Blue Star Anticipates a 25% Surge in Residential AC Sales During the Second Quarter

Blue Star, a manufacturer of domestic cooling devices, officially announced on Tuesday that it anticipates a 25 percent increase in residential air conditioning sales in the second quarter—the month with the biggest number of sales because of the heat wave and rising temperatures. The Southern region, where sales of cooling equipment start early, contributed up to a 40% year-over-year increase in AC sales in March.

Blue Star Managing Director B Thiagarajan said, “Our goal is to reach the market share of 15 percent in FY25. So, we are working towards that, we have another 11 months to go.”

Blue Star, which debuted a new line of more than 100 reasonably priced and high-end AC cars, intends to spend more than Rs 40 crore on advertising this summer in an effort to attract new customers. With increasing disposable means, the growing middle class is a major source of demand for Blue Star appliances, which is seeing the category shift from being a luxury to a need. In addition, the company 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.

The previous year’s business report shows that the company acquired 13.50% of the market share. Thiagarajan claims that the Indian home air conditioning market, which is expected to reach 11.5 million units in FY25, is at an “inflection point” and will experience exponential growth in the coming years.

Blue Star reported a total income of Rs 8,008.19 crore for the fiscal year that concluded on March 31, 2023. The company’s unitary products segment saw growth, with residential AC accounting for 38.8% of that amount, or Rs 3,626.93 crore.