Blue Star rises as its subsidiary commences the construction of manufacturing facility

The plant will be highly automated and shall ensure that the products manufactured are globally competitive.

Blue Star Ltd, an Indian multinational company engaged in the business of air conditioning and commercial refrigeration products, announced this morning that Blue Star Climatech Limited, a wholly-owned subsidiary of the company, has commenced the construction of a new state-of-the-art manufacturing facility at Sri City, in Chittoor District of Andhra Pradesh.

Blue Star intends to make a phased investment of Rs 550 crore in this plant over the next few years. It also intends to acquire IGBC Gold Rated Green Building certification for this plant, which is spread across an area of 20 acres. 

The plant will be highly automated and shall ensure that the products manufactured are globally competitive. Furthermore, owing to closer proximity to the southern ports, it will enable speedy and efficient logistics management and create employment opportunities for around 1500 people. 

The first phase of the construction (spanning 30,000 sq metres) will be completed by July 2022. Owing to this, the facility will become operational by the second quarter of FY23 and will engage in the manufacturing of room ACs with a maximum capacity of 12 lakh units per annum.

Reacting to this development, at 11.27 am, the share price of Blue Star Ltd was trading at Rs 914.60, an increase of more than 2 per cent from its previous closing price of Rs 895.55 on BSE.