Air-conditioner manufacturer Blue Star will start commercial production from its plant at Sri City, Andhra Pradesh, by the end of 2021. The new plant will have an installed capacity of 500,000 units per annum.
The company currently has five plants and the sixth one coming up at Andhra Pradesh will see an investment of Rs 2.3 billion spreading over 25 acres of land.
"We have bought a piece of land at Sri City, Andhra Pradesh. About Rs 2.3 billion will be invested at the proposed plant.
In the first phase, Rs 180 million will be spent and the balance in the second phase. By December, 2021, we will start production from the plant and the 2022 season demand will be met from this plant", said CP Mukundan Menon, President (Sales and Marketing-Product Business), who was in the city to launch new 100 air conditioner models of the company.
The company will soon take a call on the future of its proposed manufacturing unit in Jammu and Kashmir.
The company may drop its J&K plan if the proposed concessions for setting up manufacturing units in hill states are not extended to it.
The company is planning to double the number of exclusive brand outlets by next two-three years.
"We will take number of exclusive brand outlets to 1000 from 500 at present by 2021 summer", he added.
The room air conditioner market in India, claims the company, grew by 10 per cent in the period between January and December 2017 and Blue Star registered a growth of around 15 per cent .
There are strong indications of a severe summer and the market is expected to further grow driven by a rise in demand. We have consistently outperformed the market growth rate and since 2011, the company has gained significant market share, he added.
Blue star targets a market share of 12.5 per cent in FY19.
In terms of advertising and brand communication, the company has plans to invest about Rs 550 million in the forthcoming summer season as against Rs 450 million in FY18.