Air conditioner and commercial refrigerator maker Blue Star is aiming a 12.5 percent market share in the room air conditioner segment in 2018-19, as the demand is likely to grow due to indications of a hotter summer.
“There are strong indications of a severe summer and the market is expected to further grow driven by a rise in demand. Our market share is around 11.5 percent. The market is expected to grow 15-20 percent in 2018,” company’s Joint Managing Director B. Thiagarajan said here.
“We hope to outperform the market and achieve a market share of 12.5 percent in 2018-19,” he said.
The company has worked out plans to set up two new manufacturing units in Jammu and Kashmir and Sri City in Andhra Pradesh to produce 2.5 lakh units of room air conditioners at each plant. It also aims at expanding its existing capacity from 6 lakh units per annum, with an estimated investment of around Rs 220 crore.
Following the introduction of Goods and Service Tax, the company may not be able to get the fiscal incentives for the Jammu and Kashmir unit.
Thiagarajan said the air conditioner maker sought clarification from the Jammu and Kashmir government and would most likely wait till March end before taking a call to relocate the entire 2.5 lakh capacity to Sri City.