Air-conditioning and commercial refrigeration major Blue Star yesterday said it is aiming to capture a market share of 12.5% in the room air conditioners market in the fiscal year 2017-18. "The room air conditioners market is around Rs 15,000 crore and by FY17 it should be Rs 20,000 crore. It is growing at a CAGR of 20%. We have a market share of 11.5% and we want to achieve a market share of 12.5% in FY 18," said B Thiagarajan, Joint MD, Blue Star.
He added that the company wants to grow at a faster clip than the industry in the room AC category at 20%. ACs account for nearly a third of the company's revenues and around 52% of its sales are from smaller towns. The company plans to invest about Rs 45 crore in advertising and marketing this summer season and Rs 33 crore in new product development as well as its research and development initiatives in FY 18.
Presently, the company has nearly 85 exclusive product stores in the country and plans to increase it to 100 stores by the end of this month. Blue Star yesterday launched an inverter split AC, which gives cooling in decimals. The inverter AC market is 12% of the 5 million unit AC industry at present and is expected to be 25% of the industry by the fiscal year end.