Air-conditioner maker, Blue Star, is targeting 20 percent growth in sales this festive season.

In an interview to CNBC-TV18, B Thiagarajan, joint managing director, said that Onam festivities will be subdued in Kerala as it recovers from the worst floods in a century and this will impact sales for many consumer goods companies and one such is the air conditioner segment.

"For the rest of the country, I am seeing the walk-ins are healthy, but the consumer spending story continues. Therefore, the inventory pressure the industry had including Blue Star, close to around 60 days of inventory was excess in the system due to weak summer and hopefully, we should be liquidating that during this period,” said Thiagarajan.

"After a weak summer, June was a good month where we witnessed some growth. It also indicates that it's better than last year. I must caution you that last year was Goods and Services Tax (GST) recovery period, compared with that it should be obviously doing well. We look forward to festival season. Consumer spending continues and the walk-ins are good in showrooms. So one must hope that the festival season is going to be a stronger one before we can focus on the last quarter pre-summer sales,” said Thiagarajan.

According to Thiagarajan, there is no GST related issues in 2018 and Blue Star is somewhat optimistic about the rest of the period.

“Our goal is very ambitious. We compared with the previous year during the festival season, which you can take it as September to December. This particular season, we want to grow by at least 20 percent but I have a feeling it should be possible. If the market is going to grow anywhere between 10 percent and 15 percent, 20 percent growth we can attempt,” he further mentioned.