Blue Star braces for a slow summer start

Unseasonal summer rains for a second consecutive year which has delayed peak summer and higher material costs could impact both demand and consumer prices in the near term, but the full season is expected to see about 20% growth for Blue Star Ltd, the company’s managing director B Thiagarajan said on Tuesday.

Prices of air-conditioners are set to increase by a further 13% amid the ongoing West Asia conflict which has caused significant disruptions to supply chains leading to higher costs of key inputs such as copper, as well as currency depreciation, he said at a media briefing on Tuesday in Delhi.

“While some price hikes have already been implemented, the remaining price increase will be passed on as we do expect demand to pick up. However, by factoring in the GST benefits, the prices increase to consumers would be about 3%,” he said. Stating that channel inventory levels are adequate and well-stocked, he added: “It is too early to call out full season demand and there are forecasts of peak season setting in. Our season promotion plans are intact.”


Thiagarajan was speaking at the launch of a range of room air conditioners for the year.

Copper prices, for example, a key component for air-conditioner manufacturing, which were hovering at close to $8,500 per tonne last year, have shot up to $12,000-13,000 per tonne this year.