Non-metros contributing 70% of our sales: BlueStar MD

Bengaluru: The aspirational middle class from tier 3,4 and 5 cities are the new consumers for home appliances company, BlueStar, which are contributing 70% of its sales, Managing Director B Thiragarajan told DH in an interview. “We saw almost 70% of the sales in fiscal year 2025, as  there is a penetration level and good amount of disposable income.,” he said.

India has been witnessing a rising demand for consumer goods, including electronics from non-metros as discretionary spending continues to rise. However, 2025 saw a distorted summer with early rain spells and erratic dampening the sales for consumer electronics companies. BlueStar, as the country’s second largest player in air-conditioning, witnessed a degrowth of 25% in financial year 2024-25 (FY25) as compared to the previous year when it saw 57% growth. 

The cooler than usual summer has hit the sales of several companies including talcum, ice cream, soft drink among others. The unusual weather has emerged as a new threat to India’s 1.4 billion-strong market lately. 

Despite this, the firm believes that the rest of the year will make up for the degrowth, particularly the festive season. “If the summer has failed a full year, the growth will be there because subsequent seasons do well,” he added. Additionally, the company is investing in customer experience especially as quick commerce has been picking up pace. 

Rising temperatures drive surge in air conditioner (AC) and cooler purchases and rentals in Bengaluru April 01 2025.

The Mumbai-headquartered firm has been beefing up delivery on quick commerce platforms, given that it’s increasingly becoming a way of life, especially in metros.

For now, Blue Star had to slash production by as much as 25% between April and June, as it saw less buyers. 

While workforce remains an issue for the home appliances firm with respect to demand, conforming to Bureau of Indian Standards (BIS) has created hurdles in the supply chain because of testing. BlueStar also sells commercial ACs, however, the market size continues to be very small. Presently, the commercial segment is one-tenth of the residential market size. 

India experienced extreme weather events on 88% of days in 2024, in one or more parts of the country, as per data by Centre for Science and Environment and Down To Earth. Between 1993 and 2022, India lost about $180 billion to severe heat and rains, the Climate Risk Index 2025 report said. This climate change, essentially the extreme summer, has also been causing shortage in gig workers for quick commerce players like Zepto, Zomato, Swiggy among others.