THE air-conditioning industry, valued at around Rs 27,500 crore (USD 3.3 billion), is likely to double in the next four years, Blue Star has said in its annual report. TheIndianHVAC&R(heating,ventilating, air conditioning and refrigerating) is poised for exponential growth, said Blue Star Chairman & Managing Director VirSAdvani. Thisgrowthwouldbedrivenbyfactors such as “low penetration” of room ACs and the burgeoning middle-class consumers with “high disposable incomes”, especially from smaller Tier III, IV & V markets. “TheoverallACindustry (bothresidential and commercial), currently valued at around Rs 27,500 crore, is likelytodoubleinthenextfouryears,” Advani said in his address to the company’s shareholders in the annual report for 2023-24. Thecompanyis“optimistic”about its future businessoutlook,giventhe changing weather pattern,resulting in hotter summers coupled with a new and resilient product portfolio in residential and commercial airconditioning.

 

Blue Star has rolled out a 3-year strategic plan to strengthen its core capabilities, acquire new capabilities, build new processes, and adapt innovative technologies, Advani added. It also specifies details of investments to support these growth plans. “In FY25, the company will continue tofocusongrowing fasterthan themarket,marginimprovementinitiatives through a comprehensive TotalCostManagementprogramme, prudent management on financial capital,leadershipdevelopmentand succession planning,” it said.

 

The company expects its strong consumer insights of the domestic market coupled with its expertise, network of channel partners spread over 900 towns and a strong brand equity will place itin“good stead” to leverage the opportunities that the scale will bring in. “This will necessitate substantial investments in sales and distribution, R&D, manufacturing, supply chain and digitalisation,” it said. Blue Star ended FY24 with a revenue growth of 21.4 per cent to Rs 9,685.36 crores. The company, which has completed80years,hasimproveditsmarket share in the room air-conditioner(RAC)duringtheyear,whichisestimated to be at 13.75 per cent compared to 13.50 per cent in FY23