Accelerated growth in an under-penetrated category

Led by Vir Advani, from the third generation of its founding family, Blue Star has long-term minded owners, effective management, and a quality franchise in an underpenetrated industry. Under his leadership, Blue Star has gained market share consistently over the last decade by introducing new models and expanding its distribution. It also operates a leading portfolio of commercial air-conditioning and refrigeration products which is benefiting from the growing infrastructure development in India. 

In 2024, sales of residential air-conditioners reached 14 million units in India, compared to 200 million in China; the penetration rate of air-conditioners in India remains exceptionally low compared to other countries. Along with rising incomes, as India experiences hotter and more frequent heat waves, we believe sales of air-conditioning units should continue to expand. Being shareholders of Blue Star for many years, we are excited by its growth prospects. We believe that it could grow multi-fold over the coming decade, which should mean improved profitability as it gains operating leverage from scale.