Mumbai: Air conditioner maker Blue Star has announced an increase in prices across its product range. The company has raised prices by up to 5 percent on average, with plans to increase them further by around 13 percent in total over time.
The decision was shared after a discussion with the company’s Managing Director, B. Thiagarajan.
Reason Behind The Increase
The main reason for the price hike is the rising cost of raw materials. Prices of metals like copper and aluminium have gone up significantly, increasing production costs for air conditioners.
In addition, new energy efficiency norms have also added to the cost. These regulations require companies to improve product performance, which often leads to higher manufacturing expenses.
Model-Wise Price Changes
Blue Star said that price increases vary depending on the model. Some air conditioners have seen a rise of around 3 percent, while others have gone up by as much as 8 percent.
The company added that it is not passing the full cost burden to customers. A part of the increased cost is still being absorbed by the company itself. However, it has not ruled out further price hikes in the coming months if costs continue to rise.
Strong Demand In Smaller Cities
Despite the price increase, demand for air conditioners is growing quickly, especially in tier-3 and tier-4 cities. More people in smaller towns are now buying ACs, leading to a wider market for companies.
This trend is helping the company expand its business beyond big cities.
Capacity Expansion Plans
To meet rising demand, Blue Star is planning to increase its production capacity. Currently, the company produces about 1.4 million units per year. This is expected to increase to around 1.8 million units.
The company has also launched a new range of air conditioners that follow updated energy norms. These include super-efficient and heavy-duty models designed to offer better performance and energy savings.
Overall, Blue Star is adjusting its strategy by balancing higher costs, rising demand, and new product launches.
