Blue Star Limited, a leading name in the air conditioning and commercial refrigeration industry, is ramping up its manufacturing capabilities for Room Air Conditioners at its Sri City Plant. This expansion is being carried out through its wholly-owned subsidiary, Blue Star Climatech Limited.
Key Highlights of the Expansion:
1. Current Manufacturing Capacity
Blue Star’s Sri City facility currently produces 60,000 units per month, operating at a utilization rate of 69.44%. The company has been witnessing growing demand for its air conditioning solutions, necessitating an increase in production capacity.
2. Planned Capacity Addition
To meet this rising demand, Blue Star plans to enhance its production capabilities by adding 20,000 units per month. This expansion will enable the company to cater to a larger customer base and strengthen its market position.
3. Implementation Timeline
The capacity expansion will be implemented in a phased manner, with full operational capability expected by FY26. This strategic approach ensures a smooth transition while maintaining operational efficiency.
4. Investment Details
The expansion project involves an estimated investment of Rs 200 crores, which will be funded entirely through internal accruals. This demonstrates the company’s strong financial health and commitment to long-term growth.
5. Strategic Importance
With increasing demand for energy-efficient cooling solutions, this expansion aligns with Blue Star’s vision of scaling up production to meet consumer needs. The additional capacity will not only help the company enhance its market share but also improve supply chain efficiency and responsiveness.
