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    Blue Star eyes commercial refrigeration products, water purifiers as next growth driver

    Synopsis

    Blue Star’s commercial refrigeration business is currently worth Rs 600 crore, while it is targeting 10% of the Rs 2800 crore electric water purifier market by 2020.

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    Unlike Tata-owned air-conditioner maker Voltas which has plans to enter the refrigerator, washing machine and microwave oven market, Blue Star has no plans for further diversification.
    KOLKATA: India’s second largest home grown air-conditioner maker Blue Star Ltd wants to focus on commercial refrigeration products and water purifiers as the next growth driver with plans to double both the business by 2020, joint managing director B Thiagarajan said.

    Thiagarajan said Blue Star will soon foray into water purifiers in the Rs 9,000-15,000 segment which is over 65% of the total market and expand the commercial refrigeration reach and products.

    “We currently operate in premium RO water purifiers and is also one of the largest brand sold online. We will now operate in the UV segment which is the largest market and also launch commercial water purifiers over the next three months. The market for commercial refrigeration will also boom with demand for processed food and ice cream going up and kiranas modernising themselves,” said Thiagarajan.

    Blue Star’s commercial refrigeration business is currently worth Rs 600 crore, while it is targeting 10% of the Rs 2800 crore electric water purifier market by 2020. The room air-conditioner business is the largest revenue contributor accounting for over one-third of total revenue. The company has also recently forayed into air-purifiers and air-coolers.

    Unlike Tata-owned air-conditioner maker Voltas which has plans to enter the refrigerator, washing machine and microwave oven market, Blue Star has no plans for further diversification. Thiagarajan said the company will first concentrate on consolidating its presence in water purifiers and commercial refrigeration before expanding product portfolio.

    In room air-conditioners, Blue Star wants to grow its market share from 11.5% to 12.5% this year. It has plans to invest about Rs 55 crore this summer on advertising and marketing as compared to Rs 45 crore it had spent last year. It has 150 brand stores which too will go up to 200 stores next fiscal.


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