It can be investing round Rs 130 crore on a brand new manufacturing facility for deep freezers and water coolers at Wada, Maharashtra which is prone to be commissioned in direction of the tip of 2021.
“The sudden turn of events consequent to the emergence of the second wave of COVID has crippled the economy and our businesses in Q1FY22, and we have had to cope with another bad summer season,” Haribhakti wrote in his handle to shareholders within the firm’s annual report for 2020-21.
He, nevertheless, mentioned, “With a renewed national focus on strengthening the healthcare infrastructure and an accelerating vaccination drive, I am hopeful that things will begin to improve from Q2FY22.”
Haribhakti mentioned with the momentum gained in Q4FY21, the corporate was “looking forward to a great summer season. Moreover, the Union Budget announced on February 1, 2021, was expected to place India on a very high growth trajectory” earlier than the onset of COVID-19 second wave.
Commenting on the street forward, Blue Star Vice Chairman & Managing Director Vir S Advani mentioned,”In the post-pandemic world, it is becoming increasingly clear that we need to focus on mitigating geographical concentration and seasonality risks.”
In this context, he added,”growing our exports is critical. In FY21, we further consolidated our position in the Middle East, North Africa and SAARC regions and continued to invest in building the Blue Star brand in the Middle East.”
In addition, he mentioned “we are ODM (original design manufacturer) partners for a few international brands. The upcoming EXPO 2020 at Dubai and the FIFA tournament in Qatar continue to offer growth opportunities”.
Advani additional mentioned Blue Star may also take part within the PLI schemes introduced for a lot of product classes by the federal government as an element of the ‘Aatmanirbhar Bharat’ programme.
“The company’s newly formed subsidiary, Blue Star Climatech Ltd, will participate in the PLI scheme for some of the components which it will manufacture in its new manufacturing unit being set up in Sri City,” he added.
The firm can be establishing a brand new facility for manufacturing deep freezers and water coolers with an funding of round Rs 130 crore at Wada, Maharashtra.
“This new plant, likely to be commissioned towards the end of 2021, is expected to have the capacity to produce around 2,00,000 deep freezers and 1,00,000 storage water coolers annually,” Advani mentioned.
Stressing on the necessity for digital push within the COVID-19 period, Advani mentioned,”This has become particularly important. With the factory at Kala Amb having become an ‘Intelligent Factory,’ all our factories are now IoT-enabled, allowing for efficiency improvement and cost-saving initiatives.”
While digital investments will proceed at an aggressive tempo throughout the worth chain, he mentioned,”The next frontier for us to master will be customer data mining and analytics. This, along with institutionalising and embedding a digital mindset in our people so that it becomes a part of the DNA of the organisation, are key for securing our future.”
Haribhakti recognized enhancing competitiveness throughout all business strains as a prime precedence “in order to improve our market share in India and in international markets” and the corporate has initiated a number of strategic programmes on this path.
These embody investments R&D, Industry 4.0, capability growth, de-risking of provide chains and digital initiatives, together with buyer analytics and robotic course of automation, amongst others.
“We aim to grow our market share in India by expanding our distribution reach and making the Blue Star brand relevant to emerging new customers in both B2C and B2B segments. We will continue to make significant investments in brand building as well,” he mentioned.