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Air-conditioning major Blue Star is considering setting up a manufacturing facility in South India, which accounts for almost 42 per cent of its market.
“We would set up a facility in the next two years as the market in the southern States is expected to grow further. This will be our eighth manufacturing unit,” B. Thiagarajan, President, told mediapersons on the sidelines of the launch of its new range of residential ACs here today.
He said setting up of a facility in the South was becoming imperative as logistics costs to transport the products from the North was adding to price pulls. “Logistics costs to bring the products from the North to the South are about Rs 600 to Rs 700 on every unit," he said.
Blue Star, which is in the third year of its entry into the residential AC market, currently gets 55 per cent of its revenues from this segment and the remaining 45 per cent from the commercial AC segment. With the commercial sector severely hit by the economic slowdown, the company is targetting 80 per cent of its revenues from the residential sector in the next three years.
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