Kolkata : Air-conditioning and refrigeration major Blue Star Ltd said it has charted out a “de-risking” strategy for long-term growth. “Indigenisation, investment in research and development, foray into new categories, deepening overseas footprint are part of the broad de-risking strategy,” Joint MD, B Thiagarajan, said here on the sidelines of the launch of water purifiers in the eastern region.
Developments like Brexit and the recent trade stances by the US are signals of “dismantling of globalisation”, and every country has started taking some kind of protectionist steps, which necessitates stepping up R&D and indigenisation to lower overseas dependence, he said.
Foray into the residential RO-based water purifier market is also a part of the company’s de-risking strategy from its very high revenue dependence on refrigeration and air conditioning.
The market size of such RO-based water purifiers is about Rs 4,200 crore, reports PTI.
Blue Star is aiming to grab 10 per cent market share in this category, which would translate into a revenue of Rs 500 crore over the next three years, Thiagarajan said. It launched RO purifiers about one-and-a-half-years back but has now undertaken an aggressive marketing strategy that involves penetrating into 120 towns from the existing 50, and expanding the product range to 35 models. Explaining about indigenisation, Thiagarajan said, “We have decreased import dependence for air conditioners to 30 per cent from 40 per cent, and expect similar reduction in the near future.”
Blue Star is also deepening its roots in the overseas markets of Middle East, Saarc and North African countries, he said.