Blue Star Managing Director, B Thiagarajan, reports that steady pricing and accessible consumer financing are driving strong growth in the room air conditioner (RAC) market. During the festive season, RAC sales increased by nearly 30% compared to the previous year, following slower growth in the summer months. Almost half of these sales were funded through consumer loans. For the fiscal year 2024-25, the RAC segment is projected to see over 25% growth.
Thiagarajan attributed the surge in demand to improved energy efficiency, enhanced by the energy labelling program, which has addressed concerns about high electricity costs for consumers using air conditioners for extended hours. He also mentioned that Blue Star had significantly increased its market share in the July-September 2024 quarter, targeting a 15% share with a 100-basis-point gain in Q2.
While competition is expected to intensify in the third and fourth quarters, Thiagarajan expressed satisfaction with modest market share growth, aiming for an increase of 50 basis points, which would move the company’s share from 13.75% to around 14-14.25%.
Looking ahead, Blue Star anticipates a recovery in its commercial refrigeration segment in the second half of FY25. The commercial air conditioning market, particularly for large spaces such as shops and showrooms, is expected to grow by over 20%, supported by a strong order backlog. With a market capitalization of ₹37,707 crore, the company has seen its shares rise by 87% over the past year.
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.
