AIR CONDITIONING The Room Air Conditioners industry witnessed a tepid summer in 2023, especially in the North, where the weather was very pleasant and was frequented by unseasonal rains. Owing to this, the industry was flat in Q1FY24 as compared to the same period in the previous year. However, the industry grew well in the remaining quarters, and on a year-on-year basis eventually grew 20% owing to enhanced demand from first-time buyers and Tier 3, 4 and 5 markets. As a result, the overall market size grew to ` 27,500 crores in FY24, of which the market for central air conditioning, including central plants, packaged and ducted systems, and VRF systems was around ` 4,500 crores, while the market for room air conditioners comprised the balance ` 23,000 crores. Blue Star performed better than the industry, thereby improving its market share to 13.75% in value terms. The Company, having strategically repositioned itself in 2020 as a mass premium brand, has since been augmenting and leveraging its manufacturing, R&D, and innovation capabilities to roll out INDUSTRY STRUCTURES & SEGMENTS new, differentiated, and best-in-class ranges of affordable split ACs. These are targeted at price-sensitive consumers and firsttime buyers, particularly in Tier 2, 3, 4, and 5 markets. Additionally, Blue Star has implemented a Total Cost Management (TCM) programme to maximise efficiency across the entire cost-value chain and achieve cost leadership. During the year, the Central Air Conditioning business witnessed enhanced demand from various sectors, including industrial, healthcare, hospitality, retail, educational institutions, and data centres. The revenue growth of the Company was primarily fuelled by the expansion of its product portfolio and distribution channels. The introduction of VRF Lite has allowed the Company to cater to the premium residential market. Additionally, the traction for the newly launched centrifugal chiller remained robust. Blue Star has consistently maintained a leading position in conventional and inverter ducted air conditioning systems, as well as scroll chillers, and holds a strong second position in VRFs and screw chillers. Blue Star’s Manufacturing Plant of Commercial Refrigeration at Wada 24 BLUE STAR LIMITED
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