NEW DELHI: The air-conditioning industry, valued at around Rs 27,500 crore ($3.3 billion), is likely to double in the next four years, Blue Star has said in its annual report.
The Indian HVAC&R (heating, ventilating, air conditioning and refrigerating) is poised for exponential growth, said Blue Star CMD Vir S Advani.
This growth would be driven by factors 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.
“The Indian The overall AC industry (both residential and commercial), currently valued at around Rs 27,500 crore, is likely to double in the next four years,” Advani said in his address to the company’s shareholders in the annual report for 2023-24.
The company is “optimistic” about its future business outlook, given the changing weather pattern, resulting in hotter summers coupled with a new and resilient product portfolio in residential and commercial air-conditioning. 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 to focus on growing faster than the market, margin improvement initiatives through a comprehensive Total Cost Management programme, prudent management on financial capital, leadership development and succession planning,” it said.