Kolkata, 6 January
Air-conditioners and commercial refrigerators maker Blue Star, which is planning a new manufacturing facility in the southern region of the country to cater to the additional demand post-2015, may set up one in Bangalore.
"Bangalore will be an ideal location from logistics point of view as our focus is to reduce the logistics cost," Mr B Thiagarajan, executive director & president ~ AC & R products business, said while addressing a Press conference here today.
The state of Tamil Nadu is also on the company’s radar for the proposed unit. "We are, however, yet to finalise the location. We will zero in on the site by August this year," he said.
South India is the biggest market for the company’s room ACs, accounting for about 40 per cent of its overall business in the segment, he added.
Eventually, this will be the company’s eighth production unit in the country.
The company has seven manufacturing units at present ~ two in Himachal Pradesh, two in Gujarat, two in Mumbai and one in Dadra & Nagar Haveli, said Mr CP Mukundan Menon, executive vice-president of the company.
Asked about the investment for the proposed project, the Blue Star executive director said that it is estimated to be in the order of Rs 150 crore for a plant having a capacity of about half a million units.
Meanwhile, unveiling a new line-up of energy-efficient ACs today, the company said it expects to achieve a 25 per cent growth in room AC segment compared with an estimated 15 per cent growth by the industry this year.
Also, Blue Star is targeting a revenue in excess of Rs 3,000 crore during financial year 2014-15 as against Rs 2,800 crore revenue likely to be registered by the company in the current fiscal.
Dwelling upon the company&’s sales target, Mr Thiagarajan said the company aims at selling three lakh units of room air-conditioners in the next financial year compared with 2.5 lakh units during the current fiscal.