Amid ongoing tensions in the Middle East, BlueStar Managing Director B Thiagarajan said that the impact of the conflict is expected to be felt even after it ends . He flagged consumer sentiment as a key concern, while assuring that supply disruptions are not an issue at present.
"Even if the Middle East conflict comes to an end, I think it is going to leave a pain," Thiagarajan said, while speaking to NDTV Profit on Monday. "I am worried about market sentiment and the extent price hike can be passed on to the customers."
In an earlier interview, before the Middle East conflict, he highlighted that the prices of air conditioners are expected to rise primarily due to surging commodity costs, a change in energy-efficiency labelling, and elevated exchange rates.
Thiagarajan ​​​​​noted that clarity on market sentiment will only come after the Middle East conflict ends.
Citing Kerala as an example, he highlighted that the state has recorded poor market sentiment, likely due to its link to the Middle East. The state is one of the highest recipients of remittances from the region.
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When Will Consumers Face The impact?
Elaborating on when the consumers will feel the impact amid the ongoing concerns, Thiagarajan said, "Invariably, it will happen. Today, they are not seeing the pressure because the inventory was built at old prices. The price hike is to the tune of around 13%, in which 5% comes out of the energy label change, around 8% due to the input cost material, excluding plastic, and the polystyrene prices."
Reflecting on the financial year 2026, Thiagarajan highlighted key issues faced by AC players, including a bad summer season, GST-related interruption, trade war-linked supply chain issues, and the Middle East crisis.
While assuming a favourable summer season for BluStar in the upcoming fiscal, Thiagarajan estimates a growth of around 25-30%. In order to drive this growth, sentiments play an important role, he said. However, in case the summer season is not as expected, then volume growth may get restricted to around 15%.
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