% and we are targeting to grow by 25%,” the speaker stated.
The company, which began selling residential air conditioners in 2011, stated in its most recent annual report for FY23 that it had a 13.50% market share.
According to Thiagarajan, the Indian residential air conditioning market is expected to reach 11.5 million units in FY25 and is at a “inflection point” where it is expected to grow rapidly in the coming years.
If the summer season goes well, I believe the market will grow by about 15% for the entire year. Our goal is 20% growth. Since financial results have not yet been made public, I believe we are unaware of the exact numbers from the previous fiscal year. Our objective was to produce between one million and 1.1 million units, he stated.
Last season, sales were negatively impacted by unseasonal rains in the June quarter, but they eventually rebounded in the ensuing months.
According to Thiagarajan, dealers are stockpiling units in expectation of a good, scorching summer this year. Thus far, the primary sales numbers in the Northern markets, which account for about half of the sales of residential air conditioners, are good.
The company is investing in its current units in Himachal Pradesh in order to increase its manufacturing capacity and meet the growing domestic demand as well as the export market.
Read Also | Blue Star Related News
