On the back of high metal prices and volatility in the rupee, Blue Star may hike the prices of its air conditioners by another 4-5% this April, the company’s managing director B Thiagarajan said on Thursday.
Before this, the company had increased its AC prices by 3-4% in February to tackle rising input costs.
“Whenever there is volatility in financial markets, the commodities strengthen. So, prices of some of the metals like steel and copper are going up right now,” he said.
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“You also have exchange rates issues and Indian rupee is weakening. These will have to passed on to the customers,” he added.
Thiagarajan also said that the industry is likely to face a supply shortage of compressors. However, by 2028, the country is likely to become self-sufficient in its production due to the PLI scheme.
Talking to FE, he said that Blue Star is also investing around Rs 200 crore to increase its production capacity at the Sri City plant.
The company manufactures ACs at three facilities — two in Himachal Pradesh and one in Andhra Pradesh (Sri City). Thiagarajan said that the plants in Himachal Pradesh are operating at their full capacity.
This year, it expects its production capacity to increase to 1.4 million units. By FY27, this is expected to touch 1.8 million. Out of this, 6.5 million units will be produced at the Himachal Pradesh facilities and the rest in Sri City.
During the upcoming summer season, the company expects its AC sales to grow 25-30%, despite last year’s high base, when the market expanded nearly 60%.
In FY26, Blue Star expects its market share to improve from 13.9% to 14.3%. It would also invest around Rs 35 crore towards research & development.
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On Thursday, the company launched 150 new models of room ACs, including its flagship premium range for the upcoming season. It has also reduced the price gap between its regular ACs and the smart ACs to around Rs 1,000.
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