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Blue Star draws expansion plan, defers unit at Sri City

Friday, 15 Mar 2019
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Blue Star is planning an investment of Rs 185 crore in FY20 as the company prepares to take advantage of demand revival. The company will invest the money in manufacturing, research and development and advertising and communication.

The company hopes to increase its share in room air-conditioners market to 13.5 percent during FY20 from 12.8 percent now. Blue Star has introduced 75 new air-conditioner models. It will also increase the number of exclusive brand stores to 250 by the end of FY20 from 200 now.

The company will also boost its advertising and brand spend to Rs 55 crore in the upcoming summer season from Rs 45 crore in FY19.

The company has, however, deferred its greenfield unit plan at Sri City, Andhra Pradesh and will spend the money in FY20 in the existing units due to a slump in demand in recent months. The company will increase R&D investment to Rs 50 crore in FY20 as against Rs 40 crore in FY19.

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