Blue Star to review prices in June, may roll back hike if commodity prices come down

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Air-conditioning and commercial refrigeration major Blue Star on Wednesday said the company has taken a price increase of 2-3% in April for its range of products and the next review will be done in June. It may roll back the price increase if the prices of commodities like copper, aluminium and steel register a decrease at the time of review, B Thiagarajan, MD, Blue Star, told FE.

Pointing out that companies, including Blue Star, resorted to price hikes of the products owing to escalation of prices of commodities, he said, it was the duty of the firms to cut down prices when their input costs decrease. “We have to rightly do it, especially when competition is there in the marketplace,” Thiagarajan said.

Blue Star had previously said that it has material in stock till June. The company had hiked prices in April, July and October months of 2021 and the latest being in April.

Thiagarajan was in Chennai to announce the launching of its new world-class deep freezer manufacturing facility at Wada in Maharashtra which will give the company a doubled production capacity and a major leg-up in the commercial air-conditioning space.

The Wada factory, purpose-built to cater to the production of the commercial refrigeration products and solutions, in particular deep freezers and water coolers, is fully equipped with the latest advanced manufacturing systems and has global best practices in its operations.

Blue Star has built the factory at an investment of around Rs 130 crore, on a built-up area of around 19,300 sq m, and can produce around 2,00,000 deep freezers and 1,00,000 storage water coolers per annum.

Thiagarajan said: “The commercial refrigeration segment is going to explode on the back of rising consumption of perishables in general, and food and medicines, in particular. This is further expected to increase the demand for refrigeration products and we are very well poised to tap these, on the backdrop of our rich pedigree, deep domain knowledge, and best-in-class ranges of products and solutions, suitable for customers across the entire cold value chain.”

Blue Star has been offering a wide spectrum of commercial refrigeration products and cold chain equipment catering to various segments such as pharmaceutical and healthcare, agriculture, dairy, ice-cream, processed foods, seafood and meat processing, horticulture, banana ripening, hotels, restaurants, fast-food chains, quick service restaurants, retail outlets, and several institutional clients.

The company’s range of commercial refrigeration products is extensive and includes deep freezers, bottle coolers, storage water coolers, bottled water dispensers, modular cold rooms, commercial kitchen refrigeration equipment, medical refrigeration equipment such as medical freezers, ultra-low temperature freezers, pharma refrigerators, blood bank refrigerators, ice lined refrigerators, vaccine transporters, mortuary chambers, and supermarket refrigeration equipment, covering all that is required in a typical supermarket.

The products are sold through a specialised channel network, trained to understand customer needs, and capable of installation and after-sales service. Currently, Blue Star has around 1,500 trained channel partners for commercial refrigeration, spanning across cities in India, with 50% of them present in tier 3, 4, 5, and 6 markets.