PIONEER INSTITUTE OF PROFESSIONAL STUDIES

Diligence & Excellence Since 1996

SUBMITTED TO Prof. Rashmi Choudhary

SUBMITTED BY GAURAV JHANWAR MBA 3RD SEM.

SWOT ANALYSIS OF

BLUR STAR LIMITED

PHASE : 1

S.N. 1 2 3 4 5 6 7 8 9

Particular Company Profile Promoters Vision & Mission Top Management Product & Brands Location of Manufacturing Unit Manufacturing Unit Capacity FINANCIAL ANALYSIS Shareholding Pattern

Page No. 4 5 5 6 7-10 11 12 13-14 15

About the business & Company

Blue Star is India's largest central airconditioning company with an annual turnover of Rs 2900 crores, a network of 29 offices, 6 modern manufacturing facilities, over 1200 dealers and around 2800 employees. Company fulfils the airconditioning needs of a large number of corporate, commercial and residential customers and has also established leadership in the field of commercial refrigeration equipment ranging from water coolers to cold storages. The Company also offers comprehensive Electrical Contracting and Plumbing & Fire Fighting Services. Blue Star's other businesses include marketing and maintenance of hi-tech professional electronic and industrial products. Blue Star has business alliances with world renowned technology leaders such as Rheem Mfg Co, USA; Hitachi, Japan; Eaton - Williams, UK; Thales e-Security Ltd., UK; Jeol, Japan and many others, to offer superior products and solutions to customers. Company has manufacturing facilities at Thane, Dadra, Bharuch, Himachal and Wada which use state-of-the-art manufacturing equipment to ensure that the products have consistent quality and reliability. Blue Star primarily focuses on the corporate and commercial markets. These include institutional, industrial and government organizations as well as commercial establishments such as showrooms, restaurants, banks, hospitals, theatres, shopping malls and boutiques. The Company has started pursuing the residential segment with its wide range of sleek and contemporary Room ACs.

PROMOTERS
Blue Star was founded in 1943, by Mohan T Advani, an entrepreneur of exemplary vision and drive.

Corporate Vision

The company has been working on its strong & broad vision based guide lines, which aim at delivering world-class customer experience. For this it has been constantly working for the customers & modifying its strategies in their favor.

OBJECTIVES OF THE COMPANY  To ensure customers confidence through product quality & efficient & effective service.  To continually enhance Companys worth to its shareholders and investors through sound investment and profitable operation.  To be a good corporate who contributes positively to its community by protecting the environment and working for public welfare .  To respect the laws, rules and customers of the land and to ensure that the conduct of all company activities will always be to the highest ethical standards .  To identify and determine suitable marketing strategic for boosting up the market share of AC, particularly for Blue Star Ltd .  To make a detailed study of the Acs, in terms of its existing market size and future market potential.

Top Management
BOARD OF DIRECTORS
Ashok M Advani
Executive Chairman

Suneel M Advani
Vice Chairman & Managing Director

Satish Jamdar
Managing Director

Vir S Advani
Executive Director

Shailesh Haribhakti Pradeep Mallick Gurdeep Singh Suresh N Talwar

CORPORATE MANAGEMENT Ashok M Advani Executive Chairman Suneel M Advani Vice Chairman & Managing Director Satish Jamdar Managing Director Vir S Advani Executive Director Avinash Pandit President - Electro Mechanical Projects Group B Thiagarajan President - Airconditioning & Refrigeration Products Group J M Bhambure Executive Vice President - R&D and Technology Tojo Jose Executive Vice President- Human Resources & Administration Manek Kalyaniwala Executive Vice President - Finance Arun Khorana Executive Vice President Professional Electronics & Industrial Systems Division G Anandkumar Vice President - Plumbing Projects Division R Aravindan Vice President - Airconditioning Projects Division (South) Sujan Chatterjee Vice President - Corporate Finance & Accounts Sumanta Chaudhuri Vice President - Electrical Projects Division
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R G Devnani Vice President - Thane, Wada, Dadra & Bharuch Plants C P Mukundan Menon Vice President - Room Airconditioners Division P Venkat Rao Vice President - Packaged Airconditioning Division & Refrigeration Products Division D H Roy Vice President - Himachal Plants D P Singh
Vice President - Infrastructure Projects Division

K P Sukumar
Vice President - Airconditioning & Refrigeration Service Division

Products and Brands

CENTRAL AIRCONDITIONING
SCREW CHILLERS CENTRIFUGAL CHILLERS SCROLL CHILLERS DOUBLE SKIN AIR HANDLING UNITS FAN COIL UNITS PACKAGED ACS & DUCTED SPLITS LONG DISTANCE PIPING PACKAGED ACS HIPER PACKAGED ACS VRF SYSTEMS

ROOM AIRCONDITIONERS
WINDOW AIRCONDITIONERS SPLIT AIRCONDITIONERS CASSETTE AIRCONDITIONERS VERTICOOL SPLIT ACS CONCEALED SPLIT ACS

COMMERCIAL REFRIGERATION
DEEP FREEZERS ICE MACHINES WATER COOLERS FLEXI WATER COOLERS BOTTLE COOLERS MILK COOLERS BOTTLED WATER DISPENSERS

COLD STORAGES
MODULAR COLD ROOMS REFRIGERATION UNITS PUF INSULATED PANELS RIPENING CHAMBERS

SPECIALITY COOLING PRODUCTS

PROCESS CHILLERS TELEPACS PRECISION AIRCONDITIONERS PRECISION CLIMATE SEED STORAGES BULK MILK COOLERS MORTUARY CHAMBERS

EXPORTS
CHILLERS AIR SIDE PRODUCTS ROOM AIRCONDITIONERS SPECIAL APPLICATIONS REFRIGERATION

SOME OF NEW PRODUCTS

Blue Star - Turbocor Centrifugal Chiller

Inverter VRF System

HiPer Green Packaged AC

Flexi Water Cooler

Inverter Split AC

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Refrigerated Display Unit

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Location of Manufacturing Units and Capacity

Blue Star has modern, state-of-the-art manufacturing facilities at Thane, Dadra, Bharuch, Himachal and Wada. Another plant is being planned in Himachal and will be operational in FY12. Thane, which is the oldest manufacturing facility of Blue Star, primarily manufactures a range of screw chillers in air-cooled, water-cooled and flooded types. During the year, in order to improve conversion costs and to overcome material price increase, the plant undertook value analysis and value engineering projects and process improvement initiatives. There was focus on energy management, enhancing safety practices and TPM during the period. Dadra plant is regarded as one of the best manufacturing facilities in the country for high quality airconditioning products. The product range includes packaged/ducted split airconditioners, VRF systems, precision control packaged airconditioners and telepacs for the telecom sector. During the year, energy management, safety, value engineering and TPM were key focus areas. Six sigma and quality circle initiatives are actively practiced at the plant. Bharuch plant, which mainly manufactures commercial refrigeration products and systems, recorded the highest ever production driven by enhanced demand for water coolers and deep freezers. Further, the investments in the plant over the last few years towards modernization of PU sandwich panels helped in increasing output. Considering the anticipated growth over the next few years, initiatives are underway to double the production capacity by investing in state-of-the-art machinery. The safety projects during the year enabled the plant in once again receiving the safety award for Exhibiting excellent safety measures in factory premises by Gujarat Gas Ltd. The Himachal plant manufactures window and split airconditioners. During the year, a new range of star-rated products was introduced. The quality systems were further strengthened to enhance reliability of the finished goods including a 3-layered process audit and a 7-day long run test. This has helped in achieving the performance of the products in a narrow band of tolerance thereby adhering to the Bureau of Energy Efficiency (BEE) standards and improving reliability.
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Wada Plant mainly focused on consolidation of existing products as well as introduction of new products. The plant is equipped with modern manufacturing facilities with complete vertical integration and manufactures a wide range of products including air handling units, battery coolers and roof top units. Scroll chillers were shifted from Thane Plant to the Wada Plant during latter part of the year. The scroll chiller assembly line is a modular set-up where the capacity can be doubled in a short span of time with minimum investment. In addition, a refrigeration products test lab, a psychometric lab and reliability test labs were also set up to upgrade product development and testing capabilities.

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Financial analysis

Particulars
Gross Margin (excl. NonOperating Income) Operating Margin (excl. Non-Operating Income) Return on Capital Employed Return on Shareholders Funds Dividend Per Share (Rs.) Earnings Per Share (Rs.) Capital Turnover Debt/Equity

2010-11
23.5% 9.8% 22.9% 27.0 % 7 17.23 2.52 0.73

2009-10
25.9% 12.0 % 49.6 % 43.0% 8 23.52 4.56 0.13

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Particulars
PBIT in cr. PBT in cr. PAT in cr. DEPRECIATION in cr.

2010-11
282.67 227.00 155.00 31.71

2009-10
305.84 276.62 211.49 34.73

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Shareholding Pattern:

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