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Blue Star expects Sri City manufacturing plant to go on stream in Q3

Blue Star Ltd, a leading manufacturer of air-conditioners, air purifiers and water coolers, expects to commission its largest facility at Sri City in neighbouring Andhra Pradesh later this year. The new unit is expected to go on stream during the third quarter of the FY23.

The company is spending Rs 250 crore on the project in the first phase. Overall investments in the new unit will be Rs 550 crore. The Plant at Sri City is being built on an area of around 20 acres. The plant will primarily manufacture room airconditioners, deep freezers and water coolers.

Apart from planning to avail State GST benefits for intrastate sales, the Sri City Plant would lead to considerable savings in logistics costs since a significant proportion of airconditioner sales of the Company is from the South. It would also de-risk the products business due to the spread of its manufacturing footprint in two different states. The significant enhancement in Blue Star’s manufacturing capacity will help cater to the burgeoning demand in the domestic as well as export markets.

The new factory is planned to be world-class manufacturing hub with superior aesthetics and ergonomics, deploying state-of-the-art technology. This modern and contemporary plant will ensure that the products manufactured are not only globally competitive but also set new benchmarks in manufacturing technology in the country. The Company aims to transform into a digital enterprise by progressively building on smart manufacturing with Wi-Fi enabled products, inverter technology, vertical integration and environment-friendly products. Further, it intends to develop the plant as environmentally responsible and ecologically sustainable.

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