Blue Star MD: Commercial Refrigeration Market to Reach ₹10,000 Crore in Four Years

Blue Star’s Managing Director, B. Thiagarajan, anticipates a doubling of the Indian commercial refrigeration market to ₹10,000 crore within four years, up from the current ₹4,500-5,000 crore range. He emphasized the importance of the integrated cold chain infrastructure development for stimulating commercial refrigeration consumption. With Blue Star holding a steady 35% market share, Thiagarajan expressed optimism about further improvements.

Regarding expectations for the summer of 2024, Thiagarajan likened it to Diwali for the industry, noting that around 40% of annual profits typically come from this season. He expressed confidence in the industry’s preparation for the upcoming season, particularly with dealers stocking up well after a challenging previous summer.

Thiagarajan attributed growth in the residential segment to an aspirational middle class, highlighting that over 92% of buyers are first-time purchasers, with more than 50% utilizing consumer finance. He emphasized the significance of tier 3, 4, and 5 towns, where over 65% of purchases are made.

Blue Star’s investments in air conditioning and refrigeration have been substantial, aligning with the expanding market demand. Thiagarajan highlighted the company’s initiatives in localizing production and its plans for further investments to meet growing capacity requirements.

He emphasized the importance of a favorable monsoon outlook for rural consumption, particularly during festival seasons, and expressed enthusiasm about India’s burgeoning manufacturing sector, viewing it as a pivotal moment for the country’s economy.

Blue Star recently introduced a new range of energy-efficient deep freezers designed to operate in high ambient temperatures, starting at ₹16,000.