Blue Star, is planning to set up two new facilities in Jammu and Sri City in Andhra Pradesh. Both the new facilities will add around million units of air conditioners to the total production capacity of the company, which is around million. As significant percentage of sales come from the southern region, the unit at Sri City will help the company to bring down transportation cost which accounts for about 7 per cent. The two new plants will entail an investment of Rs. 1500 to 1750 million and is likely to become operational by 2017.
The company is collaborating with academic institutions like the Indian Institute of Technology – Madras, to improve efficiency of appliances and develop solar-powered ACs. The partnership will also look into making indigenous components for production.