Blue Star, a leading air conditioning and commercial refrigeration company, anticipates strong growth in sales volumes, aiming to close the current fiscal year with 1.5 million units sold, up from 1 million units in FY24. To support this growth, the company plans a ₹200 crore capital expenditure in FY26, focusing on expanding production capacity at its Sri City factory while investing in R&D, digitalisation, and marketing efforts.
Despite facing challenges, Blue Star reported a 35% growth in Q2 and Q3. “As we head into Q4, the market remains strong, making this an exceptional year for the air conditioning industry. With a promising summer ahead, the room AC market is projected to grow by 20-25%,” said B Thiagarajan, Managing Director of Blue Star Ltd., during the launch of the company’s new room AC models.
Although Blue Star’s market share decreased slightly last summer from 13.75% to 13.5% due to supply constraints, the company regained momentum in Q2 and Q3. It aims to reach a market share of 13.8% by the end of the fiscal year and 14.25% in FY26, with the original 15% target now set for FY27.
In terms of capital expenditure, Blue Star invested ₹200 crore last year and has allocated another ₹200 crore this year for capacity expansion, excluding backward integration projects. The Sri City facility, currently operating at full capacity of 650,000 units, will increase production to 825,000 units next year, with plans to reach 1.2 million units by FY27. The Himachal plant, however, has already reached its maximum capacity of 650,000 units.
Thiagarajan also emphasized the company’s focus on R&D, with ₹32 crore allocated this year and an expected ₹51 crore investment next year. Additionally, the Chairman Emeritus has contributed ₹100 crore, which will be fully utilized over the next three years. To boost digitalisation, Blue Star has earmarked ₹20 crore for technology integration.
On the branding front, ViratKohli remains the brand ambassador, and the company’s ad spend will rise from ₹50 crore last year to ₹65 crore this year, with ₹40-45 crore set aside for the summer season. For the upcoming summer, Blue Star is launching a new range of 3-star and 5-star air conditioners designed for high performance in extreme conditions, with models available in capacities from 0.8 TR to 4 TR, starting at ₹28,990.
All newly launched inverter AC models over the past three years are smart-ready, allowing customers to upgrade to smart features by installing a ₹3,000 smart module. For those opting for a Wi-Fi-enabled AC upfront, the additional cost is just ₹990, making it a cost-effective choice.
“This pricing strategy has driven impressive growth. We started with 2,000 units two years ago, surged to 85,000–90,000 units last year, and now, with smart features standard across 40 models, we aim to sell 5 lakh units this year,” said C Haridas, Executive Vice President of Sales & Marketing and Customer Service, CPAG & CRBG at Blue Star.
Blue Star is one of India’s leading air conditioning and refrigeration companies, known for its high-quality products and solutions in the HVAC-R (heating, ventilation, air conditioning, and refrigeration) sector. Established in 1943, Blue Star offers a wide range of air conditioning systems for residential, commercial, and industrial applications, as well as refrigeration solutions for food storage, pharmaceutical, and industrial use.
The company has built a strong reputation for innovation, reliability, and energy-efficient products, making it a preferred brand in the Indian market. Blue Star is also recognized for its after-sales services, with an extensive network of service centers across India. Over the years, the company has expanded its presence internationally, contributing significantly to the global HVAC-R industry while maintaining a focus on sustainability and cutting-edge technology.
