Blue Star Cuts AC Production Amid Unseasonal Rains, Eyes Recovery in Second Half

(Blue Star Ltd.) has cut air conditioner production by 20% in May and over 25% in June due to weaker-than-expected summer demand, as unseasonal rainfall and an early monsoon disrupted the market. Managing Director B Thiagarajan said the company had expected a 25% growth but now estimates a near 25% drop in sales so far. Despite the short-term hit, Blue Star expects a 10–15% growth for the full financial year, driven by stronger commercial refrigeration sales and a likely rebound in the second half. The MD also noted a potential surge in orders ahead of the new energy-efficiency label regulations, set to take effect on December 31, 2025. On inventory, Thiagarajan said build-up is under control and production cuts are unlikely to continue into July. He added that the company’s supply chain resilience—built through local sourcing and alternate vendors—has helped it weather cost volatility. Regarding the government’s proposed minimum temperature setting for ACs, Thiagarajan said the change would be “a minor modification in the controllers,” with negligible impact. While the current season has been challenging, Blue Star remains confident about its long-term outlook.