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Air conditioning and commercial refrigeration major Blue Star is planning to foray into various Saarc (South Asian Association for Regional Cooperation), West Asian countries, including Iran, Saudi Arabia and Egypt with a distribution channel, as part of a strategy to expand exports business. The company is expecting export turnover to go up from Rs 90 crore last year to Rs 200-250 crore by 2015-16, said a company official.
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 random orders received, there was no proper set-up. Six local companies have 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. 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 footprint 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 per cent a year, the future of the market with the pace of developments taking place, has high potential, he said.
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 per cent 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 planning to launch its products formally in Maldives, comparitively a smaller market of $15 million , growing 15 per cent 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 a 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.
