blue star ltd
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Presented by :-
Amit (35)Sonia Dhiman (39)Narender kirmara (43)Harvinder Kaur (68)
B R E A T H E A S Y
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Name DesignationAshok M Advani Executive Chairman
Satish Jamdar Managing Director
Shailesh Haribhakti
Director
Gurdeep Singh Director
Suneel M Advani Vice Chairman & Mng.Director
Vir S Advani Executive Director
Pradeep Mallick Director
Suresh N Talwar Director
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Company name Blue star ltd.
Founder Mohan T Advani
Incorporation Year 1949
ChairmanAshok M Advani
Managing DirectorSatish Jamdar
Company Secretary Sangameshwar Iyer
Auditor SR Batliboi & Associates Kasturi Bldg M T Advanichowk,
Registered Office Jamshedji Tata
Road, Mumbai, 400020, Maharashtra
Telephone- -
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Fax 91-022-66654151/2
E-mail [email protected]
Website http://bluestarindia.com
Face Value (Rs) 2
NSE Code BLUESTARCO
Listing Mumbai,NSE
Registrar's Name & Address
Link Intime India Pvt Ltd, C-13 Pannalal Silk, Mills Cmpd LBS
Marg, Bhandup West, Mumbai - 400 078.91-022-25963838
91-022-25946969
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Blue Star was founded in 1943, by Mohan T Advani, an entrepreneur of exemplary vision and drive.
Shortly after, the Company was selected by Washington, the US leader in airconditioning, as its Indiabased partner these were thefirst of numerous foreign associations to follow.
An expanding Blue Star then ventured into the manufacture of ice candy machines and bottle coolersand also began the design and execution of central airconditioning projects.
Then came the manufacture of water coolers.
In 1949, the proprietorship company set its sights on bigger expansion, took on shareholders andbecame Blue Star EngineeringCompany Private Limited.
Employee strength crossed the 1000 mark and the company went public in 1969 to become BlueStarLimited, as it continues to be called today.
Always moving with the times and ever on the lookout for business possibilities, BlueStar next set up asoftware export unit at Seeps, Mumbai in 1983. Then came associations with more global leaders - acollaboration with York International of USA for centralairconditioning equipment and joint ventureswith Motorola and Yokogawa
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In 1984, Ashok M Advani & Suneel M Advani, the sons of Mohan T Advani, took over thereins of the Company, after spending nearly 15 years within the Company steadilyclimbing
In keeping with this focus, an advanced manufacturing facility was set up at Dadrain1997, collaboration with Rheem , USA, to enhance manufacturingcompetency.
A new Corporate Vision was developed - "Todeliver a world-class customerexperience". Every employee is determined to follow this vision and keep theirorganization a competitive and forward-looking one.Blue Star crossed the Rs. 500croremilestone in 2000 and the Rs. 600 crore milestones in2002-03.
In the following three years, the Company nearly doubled its turnover, clocking Rs 1178crores in 2005-06.
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Mohan T Advani(an entrepreneur)
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ASHOK M ADVANI -Executive Chairman
Ashok M Advani is an MBA from the HarvardGraduate School of Business Administration,
an Electrical Engineer from MIT, USA
B.Sc (Honours) from Mumbai University.
He joined Blue Star in 1969 and held a varietyof senior positions in manufacturing and finance inthe Company before he took over the Company's affairs as Chairman and Chief Executive in 1984.
He was redesignated as Chairman & Managing Director in 2005 and Executive Chairman with effect fromJuly 1, 2009.
As Executive Chairman, he oversees Corporate Strategy, Corporate Governance, Investor Relations and
Corporate Social Responsibility.
Ashok is also the Vice Chairman of Blue Star Infotech Limited and on the board of Alfa Laval (India)Limited. He has been a member of the Local Advisory Board of The Chase Manhattan Bank and a pastPresident of the Bombay Chamber of Commerce and Industry.
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MISSION
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VISION
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Major Project by Blue StarLtd.
chhatrapati-shivaji-international-airport 17
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Major Project by Blue StarLtd.
Rashtrapati_Bhavan
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Major Project by Blue StarLtd.
Parliament-House
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Major Project by Blue StarLtd.
Dhyan-Chand-National-Hockey-Stadium20
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Major Project by Blue StarLtd.
AMRI hospital21
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Major Project by Blue StarLtd.
axis mall 22
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Major Project by Blue StarLtd.
delhi-metro23
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Major Project by Blue StarLtd.
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Major Project by Blue StarLtd.
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Major Project by Blue StarLtd.
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Major Project by Blue StarLtd.
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Major Project by Blue StarLtd.
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Major Project by Blue StarLtd.
M_A_Chidambaram_Stadium_Chennai 29
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Major Project by Blue StarLtd.
South Block
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Major International
Project by Blue StarLtd.
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Major Project by Blue StarLtd.
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Major Project by Blue StarLtd.
Amcorp Trade Centre Petaling Jaya, Malaysia
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Major Project by Blue StarLtd.
RitzCarlton hotel malacia34
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Major Project by Blue StarLtd.
Menara Dion, Malaysia 35
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Major Project by Blue StarLtd.
Ebene Cyber City, Mauritius
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1.CENTRALAIRCONDITIONING
SCREW CHILLERS
CENTRIFUGAL CHILLERS
SCROLL CHILLERS
DOUBLE SKIN AIRHANDLING UNITS
FAN COIL UNITS
PACKAGED ACS &
DUCTED SPLITS
LONG DISTANCE PIPINGPACKAGED ACS
HIPER PACKAGED ACS
VRF SYSTEM
2. ROOMAIRCONDITIONERS
WINDOW-AIRCONDITIONERS
SPLIT AIRCONDITIONERS
CASSETTE-AIRCONDITIONERS
VERTICOOL SPLIT ACS
CONCEALED SPLIT ACS
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3.Commercialrefrigeration
DEEP FREEZERS
ICE MACHINES
WATER COOLERS
FLEXI WATER COOLERS
BOTTLE COOLERS
MILK COOLERS
BOTTLED WATERDISPENSERS
4. COLD STORAGESMODULAR COLDROOMS
REFRIGERATION UNITS
PUF INSULATEDPANELS
RIPENING CHAMBERS
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5. SPECIALITYCOOLINGPRODUCTSPROCESS CHILLERSTELEPACS
PRECISIONAIRCONDITIONERSPRECISION CLIMATESEED STORAGESBULK MILK COOLERSMORTUARY
CHAMBERS
6. EXPORTSCHILLERSAIR SIDE PRODUCTS
ROOM
AIRCONDITIONERS
SPECIALAPPLICATIONS
REFRIGERATION
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Blue Star Ltd
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Blue StarInfotech
Blue StarDesign &
Engineering
Blue Star M& E designs
Blue Star Ltd.(Group Companies)
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2,347.13
1,772.19
807.65
292.5284.7
170.46 131.7556.62
Sales Whirlpool
Blue Star
Symphony
IFB Industries
Hitachi Home
Fedders Lloyd
Lloyd Electric
Value Ind
2,347.13
1,772.19
807.65
292.5
284.7
170.46
131.75
56.62
Market capitalisation (Rs. In
cr)
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40.1
59.9
Total no of shares =89936105
Promotors & Non-Promotors
Public Shareholding
Share Holding Pattern (%)
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0
500
1000
1500
2000
2500
3000
FY-07FY-08
FY-09FY-10
FY-11
1594.582221.59 2552.29
2524.97
2856.91
NET SALES(Rs. In crores)
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0500
100015002000
2500
3000
Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
1607.412270.09 2574.04 2556.11
2892.91
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0
50
100
150
200
250
300
71.18
174.09 180.29
211.49
155
92.6
242.06238.22
276.62
227.02
Net profit before & after tax (In Rs. Cr.)
47Mar-07 Mar-08 Mar-09 Mar-10 Mar-11
After Tax
Before Tax
Profit Ratios
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Profit Ratios2010-11 2009-10 2008-09 2007-08 2006-07
Net Sales 2,856.91 2,524.97 2,552.29 2,221.59 1,594.58
Gross Profit 282.67 305.84 277.65 271.54 123.04
Operating Profit 248.1 277.15 263.98 223.79 112.90Net Profit 155.00 211.49 180.29 174.09 71.18
0
2
4
6
8
10
12
14
7.71
12.22
10.8712.11
9.89
7.08
10.0710.34
10.97
8.68
4.46
7.83
7.068.37
5.42
GP
OP
NP
2010-11 2009-10 2008-09 2007-08 2006-07 48
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0
5
10
15
20
25
FY-07 Fy-08 FY-09FY-10
FY-11
Earning per share
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0
2
4
68
Fy-07 Fy-08 FY-09 FY-10 FY-11
3%
7% 7%8%
7%
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2011 2010 2009 2008 2007
Current Assets
Fixed Assed
Current liabilities
Current Liabilities
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Return on Capital Employed(%)
0
20
40
60
80
100
FY 2007FY2008
FY2009FY2010
FY2011
32.1
81.4
60.449.6
22.9
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Return on Shareholders
Funds
0
10
20
30
40
50
60
70
FY 2007FY2008
FY2009FY2010
FY2011
33.4
61.1
49.1
43
27
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CURRENT n QUICK RATIO
1.56
1.27
1.18 1.16
1.4
1.22
1.030.97
0.85
0.98
0
0.2
0.40.6
0.8
11.2
1.4
1.61.8
FY 2011 FY 2010 FY 2009 FY 2008 FY 2007
CURRENT RATIO
QUICK RATIO
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Cost of EQUITY (CAPM)
Rf= 7%Risk Premium = 8.5%
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Cost of equity= RF + beta(risk premium)
NSE 7%+0.7092(8.5%)= 13.02
BSE 7%+0.7257(8.5%)= 13.16
Beta factor Cost of Equity (%)
BSE 0.7257 13.16
NSE 0.7092 13.02
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Cost if Debt:-(Interest/ total debt)*100(24.39/418)*100=5.82 %
Cost of Equity:-(Divident/ Equity)*100(62.96/573.5)*10010.97%
[ (Debt/Debt+Equity)*Cost ofDebt ][(418.38/911.88)*5.82%]= 2.67%
[(Equity/Debt+Equity)*costof Equity][(573.18/911.88)*10.97%]=6.89%
= 2.67%+6.89%=9.56
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QUOTER
YEAR
1ST QUOTER
BSE NSE
2ND QUOTER
BSE NSE
3RD QUOTER
BSE NSE
4TH QUOTER
BSE
NSE
2007 229.90 230.95 232 226 314.90 315.10 444 444
2008 483 485 450 451.5
1
425 426 201 197.90
2009 140 140 226.55 227.0
5
347 346 348.45 350
2010 368.50 367.70 399 399.8
0
452.95 453.50 438 440
2011 360 360 342.90 342 264.95 262 188 189
2012 202.35 202.55
STOCK information BSE
LISTING: Mumbai,NSEStock Symbol: BLUESTARCO
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DEBT-EQUITY Contribution(%)
58
0
20
4060
80
100
FY2011 FY2010 FY2009FY2008
FY2007
42.18
1.97 6.04 12.1629.45
57.82
98.2293.96
87.84
70.55
DEBT
EQUITY
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DEBT-EQUITY RATIO
YEAR DEBT EQUITY DEBT-EQUITYRATIOO
2006-07 89.05 213.33 .42
2007-08 36.54 263.91 .14
2008-09 23.60 367.49 .06
2009-10 8.93 491.68 .02
2010-2011 418.38 573.50 .73
.
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0.42
0.140.06
0.02
0.73
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2006-07 2007-08 2008-09 2009-10 2010-11
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Cash flow STATEMENT
MAR-07 MAR-08 MAR-09 MAR-10 MAR-11
Net Profit Before Tax 227.00 276.62 238.22 242.02 92.60Net Cash From Operating Activities -74.94 115.47 169.72 133.78 60.12Net Cash (used in)/from
Investing Activities -143.02 -11.20 -80.75 -75.17 -23.72Net Cash (used in)/from Financing
Activities 244.46 -100.47 -86.00 -60.55 -34.16Net (decrease)/increase InCash and Cash Equivalents 26.50 3.81 2.98 -1.93 2.24
Opening Cash & Cash Equivalents 20.43 9.20 2.67 4.61 2.37
Closing Cash & Cash Equivalents 46.93 13.00 5.65 2.67 4.61
.Rs In cr
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Strengths:
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Only Blue Star manufactures open-type centrifugal chillers with ozone friendly refrigerant HCFC 123
Only Blue Star manufactures variable air volume systems for economic localized cooling control
Only Blue Star manufactures air handling units with dependable ratings to factory precision and thewidest choice with single skin, double skin, horizontal, vertical,ceiling suspended and unitary.
Air-conditioning of the largest number of synthetic fiber plants in India exceeding25,000 Tons and 36 customers
Largest Industrial air-conditioning contracts in India - RBI Note Mudran Private Limited: Rs.40 crores.
First to manufacture semi hermetic reciprocating compressors in India to international standards
First air-conditioning company to introduce the concept of a Comfort Shop. It has a strong setup, WillisCarrier Engineering Center, to provide technological support to develop new products and upgradeexisting ones.
It has successfully introduced finance schemes that have taken air-conditioners out of the luxurycategory and made it affordable for the homebuyer.
Strengths:
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Weaknesses
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Considered as premium brand so middleclass people think it is unaffordable.
Although BLUE STAR protects its Position inDomestic AC market but is regularly losing
market share.
Market penetration is still very low.
Low qualities resulting in exports pricesbeing non competitive.
Weaknesses
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Opport nities
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Confederation of Indian Industry (CII) has urged the
government to reduce specialexcise duty (SED) on air-conditioners from 16% to 8% in the forthcoming budget. Opportunity to influence Growing Indian middle class innfluencing their decisions
with regard to the products offered by Blue Star throughcomparatively lower prices. Advent of Internet provides an excellent opportunity toreach to a large base of customers and cut costs. The increasing presence of multinationals in India formanufacturing be itSamsung, LG, Carrier, Hitachi, thus providing an opportunityfor upgrading thequality of manufacture in the country.
Opportunities
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Likely to face fierce competition from domesticcompanies as they have wellacknowledged
brands, an extensive distribution network and betterinsights aboutthe local market conditions.Increased threat from cheaper imports, especiallyfrom ChinaMNCs like Samsung, Carrier, LG and Voltas are
continuously raisingtheir share while Blue Star despite of increasingsales is losing its market
share.
Threats:
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CORPORATE SOCIAL
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RESPONSIBILITY
The Company has been conscious of its responsibilities to society formany years.'Blue Star Foundation', a charitable trust set up by theCompany, gives financial support to institutions providing service inareas such as health, education, technical training and ruraldevelopment.
In addition, the Company donated Rs.25 lakhs towards setting up of acollege for Scheduled Class, Scheduled Tribes and Other BackwardClass youth in Silvassa and Rs.6.50 lakhs to Madras Diabetes ResearchFoundation during the year.
Besides charitable donations, the Company has been pursuing activities
in the field of environmental protection. Realizing the need forconserving energy, it has been investing in technology upgradation andR&D activities to develop energy efficient equipment and the use of newgeneration ozone friendly refrigerants. These efforts continue.
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Refrences :-
www.moneycontrol.com
www.nseindia.com
www.bluestarindia.com (official website)
www.capitaline.com
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http://www.moneycontrol.com/http://www.nseindia.com/http://www.capitaline.com/http://www.capitaline.com/http://www.nseindia.com/http://www.moneycontrol.com/ -
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