AC major Blue Star Ltd was originally planning to set up two greenfield manufacturing plants in Jammu and Andhra Pradesh with an outlay of Rs. 300 crore (Rs 150 crore each).
However now, it seems the air-conditioning products and solutions provider would drop the Jammu project and would go ahead with the one in AP alone.
Dropping a clear hint during his recent interaction with the media, Joint Managing Director of Blue Star Ltd, B Thiagarajan said, “Though we have acquired land in both these locations and have begun work on the Jammu project, the likely changes following the GST regime roll-out in July this year, we believe that Jammu may not work out.”
He added: “Some of the state concessions may be off. So it would make sense to set up one bigger manufacturing pant in Sri City in Andhra Pradesh.”
He further said the AC business has grown by about 35 per cent so far this year as against the industry growth of over 20 per cent.