Blue Star’s Subsidiary To Set Up Manufacturing Unit in Sri City


AC and refrigerator major Blue Star has said that its newly established subsidiary, Blue Star Climatech, is in the process of setting up a new manufacturing facility in Andhra Pradesh.

Set up in Sri City, in Chittoor District of Andhra Pradesh, the company plans to invest Rs 550 crore over the next few years on this plant spanning an area of 20 acres, in a phased manner.

This plant will be highly automated and will ensure that the products manufactured are globally competitive. The company is also planning to acquire IGBC Gold Rated Green Building certification for this plant.

The construction of the first phase of 30,000 sq meters will be completed by July 2022. Hence, this facility will be operational by Q2FY23 and will primarily manufacture room ACs with a maximum capacity of 12 lakh units per annum.

Leveraging the PLI scheme by the Indian government, Blue Star Climatech, which is Blue Star’s wholly owned unit, has filed an application for manufacturing of heat exchangers and sheet metal components at this facility in Sri City.

The plant is located closer to southern ports and this will enable speedy and efficient logistics management and create employment opportunities for around 1500 people.

B Thiagarajan, MD, Blue Star, said, “Setting up this plant is a part of our strategic initiative to significantly scale up our manufacturing operations by investing in world-class, Industry 4.0 manufacturing facilities.”

“Aligning ourselves to the ‘Make in India’ initiative and by leveraging on the PLI scheme by the Indian Government, we intend to manufacture certain components in-house at this facility. A firm believer in Aatmanirbhar Bharat, we are well on our trajectory to become one of the largest Indian manufacturers in the AC&R industry,” he added.