Calcutta: Blue Star Ltd, the air-conditioning and refrigeration company, plans to de-risk its business through a combination of product diversification, higher localisation and expansion in key export markets.

"Indigenisation, investment in research and development, foray into new categories, deepening overseas footprint are part of the broad de-risking strategy," joint managing director B. Thiagarajan said on the sidelines of the launch of water purifiers in the eastern region on Tuesday.

The company had forayed into the residential water purifier market in October 2016 as part of its diversification plan. The market size is estimated at Rs 4,200 crore, growing at the rate of 15-20 per cent.

"The company plans to consolidate its presence in the segment with an enhanced range of products and deeper distribution reach in 2018-19 and is targeting to reach a market share of around 10 per cent in about three years," Thiagarajan said adding the firm is looking at commercial options in the segment.

The company has plans to undertake an "aggressive marketing strategy" that involves increasing its distribution channel from 2,000 retail points to 3,500 in the current year. The firm also plans to invest Rs 35 crore in advertising and sales promotion but will depend on contract manufacturers for the segment till it is able to scale up business.

The focus on indigenisation comes at a time there are increasing protectionist steps taken by key markets worldwide leading to a need to consider lowering overseas dependence.

Explaining about the indigenisation, Thiagarajan said, "We have decreased import dependence for air conditioners to 30 per cent from 40 per cent."

Blue Star is also deepening its roots in the overseas markets of West Asia, Saarc and North African countries, he said. "We will enhance the overseas business from Rs 500 crore to Rs 1,000 crore in the three years," he added.