Blue Star to invest 550 yen in new manufacturing plant in Sri City, Andhra Pradesh
Air conditioning and commercial refrigeration giant Blue Star said on Wednesday the company would invest around 550 crore over the next few years to set up a new manufacturing unit in Sri City, Andhra Pradesh. .
Blue Star Climatech, a newly formed wholly-owned subsidiary, has started construction on the new plant, which will be “highly automated” and will ensure the products manufactured are competitive globally, according to a company statement.
The construction of the first phase of 30,000 m² will be completed by July 2022.
This facility will be operational by the second quarter of fiscal 23 and will mainly manufacture room air conditioners with a capacity of up to 12 lakh units per year, he added.
“The company plans to invest 550 crore over the next few years in this 20-acre plant on a phased basis,” said Blue Star.
The company is also planning to acquire IGBC Gold Rated Green Building certification for this plant.
Take advantage of the PLI scheme
Taking advantage of the Indian government’s Production Incentive Program (PLI), Blue Star Climatech applied to manufacture heat exchangers and sheet metal components at this Sri City plant.
“The factory is located closer to the southern ports, which will allow fast and efficient logistics management for the company,” he said.
In addition, the new factory will benefit local communities as it is expected to create employment opportunities for around 1,500 people.
Commenting on the development, Blue Star Managing Director B Thiagarajan said, “By aligning ourselves with the ‘Make in India’ initiative and leveraging the Indian government’s PLI program, we intend to manufacture some components. internally in this factory. The factory is located closer to the southern ports, which will allow fast and efficient logistics management for the company, he added.
Last week Daikin Industries announced plans to set up its third manufacturing facility in India, Sri City, Andhra Pradesh, where it plans to manufacture air conditioners and its components and invest around 1,000 crore.