No production impact on Blue Star due to coronavirus
Air conditioning major Blue Star Ltd will not face any production disruption till mid April, however, there may be some impact after that on supplies of components from its overseas vendors owing to coronavirus spread in China, said a top company official.
"Till mid-April there will not be any production disruption at our plants due to non-supply of components by our overseas vendors. Even though we source our electronic components from Japan, the vendor in turn sources his components from China," B.Thiagarajan, Managing Director told reporters here on Tuesday.
He said the company had sufficient stock of components imported ahead of the Union Budget to avoid impact of increased duties.
Thiagarajan said the company airlifts some components from China, adding the coronavirus spread has made other air conditioner makers in the world to look at India and Blue Star which does contract manufacturing of commercial air conditioning units for overseas companies is getting more production enquiries.
He was here to launch new residential air conditioner models including voice controlled unit, an unit with air purifier and others.
On the new plant in Sri City Thiagarajan said Rs 120 crore will be invested in the first phase to cater to the room air conditioner market in the South.
"The plant will be commissioned by the end of 2021. We are yet to decide on the structure of the Sri City plant - whether it will be a separate company or be part of the existing one," Thiagarajan added.
He said the company is now focusing on the tier 3,4 and 5 towns as demanded from there is picking up.
Indian cricketer Virat Kohli is the brand ambassador for the Mumbai-based brand -IANS