Consumer durables maker Blue Star today said it will increase its investment in research and new product development, as it eyes a 25 per cent growth in the room air-conditioner segment during the current fiscal.
"The company plans to enhance investments on new product development, and research and design initiatives in order to continue to develop modern and sophisticated products competing with the best in the world," Blue Star said in a statement.
The consumer durables firm, however, did not elaborate on the quantum or timeframe of the investment.
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"The room air-conditioners market in India has grown by about 20 per cent in terms of value during this fiscal so far, while we have outperformed the market growing 30 per cent, thereby increasing the market share," Blue Star Executive Director and President (AC&R Products Business) B Thiagarajan said.
He further said that the company is expecting a robust growth in the current fiscal, helped by an aggressive marketing strategy and its wide product range.
"While the market for room air-conditioners is expected to grow by around 15 per cent in 2015-16, considering our track record of outperforming the market, we hope to achieve growth of 25 per cent and achieve a 10 per cent market share," Thiagarajan said.
The residential segment contributes 70 per cent of its overall room air conditioner sales and the company will continue its focus on this segment in its new product line-up for 2015. It is targetting a double-digit market share in 2015-16, up from 8.5 per cent currently.
The company today announced a new range of eco-friendly room air-conditioners for the residential segment.
In terms of advertising and brand communication, the company has firmed up plans to invest about Rs 35 crore this summer season.
