Blue Star To Focus On Comfort Airconditioning Segment

New Delhi, July 24: | Updated: Jul 25 2002, 05:30am hrs
Blue Star, India’s largest airconditioning company, is shifting its business focus from industrial airconditioning to the fast-growing customised comfort airconditioning.

As part of its plans to expand its reach in airconditioning, the company is now aggressively looking at comfort airconditioing segment, which includes the upcoming sectors like entertainment -multiplexes, healthcare (hospitals), shopping malls/super stores, education (schools) and telecom.

The airconditioning of multiplexes alone is expected to generate an additional revenue of over Rs 250 crore over the next 2-3 years for Blue Star. The company after completing atleast 15 multiplexes across the country has another 25 multiplex projects in hand.

“As per an Arthur Anderson-Ficci study, more than 300 multiplexes are expected to come up in India in next 3-4 years. And we are aggressively working to grab a larger market share of the growing multiplex business in India. The company is looking at a market share of around 35 per cent,” Blue Star president and vice chairman, Suneel M Advani told FE.

“Our focus is clearly on the comfort airconditioning and multiplexes in particular, which are catching on fast, in India. In the last six decades of our presence in the airconditioning industry, it is for the first time that we are seeing signs of airconditioning really taking off. Although the penetration is low, but we are definitely at a take-off stage,” he added.

Apart from multiplexes, Blue Star is also expecting major business from healthcare and telecom sector in India. The plan to move towards high-growth mutilplexes, super mall and other comfort airconditioning segment has also been driven by the fact that business from the software industry has shrinked over the year, Mr Advani said.

Mr Advani said that airconditioning is different from cooling a theatre, since a multiplex apart from multiple theatres has showrooms, food courts and entertainment centers. The cooling requirement in each section is different.

“In the Indian context, the contribution of industrial airconditioning (factories and plants) to the total business has come down substantially from over 60 per cent to the current level of 30 per cent and at the same time contribution of comfort airconditioning has picked up in a big way,” Mr Advani said.

While the comfort airconditioning segment in India is expected to outgrow the industrial segment and is expected top grow by over 30 per cent, the latter is expected to grow at around 10 per cent. Total airconditioning market in India is expected to be around Rs 900 crore and is dominated by Blue Star.