Title: Blue Star Targets 20% Growth in Commercial Refrigeration Solutions Amid Rising Demand for Frozen Foods and Dairy

Blue Star Ltd, a leading Indian cooling products manufacturer, has set an ambitious target of achieving 20% growth in its Commercial Refrigeration Solutions business, driven primarily by the increasing consumption of frozen foods and dairy products across India. This growth outlook reflects the company's strategic focus on tapping various market segments and strengthening its manufacturing capabilities to meet rising demand.

Blue Star’s Growth Ambition in Commercial Refrigeration

Blue Star’s Managing Director, B Thiagarajan, recently announced the company's plan to grow its Commercial Refrigeration segment at a compound annual growth rate (CAGR) of at least 20%. The surge in demand for frozen foods like ice cream and dairy products, coupled with the modernization of retail outlets including small kirana stores, underpins this optimistic forecast.

"Our internal plan is to grow at a CAGR of at least 20 per cent with the existing categories, including the visi coolers designed for retail stores," Thiagarajan said[1][2].

Factors Driving Market Expansion

Several key trends contribute to Blue Star’s growth potential:

• Rising Consumption of Frozen and Dairy Products: Increasing consumer preference for frozen desserts, such as ice creams, is notable even in smaller towns (Tier III, IV, and V cities).
• Retail Modernization: Many kirana stores are upgrading infrastructure to include chest freezers and visi coolers, enabling sales of frozen and refrigerated goods.
• Diverse Sectoral Demand: Opportunities extend beyond retail to sectors like horticulture, floriculture, poultry, processed foods, quick service restaurants (QSR), pharmaceuticals, and healthcare.

Product Portfolio and Market Position

Blue Star commands a leading position in India’s commercial refrigeration market, holding approximately 30% market share in a sector sized around Rs 4,500 crore[1]. Its commercial refrigeration portfolio is comprehensive, encompassing:

• Deep freezers
• Storage water coolers
• Bottled water dispensers
• Visi coolers/freezers
• Cold rooms
• Healthcare refrigeration solutions (pharmacy refrigerators, ultra-low temperature freezers, ice-lined refrigerators, vaccine transporters)

These products cater to a wide array of industries, providing complete and customized refrigeration solutions.

Visi Coolers: A Highlight of Growth

Visi coolers — glass-fronted units designed for the attractive display and uniform cooling of beverages and perishables — are gaining momentum with retailers.

• Equipped with LED lighting and tropicalisation for harsh ambient temperatures.
• Features such as backlit canopies enhance brand visibility at retail outlets.
• Growing demand from small retail stores seeking to expand frozen and chilled product offerings[1].

Manufacturing Capabilities and Expansion Plans

To support its growth target, Blue Star has made significant investments in manufacturing facilities:

• Wada Plant, Maharashtra: Rs 250 crore investment; annual production capacity of 3 lakh deep freezers and 1 lakh water coolers.
• Ahmedabad Plant, Gujarat: Dedicated capacity for 1 lakh deep freezers yearly.

Additionally, Blue Star is investing Rs 53 crore to expand its commercial freezers unit near Mumbai, among a total planned Rs 400 crore capex focusing on room air conditioners, commercial refrigeration, and commercial air conditioning segments in FY 2026[3].

Market Outlook and Future Potential

The Managing Director expressed confidence that the Commercial Refrigeration segment has the potential to grow threefold over the next five years. This growth is fueled by:

• Increasing per capita consumption of frozen foods, which currently remains low compared to other countries like Sri Lanka.
• Expanding sectors including pharmaceuticals and healthcare that require specialized refrigeration for vaccines and medical supplies.
• Greater penetration in underserved eastern markets where the company’s market share is gradually increasing.

Blue Star’s commercial refrigeration business is part of its larger unitary products segment, which generated revenues around Rs 9,000 crore in FY 2024[1][3].

Blue Star’s Market Share Expansion

The company aims to increase its market share in commercial refrigeration from 30% to 33% in FY 2026, leveraging innovation, quick delivery, and sector-specific product launches[3].

Blue Star in the Context of Indian Refrigeration Industry Trends

India’s commercial refrigeration market is poised for robust growth due to demographic shifts, urbanization, and evolving retail practices. Some notable trends include:

• Frozen Food and Dairy Consumption Growth: Driven by lifestyle changes, rising disposable incomes, and shifting consumer preferences.
• Retail Modernisation: Traditional kirana stores upgrading to modern formats with refrigeration amenities, expanding Cold Chain infrastructure.
• Healthcare Cold Chain Demand: Increasing need for reliable vaccine and pharmaceutical refrigeration solutions post-pandemic.

Blue Star is positioned well to capitalize on these trends with its diversified product offerings and expanding manufacturing base.

Conclusion

Blue Star’s strategic focus on commercial refrigeration aligns with evolving consumption patterns and retail modernization in India. The company’s 20% growth target for this segment is backed by strong market fundamentals, growing demand for frozen and dairy products, and substantial manufacturing capacity expansions. With a diversified portfolio catering to retail, healthcare, and industrial sectors, Blue Star is set to strengthen its leadership and market share in the commercial refrigeration industry in the coming years.

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