Central airconditioning and commercial refrigeration major, Blue Star, is setting up a major manufacturing facility at Wada (Thane District) in Maharashtra. The factory will be located over an area of around 35 acres and will manufacture both airconditioning and refrigeration equipment for the domestic and the international markets. Phase I of the factory will be completed in March 2008, although partial production will begin from December 2007.

Blue Star has been growing at over 25% for several years resulting in substantial demand for the Company's manufactured products. To cope with this growth, the three older plants at Thane, Bharuch and Dadra have been steadily expanded and modernized and a 4th factory built in 2005-06 in Himachal Pradesh. The unabated economic growth and positive business outlook for the Company has now created a need for a 5th manufacturing facility.

According to Satish Jamdar, Executive Director, Blue Star, "A task force comprising senior managers evaluated several locations in the country for our fifth factory. Wada was chosen for its centralized location as well as its proximity to the Mumbai Port. To cope with the huge demand for our manufactured products, we plan to invest about Rs 35 crores in FY 2007-08 on Phase I of this plant. In the meanwhile, we will continue to upgrade our existing facilities".