Blue Star's subsidiary performs Bhoomi Pujan for new world-class manufacturing facility at Sri City

Air conditioning and commercial refrigeration major, Blue Star Limited's newly formed wholly owned subsidiary, Blue Star Climatech Limited, today announced that the Company is in the process of setting up a new state-of-the-art manufacturing facility at Sri City, in Chittoor District of Andhra Pradesh. This morning, the Company performed Bhoomi Pujan and has laid the foundation stone at the site.

The Company plans to invest Rs 550 crores over the next few years on this Plant spanning an area of 20 acres, in a phased manner. This Plant will be highly automated and will ensure that the products manufactured are globally competitive. The Company is also planning to acquire IGBC Gold Rated Green Building certification for this Plant. The construction of the first phase of 30,000 sq meters will be completed by July 2022. Hence, this facility will be operational by Q2FY23 and will primarily manufacture room ACs with a maximum capacity of 12 lakh units per annum.

Leveraging the PLI scheme by the Indian Government, Blue Star Climatech has filed an application for manufacturing of Heat Exchangers and Sheet Metal components at this facility in Sri City.

The Plant is located closer to Southern ports and this will enable speedy and efficient logistics management for the Company. Besides, the setting up of this Plant will benefit the local communities in and around its vicinity as it is expected to create employment opportunities for around 1500 people.

B Thiagarajan, Managing Director, Blue Star Limited, adds, "Setting up this Plant is a part of our strategic initiative to significantly scale up our manufacturing operations by investing in world-class, Industry 4.0 manufacturing facilities.

"Aligning ourselves to the 'Make in India' initiative and by leveraging on the PLI scheme by the Indian Government, we intend to manufacture certain components in-house at this facility. A firm believer in Aatmanirbhar Bharat, we are well on our trajectory to become one of the largest Indian manufacturers in the AC&R industry."

Shares of Blue Star Ltd was last trading in BSE at Rs. 893 as compared to the previous close of Rs. 899.75. The total number of shares traded during the day was 3331 in over 441 trades.

The stock hit an intraday high of Rs. 905.45 and intraday low of 885.65. The net turnover during the day was Rs. 2992453.

Source : Equity Bulls

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