New Delhi: Air-conditioner and commercial refrigeration major Blue Star is looking to further consolidate its position in the room air-conditioning segment as it aims to be USD 1 billion plus company in the next five years, said a top company official. The home-grown Bluestar, which on Thursday turned 75 years old, is also bullish on its growth outlook in the overseas market. The company has plans to expand its size in the water purifier market.
Bluestar would expand its network in the overseas markets, where it is operating, and is aiming to have a turnover of Rs 1,000 crore in the next three years.
“We have a goal that from five years from now, we as an 80-year old company should have a turnover of Rs 8,000 crore (USD 1.1 billion). That is our internal goal to be a billion dollar company by FY 2024,” Bluestar Joint Managing Director B Thiagarajan told .
He further said: “The growth would come from all segments B2B and B2C from the domestic and international markets.”
In FY 2017-18, the Mumbai-based company had registered a revenue of Rs 4,433.34 crore.
Bluestar is also in the process of fast indigenisation and backward integration.
“Massive focus in the next 2-3 years would be on the backward integration as the trade barriers would continue to bother us,” Thiagarajan said.
The company would also improve its electro mechanical business and special refrigeration projects in B2B segment as the market seems to be reviving, he said.
Bluestar, which presently gets around Rs 600 crore from the international markets, has plans to increase the global contribution to around Rs 1,000 crore in the next three years.
“We would keep expanding our footprints in terms of distribution reach in terms. Today we do a turnover of Rs 600 crore and we may be doing around Rs 1,000 crore within three years,” Thiagarajan added.
Bluestar has presence around 19 countries, mainly in gulf, Middle East and African markets in B2B and B2C space.
On being asked about the government’s decision to hike the basic customs duty (BCD) on compressors and AC units (fully imported), he said that this would impact the festive season sales.
“This would be passed on to the consumers, prices would go up. Moreover, disposable income is down because the hike in fuel prices… Therefore, I am of the opinion that festival season demand would be impacted,” Thiagarajan said.
Established during World War II on September 27, 1943, by Mohan T Advani as a three-member team repairing and reconditioning air conditioners and refrigerators,
Blue Star is a leading player in the AC and commercial refrigeration industry in India.