Blue Star aims to double sales from commercial refrigeration segment in next 3 years

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February 11, 2021 5:15 PM

Blue Star has around 70 per cent market share in the pharmaceutical and healthcare segments with product categories such as modular cold rooms, medical freezers, ultra-low temperature freezers, pharma refrigerators, and blood bank refrigerators.

When asked about the AC business, Thiagarajan said in October-December, it recovered to 117 per cent of last year, registering a growth of 17 per cent.When asked about the AC business, Thiagarajan said in October-December, it recovered to 117 per cent of last year, registering a growth of 17 per cent.

Cooling products maker Blue Star expects to double its sales from the commercial refrigeration segment in the next three years as the company is witnessing an uptick in demand for its products in the segment after the pandemic.

According to Blue Star Managing Director B Thiagarajan, the pandemic has created an opportunity for the segment that has become important because of the government’s spending on vaccination and healthcare infrastructure besides others as agri infrastructure, Aatmanirbhar Bharat and food processing.

Moreover, food delivery is also creating an opportunity for the segment.

We are a big beneficiary of that. We already are a market leader there and hold close to 30 per cent in the commercial refrigeration and it has the potential to double within three years. That is the reason we are launching new products,? Thiagarajan told PTI.

Excluding the transport refrigeration of the commercial segment, in which the company operates, the total market size is estimated to be around Rs 3,000 crore.

The market would become around Rs 5,000 – 6,000 crore in next three years and we would also double it,? he added.

The company on Thursday expanded its product portfolio and introduced Ice Lined Refrigerators and Vaccine Transporters, which are ideal for storing vaccines.

Blue Star has around 70 per cent market share in the pharmaceutical and healthcare segments with product categories such as modular cold rooms, medical freezers, ultra-low temperature freezers, pharma refrigerators, and blood bank refrigerators.

We expect that between September 2020 to September 2021 around Rs 250 crore investment would take place and we have already received Rs 75 crore worth orders and expect to receive another Rs 75 crore in next six months,? he added.

The company, with a capital expenditure of Rs 130 crore, is in the process of setting up a new plant at its existing facility in Wada (Maharashtra) to expand the manufacturing capacity of deep freezers and storage water coolers to cater to the rising demand for commercial refrigeration products as well as leverage on Aatmanirbhar Bharat Abhiyan.

With the new plant, Blue Star will be doubling its production capacity for deep freezers. This new plant will have a capacity to produce around 2,00,000 deep freezers and 1,00,000 storage water coolers per annum. It is in the advanced stages of completion and is likely to be commissioned towards the end of this year,? he said.

When asked about the AC business, Thiagarajan said in October-December, it recovered to 117 per cent of last year, registering a growth of 17 per cent.

In Q4, though the prices have gone up, I have a feeling that we would grow,? he added.

Earlier this month, the government proposed to hike customs duty on imports of compressor of refrigerators and air conditioners to 12.5 per cent from 10 per cent.

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