The company is launching its products in Sri Lanka this week, through a proper distribution channel. While the company had exports to the country based on the random orders received, there was no proper presence set up in Sri Lanka. Six local companies which has high reputation in the country, has been appointed as distributors in the middle of the year and the company has assessed the potential in the market in the last six to seven months, said C P Mukundan Menon, executive vice president - unitary cooling products, Blue Star. It has also trained around 300 people to work for the company's products in Sri Lanka.
"It is part of our internal strategy to increase our exports by foraying into these countries in a proper way. We will be setting up our foot print in various countries the details of it would be ready in the next three to six months," he said. While the Sri Lankan market is currently at $50 million and growing at 15$ a year, the future of the market with the pace of developments taking place, has high potential, he said.
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Besides, with the free trade agreement between the two countries, there is a cost advantage for exports to Sri Lanka of around a total of around 15-17$ apart from the advantage of faster shipment from Indian coasts, compared to other countries importing the products to the country. The company has already shipped the supply of home and commercial Air Conditioner and commercial refrigeration products to the distributors in Sri Lanka.
Similarly, it is also planning to launch its products formally in Maldives, which is comparitively a smaller market of $15 million growing 15$ annually, this week. It has appointed a mega distributor for distribution in Maldives. It has also initiated steps in marketing its products in countries like Nepal and Vietnam, by appointing one dealer each. The These countries are emerging fast and an entry into these countries would give the company an early mover advantage, said company official.
Blue Star currently has distribution arrangements in some of the Gulf countries including UAE, Oman, Qatar and Kuwait, where the brand is familiar with the expatriate Indians. It is planning to foray into Iran and Saudi Arabia also in the next three to six months. The company is also looking at entering into Kenya, Tanzania, Nigeria and Ulgeria apart from a plan to foray into the Egyptian market in North Africa.
The company has seven manufacturing facilities across the country, which can cater to the demands of these new countries at present, he said.
The Rs 2,800 crore Blue Star has posted a Rs 90 crore in exports which is expecting to increase it to Rs 120 crore this year and Rs 170 crore in 2014-15. It is targeting the exports business to be at around Rs 200-250 crore in 2015-16, said Menon.