Blue Star expects its air-conditioner business to grow by 30 per cent, in the event of a favourable Union Budget, B Thiagarajan, executive director and president, AC products business told NDTV.
"I expect the Union Budget if it is favourable for growth and I'm very confident it will be, to the interest rate certain interventions will definitely take place which means the economy srarts growing at the ground level in a much much bigger way, employment rates should go up and this demand should further grow as far as room air-conditioners are concerned. Something like 30 per cent growth we can expect if all this happens," he said. (Watch Video)
Analysts expect the Reserve Bank of India or RBI to cut interest rates in 2015.
The company's residential segment is growing faster than the industry, Mr Thiagarajan said.
"Blue Star specifically has been growing much higher than the market in the sense that if the market has been growing at 19 per cent we have been growing close to 30 per cent or so," he said.
There is a lot of opportunity for growth as penetration in India continues to be low, Blue Star said.
"We are close to only 3 per cent household penetration even now and the market size 3.7 million compared to what is China's 55 million or global market size is 105 million."
On Wednesday, the Blue Star stock ended 4.62 per cent up at Rs 33.85 on the NSE outperforming the broader Nifty and the Sensex.
RECOMMENDED FOR YOU
POPULAR