Blue Star Opening Large Format Stores
Blue Star, Air conditioner maker in India, which is targeting Rs 1,000-crore revenues from its residential segment by 2014, plans to open exclusive large format stores to hawk products across all segments, following the success of its exclusive small outlets.
“We have about 25 Blue Star display centres and we plan to open bigger ones. We have shortlisted some locations and will have first such store within the next six months. We hope to start with Mumbai and want to have one in each metro to begin with,” Blue Star President (Air Conditioning and Refrigeration Products) B Thiagarajan said.
Blue Star will also have a factory outlet for room ACs at Thane near here by the festival season this year. On the revenue side, Thiagarajan said the company is eyeing Rs 1,000-crore revenue from the residential segment by the turn of 2014 on the back of growing demand.
“We will continue to grow in this segment. We had a turnover of Rs 535 crore last year and this calendar year our expectation is Rs 605 crore. Our plan is to reach Rs 1,000 crore by 2014 in room air conditioner segment.”
The firm, which claims to enjoy 7 per cent market share, plans to sell 2.65 lakh units of ACs this year compared to 2.35 lakh units last year, Thiagarajan said.
Next year, he said, the commercial business would account for 40 per cent of revenues and the balance 60 per cent would come from the residential sector. At present it is equal from both the sectors.
According to Thiagarajan, the penetration of room ACs is only 3 per cent and hence there is huge untapped potential in the segment.
Blue Star estimates domestic AC Market is growing leaps and bounds
The domestic AC market is worth 31 lakh units annually and it is expected to be 70 lakh units by 2013-14. The company has earmarked an advertising budget of Rs 20 crore this calendar year, with Rs 15 crore being allocated for the summer, Thiagarajan said.
It will spend Rs 25 crore on R&D and also plans to export products to North African countries in the near future, thus extending its overseas market from West Asia, he said.
Blue Star to open stores in additional 60 locations
Thiagarajan further said the firm will expand its presence in 67 locations this year from the seven last year and is aiming to capture a bigger share of the market.
“We entered the room AC market through the retail route last year and have already captured 7 per cent market share. This year it should be 9 per cent.”
He said Blue Star has 25 percent market share in refrigeration and cold storage segment.














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