Air conditioning and commercial refrigeration major Blue Star Ltd is looking at an all India market share of 13.5 per cent in FY20, thanks to the launch of an array of new products.

India is highly under-penetrated in the AC market at 5-6 per cent compared to 90 per cent in Taiwan, 87 per cent in the US. The market size in India is 5.5 million units valued at ₹13,000 crore. Hence there is a huge potential to grow, CP Mukundan Menon, President (Sales & Marketing) said.

Speaking at the sidelines of the launch of 75 new models to celebrate the company’s 75th anniversary here on Wednesday, he said that the room AC market is looking to register a modest growth of four per cent in terms of value in FY19.

This is because erratic weather conditions in summer, tepid festive season response which has led to a weak sales. Around 52 per cent of the company’s room air conditioner sales are from smaller towns since consumers in these markets are aspirational and prefer premium brands, he added.

Investment plans

The company has plans to invest about ₹55 crore in the forthcoming summer season, compared to ₹45 crore for advertisement campaigns to enhance its digital marketing efforts on social media and the internet.

For R&D, the company intends to increase its investment to ₹50 crore in FY20 on new product development which can compete with the best globally.

On the Kerala market, Menon said the company is the No 2 brand in the State and is looking at a 15 per cent share in FY20. Th company plans to increase the exclusive brand stores to 250 across India from the present 200.

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