Bluestar sees Rs 2,200 cr turnover in 2007-08

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New Delhi, May 11 (UNI) Country's largest airconditioning (AC) and commercial refrigeration firm Bluestar Ltd has said it expects to register a turnover of Rs 2,200 crore, growing by 35 per cent.

''We expect to touch Rs 2,200 crore this year from Rs 1,600 crore last year,'' company Deputy Managing Director T Gouri Sankara Babu said here.

We expect to get a business of Rs 1,500 crore from central AC, Rs 300 crore from room ACs business and Rs 200 crore from the refrigeration vertical, he added.

Bluestar is also planning to set up additional facilities in Wada, Maharashtra and Uttaranchal.

''The Wada plant will take care of a part of central AC equipment business. This is to reduce the pressure on Thane plant,'' Mr Babu said.

The Wada plant will also house an 'export oriented unit' to cater to the company's West Asia business.

''We are thinking of setting up an assembly unit in West Asia. We have already commissioned a feasibility study, the result of which is awaited,'' Mr Babu said.

The Uttaranchal plant, which will come up in the next one year, will cater to the refrigeration equipment production, he added. He, however, refused to divulge further information.

The company has four facilities in Thane (Maharashtra), Bharuj in Gujarat, Dadra and Kalambar in Himachal Pradesh.

Bluestar had earmarked a capex of Rs 100 crore last fiscal and expects to increase it substantially keeping in mind the various expansion plans.

Asked about the impact of rising commodity prices, he said the company is facing a rise of 5-8 per cent in input cost and has been compelled to increase prices. ''We have been compelled to raise prices by 4-8 per cent and this will be done between May and July,'' Mr Babu said.

The company has a 29 per cent market share in the central AC business, while it has a seven per cent share in room AC segment.

''The room AC segment saw a 50 per cent CAGR in the last two years with 2,00,000 units being sold in 2006-07. We expect the market to sell about 2.2 million units in 2008-09,'' he added.

UNI SR BJR HT1437

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