Blue Star aims to triple inverter AC share

Requests the govt. to do away with Cenvat duty for 5-star rated ACs.

January 20, 2015 12:02 am | Updated 12:02 am IST - CHENNAI:

Blue Star seeks to triple the share of inverter ACs in its room airconditioner (AC) sales by 2015 as the company underpinning its hopes on increasing preference for energy efficiency products among the buyers and falling prices of inverter ACs.

Though the share of inverter ACs, which varies speed depending on the ambient load, in overall AC sales in the country is still lower at about eight per cent, it has gained strong traction and the share is expected to grow to about 25-30 per cent in the next 2-3 years. It is claimed that inverter ACs save upto 30 per cent power over 5-star rated split ACs.

“With growing volumes, the prices of inverter ACs have also fallen and it will drop further in the coming years,” said B. Thiagarajan, Executive Director and President – AC and R Products Division. Presently, a 1.5-tonne inverter AC is priced at about Rs.48,000, down from Rs.54,000 two years ago. A 5-star rated AC is priced at about Rs.42,000.

Meanwhile, the company has also requested the government to do away with Cenvat duty for 5-star rated ACs to enable buyers prefer energy-efficient products and thereby saving on power consumption.

Mr. Thiagarajan also said room AC business became a strong focus area for the company and it would be a primary growth driver of its revenues in the coming years. “We have been encouraged by the growth in market share in this business despite the strong presence of global brands. So we have decided to invest in R & D, manufacturing and marketing to boost room AC business,” he added.

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