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Blue Star to hit Rs 1200cr revenue from room AC

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Air conditioner maker Blue Star is expected to hit a revenue of Rs 1,200 crore from room AC segment in financial year 2016-17. Currently, the revenue from room AC stands around Rs 1,000 crore.
The total AC market is estimated to be around Rs 15,500 crore, of which the room AC market is Rs 11,500 core. The room AC industry is growing at 10 per cent and is expected to grow by 15 per cent in FY 17.
The company experiences maximum sales from tier III, tier IV and tier V cities. Nearly 40 per cent of the sales generally happens in summer and the company indicated that the prices of their ACs will remain stable.
In the forthcoming summer season, it is expected that the company will invest Rs 40 crore in marketing and Rs 30 crore in new product development along with its research and development initiatives in FY17. By the end of FY17, Blue Star is planning to increase its exclusive product store count from 70 to 100.
By investing Rs 215 crore, the company will also be setting up two more manufacturing units. One unit will be set up in Jammu and the other will be in Sri City near Tada in Andhra Pradesh.

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