Blue Star planning to introduce ACs fitted with air purifiers

Mumbai-based air conditioning major Blue Star is planning to integrate its air conditioners with air purifiers in collaboration with companies based in China and the US.

Having entered the air purifier category this summer, the 70-year-old company is also seeking technology from IIT Madras to come up with such products, which will be the first of its kind in India.

B Thiagarajan, Executive Director and President, Blue Star, said, “This summer, we have entered the ₹275-crore air-purifier category and are looking at integrating the product with our air conditioners.

“Air conditioners already have micro filters, and purifiers can be added to it. We are working with companies in the US and China to bring this product.”

It has also made an entry into the air cooler segment this summer to cater to middle-class Indians living in dry climates in cities such as Nagpur and Delhi. “We want to participate in the growth story of the Indian middle class with our air coolers, since we are a premium player in air conditioners,” he said.

Having entered the residential air-conditioning segment in 2011, Blue Star continues to import almost 60 per cent of its raw materials, which includes compressors for its air conditioners. The home-grown company expects to cater to the Make in India policy and further bring down prices for air conditioners. “This year, prices are likely to be stable for air conditioners, but we will go ahead and try to bring down prices since we have to make in India.”

With almost 60 per cent if its ₹3,200-crore turnover coming from tier III, IV and V cities, Blue Star expects the smaller markets to contribute to its sales at a time when the recent Budget has given incentive for the agriculture sector based in rural India.

Blue Star, which sells its air conditioners through websites such as like Snapdeal and Amazon and also its own site, expects to generate at least 30 per cent of its sales from e-commerce, going forward.

“Today, e-commerce generates about 5 per cent of our sales, but we have not been discounting our prices on these sites. By 2020, we expect this channel to contribute 30 per cent of sales,” Thiagarajan said.

Enhancing its media spends, Blue Star would be spending ₹40 crore towards advertising, with ₹10 crore assigned towards IPL 9.

“Although media costs have been going up by almost 25 per cent compared with last year, IPL gets the maximum reach in cricket and we would be spending ₹10 crore on this property this summer,” added Thiagarajan.