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Air-conditioner manufacturer Blue Star Ltd expects 50 per cent increase in capital expenditure for new plants and in existing plants. Speaking to media persons on the sidelines of launch of 40 new models of inverter split ACs in Chennai today, B Thiagarajan, Joint Managing Director, said the company had announced an investment of ₹210 crore for setting up new units in Jammu and Sri City, Andhra Pradesh, earlier. The capital is likely to increase to ₹350 crore as the company is also making additional investments in its existing facilities.
The company will begin construction in Sri City post monsoon.
Thiagarajan said they will wait till March 31 for the Jammu government to respond if special benefits given for setting up plant in hilly regions, similar to Cenvat benefits, will be available under the GST regime.
Blue Star has a market share of 11.5 per cent and targets 15 per cent by 2021. The company will focus on States where they do not have significant presence to improve its market share.
The company will invest ₹55 crore in advertising and brand promotion and ₹40 crore in research and development for the fiscal 2019.
Blue Star has 150 exclusive stores and it plans to increase it to 200 by March 2019.
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