Blue Star expects sales to reach pre-Covid levels by fourth quarter

CHENNAI: Consumer appliances major Blue Star expects its sales to recover back to 100 per cent of pre-Covid levels in the last quarter of the financial year (Q4FY21). According to the company’s managing director B Thiagarajan, looking at the market the company is also hopeful of registering a marginal growth of 5 per cent to 10 per cent during the last quarter of the financial year.

Blue Star’s sales in the air-conditioners and commercial refrigeration segment has reached around 80 per cent of pre-Covid levels in the July-September quarter compared to the same period a year ago and the company expects it will reach 90 per cent in the current third quarter.

“Summer is peak business season for us and we lost it completely due to the lockdown. Still, the market looks good and recovery is happening slowly,” said Thiagarajan. He further added that sectors like pharmaceuticals, FMCG, and manufacturing are doing well, which has helped in their recovery. 

He also pointed out that the emergent work-from-home culture has boosted sales of air-conditioners. “As people are working from home, the demand for electronic products like television, refrigerators and air-conditioners have gone up,” he said. 

Thiagarajan also made it clear that Covid-19 will have no impact on the company’s expansion and capex plans. Blue Star is expanding its  Wada plant in Maharashtra for setting up a deep freezer factory, while its new plant coming up at Sri City in Andhra Pradesh will also be commissioned by 2022, as per the scheduled time.

“Sri City plant is important for us as it will help us to cater to the market in the Southern India and will help in reduction in costs of  logistics, inventory holding and will can also avail tax benefits,” he said.
On Wednesday, it had announced the launch of a range of Virus Deactivation Technology (VDT) products. Blue Star has claimed that VDT will deactivate viruses with up to 99.9 per cent efficacy.