Saralnama
Blue Star anticipates room air conditioner sales to exceed its earlier forecast for the current financial year due to planned government tax reductions. Prime Minister Narendra Modi announced a major tax overhaul aiming to cut consumption taxes on everyday goods and appliances from October, including air conditioners, which currently attract a 28% tax rate. Blue Star's Managing Director B. Thiagarajan said the tax cut could reduce rates to around 18%, boosting demand in a price-sensitive market that has faced challenges from a cooler summer. Previously, Blue Star had forecast 10-15% growth in room AC sales volumes but now expects up to 20% growth. The company’s unitary products business, including room ACs and commercial refrigeration, accounted for nearly half of its 119.77 billion rupees revenue last year, with a market share close to 14%. However, the sector may face short-term sales slowdowns as consumers delay purchases until the tax cuts take effect, potentially impacting sales ahead of the Deepavali festival in October. The AC market includes competitors like Tata Group’s Voltas and Japan’s Daikin. The tax reduction is seen as an extraordinary step to stimulate demand amid a year of weak summer sales. (Updated 25 Aug 2025, 09:06 IST; source: link)