Blue Star, one of the leading central air conditioning companies in the country, is expanding its international presence. The company is eyeing the Middle East to expand its product range and enter into project exports, which comprise developing special purpose products and comfort applications.
The company, with the annual turnover of Rs 1,178 crore, is considering a joint venture in Qatar to undertake projects such as offering specialised solutions for commercial buildings and cold storages, hospitals and hotels among others.
B Thiagarajan, executive vice-president, Blue Star, told Business Standard, "While consolidating the domestic market, the company is looking at expanding its international presence and is evaluating partners to enter the project exports in the Middle East."
The company is of the opinion that the local partner's client base coupled with its project management expertise will enable it to understand the local market better. Until 1999, Blue Star had a presence in the Middle East but had to back out from project exports due to stagnant economy and margin pressures. With the booming economy and a rising demand for air conditioning products, Blue Star is witnessing a positive growth in exports to the Middle East. At present, Blue Star exports products such as water coolers, windows and split air conditioners worth Rs 90 crore to the Middle East. However the company is also expanding its product line in the region by introducing new ranges like central air conditioners, rooftop chillers, air handling units, fan coil units etc.
In India, central air conditioners are the key growth drivers for Blue Star with a market share of 30 per cent. In 2005-06, Blue Star's total revenues were Rs 1178 crore, registering 27 per cent increase over the previous year.