Blue Star Climatech, which set up a manufacturing facility at Sri City in Andhra Pradesh, has announced its commercial production in January, 2023.

The Sri City plant is equipped with the latest automation techniques and tools for its assembly line and material handling. Some of the sustainable initiatives include installing advanced affluent treatment plant, rain water harvesting, and provisioning solar-based power. The company has applied for the IGBC gold-rating for this facility.

The new plant is expected to accelerate growth in the room air conditioners (ACs) segment, focusing on tier-2 3, 4, and 5 markets, apart from tier-1 cities. It will also aid efficient logistics management by ensuring speedy movement and cost-effectiveness given its close proximity to the southern ports.

The company has made an investment of approximately Rs 350 crore out of a total of Rs 550 crore planned for deployment in a phased manner over the subsequent years. The initial output expected is about three lakh units in its first year, which will gradually scale-up production to 1.2 million units. Some of its new products will be sourced from this facility itself.

Blue Star Climatech is a wholly-owned subsidiary of Blue Star, which has launched nearly 75 models across product categories of inverter, fixed speed, and window ACs in India.