Blue Star Ltd, the air conditioning and commercial refrigeration major, is aiming to achieve a 5-6 per cent projected growth in room air-conditioners, as the market is expected to touch six million units in India by 2015.
Speaking to reporters here on Friday, Mr B.Thiagarajan, President, Air-conditioning and Refrigeration Products Group, Blue Star Ltd, said that the current penetration in India for room air conditioners is three per cent with a market size of 3.7 million units. However, the global market size for air conditioners is estimated at 80 million units and China produces 70 million units against its demand of 40 million units.
Mr Thiagarajan, who was here in connection with the opening of retail outlets in Kerala, said that the combined AC market comprising commercial and room is in the range of Rs 10,000crore, of which Rs 7,000crore is alone for room air conditioners, which is expected to touch Rs 15,000 crore by 2015. The growing Tier II and III cities, multiple purchases for home and high disposable income are the reasons for growth in room air conditioners, he said.
The company has announced that it will aggressively target the residential segment in Kerala and has tied up with several leading retail outlets in the State. It plans to sell 15,000 units in the State during this fiscal and 22,000 units by 2012-13.
The room air conditioners market in Kerala has been on a fast growth path and grew about 40 per cent in 2010 with total sales of 1.75 lakh units. The company has tied up with 75 retail stores in the State for distribution of the products and another 165 more would be added by January 2012, he said adding that it is also building up a strong installation and service franchise network to support the retailers.
Blue Star has been selling room air conditioners vide its sales and service dealers mainly catering to the corporate and commercial segment. Over the last couple of years, the company has witnessed a significant demand from the residential segment in the State, Mr C.P. Mukundan Menon, Vice-President, Room Air Conditioners Division, said.