Blue Star begins work on Rs 550-crore factory at Sri City in Andhra Pradesh under newly formed subsidiary

By: |
September 30, 2021 6:20 AM

The manufacturing facility will be highly automated and will ensure that the products manufactured are globally competitive. It is also planning to acquire IGBC Gold Rated Green Building certification for the plant.

It will primarily manufacture room ACs with a maximum capacity of 12 lakh units per annum.It will primarily manufacture room ACs with a maximum capacity of 12 lakh units per annum.

Blue Star Climatech, air conditioning and commercial refrigeration major Blue Star’s newly formed wholly-owned subsidiary, on Wednesday laid the foundation for the construction of a world-class manufacturing facility at Sri City in Andhra Pradesh. The company plans to invest Rs 550 crore over the next few years on the plant, which will be built on an area of 20 acres, in a phased manner.

The manufacturing facility will be highly automated and will ensure that the products manufactured are globally competitive. It is also planning to acquire IGBC Gold Rated Green Building certification for the plant. The construction of the first phase of 30,000 sq metre will be completed by July 2022 and the facility will be operational by Q2FY23. It will primarily manufacture room ACs with a maximum capacity of 12 lakh units per annum.

B Thiagarajan, MD, Blue Star, said: “Setting up this plant is a part of our strategic initiative to significantly scale up our manufacturing operations by investing in world-class, Industry 4.0 manufacturing facilities. Aligning ourselves with the ‘Make in India’ initiative and by leveraging on the PLI scheme by the Indian government, we intend to manufacture certain components in-house at this facility.”

Thiagarajan had told FE last year that it would set up separate company to run its upcoming manufacturing plant at Sri City in a bid to avail the tax rate benefits applicable to the manufacturing investments. He had said the Sri City project was meant for catering to the Southern markets and it would help the company in reducing its inventory holding period, logistics and transportation expenses which are substantial.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Tata Punch: Can this tiny Tata punch above its weight?
2IndiaSkills 2021 brings seven new-age trades: Ved Mani Tiwari, COO, National Skill Development Corporation
3Allocate 5G spectrum to private networks only via auction: Telcos