With regards to the Room ACs business, the momentum gained during the festive season in Q3FY24 was bolstered by a stellar performance in Q4FY24. The exceptionally strong demand in the southern region and product diversification especially with a range of affordable Room ACs helped us surpass the milestone of 1 million units. Our market share during the year improved and is estimated to be at 13.75% compared to 13.50% in FY23. The launch of new flagship split air conditioner models like ‘Heavy-Duty ACs’ and ‘Super Energy-Efficient ACs’, contributed to substantial revenue growth. The Commercial Refrigeration business witnessed excellent traction with strong demand witnessed from ice cream OEMs, QSR chains, the HoReCa segment, food retail and healthcare. Increase in outside-the-home consumption remains one of the major drivers of business growth, especially in the perishable food sector. Blue Star became the first Indian company to receive an India Design Mark for its 300-600 litres deep freezers and also obtained BIS Certification for the full range. We maintained market leadership in deep freezers, storage water coolers and modular cold rooms. As one of the largest HVAC&R after-sales service providers in the country, Blue Star is dedicated to delivering a world-class customer experience. Recognising the critical importance of after-sales service, the Company ensures seamless customer interactions with guaranteed response times and top-quality service. Blue Star’s extensive service network operates 24x7, supported by its ‘Gold Standard Service Delivery’ promise. This network extends beyond Tier 1 cities to include Tier 2, 3, 4, 5, and 6 cities, serving over 900 towns. In the Professional Electronics and Industrial Systems business, the market for non-destructive testing solutions has grown due to Make-in-India-related capacity expansion as well as the introduction of higher quality standards and specifications in various industries. The healthcare business is benefitting from the expansion of the country’s semi-rural healthcare infrastructure. However, the data security business continues to face challenges as customers move from on-premises IT infrastructure to cloud- based solutions. The Company continues to make significant investments in R&D. During FY24, the company invested ` 143 crores which includes capital expenditure of ` 94 crores on contemporary design and test facilities. A new innovation centre was established at Bhiwandi near Mumbai for design and development of heat pumps and VRF. We now have four state-of-the-art R&D centres at Thane, Wada, Dadra, and Bhiwandi. During the year, 6 patents were awarded out of 46 patent applications and 46 design registrations across the Company. Blue Star continued to invest in its manufacturing capabilities to facilitate future growth. The Company has seven state-of-the-art manufacturing facilities spread across the country. Blue Star’s new plant at Wada and Blue Star Climatech Limited’s Sri City Plant were the two facilities commissioned in FY23. The new plants quickly ramped up to cater to the growth requirements in FY24. The Sri City Plant manufactured over 300,000 ACs in FY24 and is on track to double this production in the current fiscal year. Moreover, it received the prestigious IGBC Gold certificate during the same period. Continuously enhancing operational efficiency is at the core of Blue Star’s ‘Manufacturing Excellence Programme’, which focuses on lean manufacturing, technological advancements, quality enhancements and fostering a supportive work culture. The Company’s commitment to excellence extends to supplier relationships, streamlined logistics, adoption of Industry 4.0 practices, and developing modern skill sets in its workforce. Blue Star maintains a robust supply chain management system, emphasising customer satisfaction and profitability. The Company employs Total Cost Management (TCM) techniques to reduce costs while maintaining high quality. Through valuesourcing partnerships, Blue Star develops flagship products with suppliers offering quality materials at competitive prices. The Company rigorously tracks supply chain costs and utilises industry benchmarking and ‘should cost’ methods to ensure competitiveness and strong supplier relationships. We continue to implement the findings of the ‘Great Place to Work’ survey to maintain our position as the best employer in the industry. Our investments in leadership development and functional training include building a pipeline of young leaders. We are also making noteworthy progress in improving gender diversity and aim to increase female representation in middle and senior management positions. Furthermore, we are intensifying our investments in technical skill development across our network of dealers and business associates. The Company’s brand and its value proposition, ‘Built on Trust,’ continue to resonate strongly with both consumers and B2B customers. Having Virat Kohli as the brand ambassador for our room air conditioners has significantly boosted our presence in Hindi-speaking markets and Tier 3, 4, and 5 towns, particularly amongst young consumers. Our TV commercials, along with digital and outdoor creatives, are tailored and simplified to appeal to a wider audience, including the aspirational middle class. We are committed to harnessing the potential of digital technologies through targeted investments in data analytics, artificial intelligence, and machine learning. We made progress on this front during the year and initiated projects aimed at (a) accelerated revenue growth (b) cycle time reduction in the introduction of new products and services (c) enhanced customer 8 BLUE STAR LIMITED
RkJQdWJsaXNoZXIy NTE5NzY=