Blue Star sees further drop in commercial segment contribution, eyes residential segment for profits

CHENNAI: The air-conditioning and commercial refrigeration firm Blue Star, has anticipated a further fall in commercial segment contribution in 2012 and the company expects to garner profits from the residential category.

The company has attributed the drop in commercial business to the general slowdown in construction activities in the country. Last year, the drop was a marginal above than 20 per cent.

Mr B Thiagarajan, President, Blue Star Ltd, opined that the IT and ITES companies also went decelerated the workforce addition. He maintained, “If one person is recruited, the company concerned will have to air-condition 75 sq. ft. of office space.”

Last year, the commercial segment accounted for 35 per cent contribution while the remaining was contributed from the residential category. This year, the company expects the contribution to drop to 30 per cent.

The commercial refrigeration business of the company is mainly driven by ice cream, frozen food and dairy segments. The company sees potential growth in the home segment and hence it plans to focus on the segment.