Headwinds such as rising raw material cost pressures due to the West Asia conflict alongside unseasonal rains in certain parts of the country could make it a “tough summer” for residential air-conditioners industry, Blue Star MD B Thiagarajan said on Tuesday. However, he added that while summer in some parts has got delayed, double-digit growth is anticipated.
“The good news is that summer has set in in the southern States and even in regions such as Maharashtra and Gujarat. But in some other parts of the country there is inclement weather conditions and summer is perhaps delayed. Still, the projections suggest above-normal temperatures at quite a few locations,” Thiagarajan said.
Input costs
“ But, unfortunately, we got other headwinds as well. There is a price increase due to higher input costs. And to top it all, there is a war-related sentiment and the burden that is arising out of war. Therefore, it is not going to be an easy summer. Summer will happen, but it is going to be a tough summer,” he added.
Despite challenges, Thiagarajan expects a double-digit revenue growth of 20 per cent over last year. “Our plan is to sell 1.75 lakh units of ACs this year,” he added.
The company, which took a price hike of 8 per cent earlier this year due to a revised energy efficiency ratings, is expected to initiate a fresh round of price hikes of 5 per cent later this month as demand starts to pick up due to high raw material costs and rupee depreciation.
Blue Star on Tuesday launched a portfolio comprising 125 models of room air conditioners, including a flagship premium range, complying with the new Bureau of Energy Efficiency (BEE) standards that came into effect on January 1, 2026. The expanded line-up has been strategically developed to address the growing demand for energy-efficient, high-performance cooling solutions across diverse applications, the company added.