Blue Star aims for three-fold increase in exports

Blue Star Ltd, one of the leading manufacturers of air conditioning systems in India, is reportedly planning to increase its overseas business contribution to its overall revenue in coming years. As a part of this strategy, the company aims to boost exports three-fold by 2018. “With the export contribution at six per cent of the total Rs 3,000 crore revenue in the last fiscal, Blue Star is aiming at Rs 500 crore export revenue by 2018 by focusing on markets, including Africa, West Asia and Saarc nations,” said B Thiagarajan, executive director and president of air conditioning and refrigeration products business, Blue Star Ltd.
 
To increase business process efficiency, the AC maker has roped in KPMG to study redefining its manufacturing footprint. Blue Star has six operational plants across the country. "We are studying what we should do with the Ahmedabad and Thane plants," Thiagarajan said.
 
In addition, Blue Star Ltd is also looking to set up a manufacturing unit in south India with an investment of Rs 150 crore. Setting up a new plant is part of the company's business reorganisation plan to close some of the existing units, locate the new plants close to the market demand in order to rationalise logistics costs, besides tapping export demand.
 
Blue Star is looking at Sri City in Andhra Pradesh, Oragadam in Tamil Nadu, and Tumkur near Bengaluru for the proposed facility.
 
FOR COMPLETE REPORT READ: Blue Star to invest Rs 150 cr for new plant in south