industry

Blue Star fears coronavirus may affect April production


KochI: Air conditioning major Blue Star fears that a supply disruption due to coronavirus may dent its growth target of 20 – 25% in the coming summer season.

China supplies several components for air conditioners made in India. Shortage of these components could affect AC production in India. “We are well stocked till the first week of April. But unless the supply from China is restored in the next couple of weeks, we could face a challenge in the production front after that,” said C P Mukundan Menon, president of sales and marketing, product business, Blue Star.

He said all the supply disruption has affected the AC industry in the country as the peak sales season is nearing . A major chunk of AC sales happens in the next three months, said Menon, who was here for the launch of its premium-yet-affordable energy-efficient range of residential ACs.

Blue Star has been growing faster than the market rate in the last eight years. “In 2019 we grew at 20% while the industry grew at 15 %. This year too we aim at growing better than the industry.” Menon said over 60% of its sales are now coming from tier 3, 4 and 5 towns.

The Rs 5200 crore company is hoping to raise its market share from the current 12.5% to 15% by FY24. In Kerala, the company which has 14% share, expects around 10% increase in sales this year to 3.5 lakh units.





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