BREATH EASY

Presented by :Amit (35) Sonia Dhiman (39) Narender kirmara (43) Harvinder Kaur (68)

Name
Ashok M Advani Satish Jamdar Shailesh Haribhakti Gurdeep Singh Suneel M Advani Vir S Advani Pradeep Mallick Suresh N Talwar

Designation
Executive Chairman Managing Director Director Director Vice Chairman & Mng.Director Executive Director Director Director

Company name Founder Incorporation Year Chairman Managing Director Company Secretary Auditor Registered Office Telephone

Blue star ltd. Mohan T Advani 1949 Ashok M Advani Satish Jamdar Sangameshwar Iyer SR Batliboi & Associates Kasturi Bldg M T Advani chowk, Jamshedji Tata Road, Mumbai, 400020, Maharashtra
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Fax E-mail Website

91-022-66654151/2 kptkutty@bluestarindia.com http://bluestarindia.com

Face Value (Rs)

NSE Code Listing

2
BLUESTARCO 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

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 India based 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 coolers and 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 and became Blue Star EngineeringCompany Private Limited.
Employee strength crossed the 1000 mark and the company went public in 1969 to become BlueStar Limited, as it continues to be called today. Always moving with the times and ever on the lookout for business possibilities, BlueStar next set up a software export unit at Seeps, Mumbai in 1983. Then came associations with more global leaders - a collaboration with York International of USA for centralairconditioning equipment and joint ventures with Motorola and Yokogawa

In 1984, Ashok M Advani & Suneel M Advani, the sons of Mohan T Advani, took over the reins of the Company, after spending nearly 15 years within the Company steadily climbing
In keeping with this focus, an advanced manufacturing facility was set up at Dadra in1997, collaboration with Rheem , USA, to enhance manufacturingcompetency. A new Corporate Vision was developed - "Todeliver a world-class customer experience". Every employee is determined to follow this vision and keep their organization a competitive and forward-looking one.Blue Star crossed the Rs. 500crore milestone in 2000 and the Rs. 600 crore milestones in2002-03. In the following three years, the Company nearly doubled its turnover, clocking Rs 1178 crores in 2005-06.

Mohan T Advani (an entrepreneur)

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ASHOK M ADVANI Executive Chairman

Ashok M Advani is an MBA from the Harvard Graduate 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 variety of senior positions in manufacturing and finance in the 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 from July 1, 2009. As Executive Chairman, he oversees Corporate Strategy, Corporate Governance, Investor Corporate Social Responsibility. Relations and

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 past President 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 Star Ltd.

chhatrapati-shivaji-international-airport
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Major Project by Blue Star Ltd.

Rashtrapati_Bhavan
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Major Project by Blue Star Ltd.

Parliament-House
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Major Project by Blue Star Ltd.

Dhyan-Chand-National-Hockey-Stadium
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Major Project by Blue Star Ltd.

AMRI hospital
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Major Project by Blue Star Ltd.

axis mall

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Major Project by Blue Star Ltd.

delhi-metro
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Major Project by Blue Star Ltd.

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Major Project by Blue Star Ltd.

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Major Project by Blue Star Ltd.

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Major Project by Blue Star Ltd.

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Major Project by Blue Star Ltd.

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Major Project by Blue Star Ltd.

M_A_Chidambaram_Stadium_Chennai
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Major Project by Blue Star Ltd.

South Block
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Major International Project by Blue Star Ltd.

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Major Project by Blue Star Ltd.

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Major Project by Blue Star Ltd.

Amcorp Trade Centre Petaling Jaya, Malaysia

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Major Project by Blue Star Ltd.

RitzCarlton hotel malacia

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Major Project by Blue Star Ltd.

Menara Dion, Malaysia

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Major Project by Blue Star Ltd.

Ebene Cyber City, Mauritius

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1.CENTRAL AIRCONDITIONING
SCREW CHILLERS CENTRIFUGAL CHILLERS

2. ROOM AIRCONDITIONERS
WINDOWAIRCONDITIONERS SPLIT AIRCONDITIONERS CASSETTEAIRCONDITIONERS VERTICOOL SPLIT ACS

SCROLL CHILLERS
DOUBLE SKIN AIR HANDLING UNITS FAN COIL UNITS

PACKAGED ACS & DUCTED SPLITS

LONG DISTANCE PIPING PACKAGED ACS HIPER PACKAGED ACS VRF SYSTEM

CONCEALED SPLIT ACS

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3.Commercial refrigeration
DEEP FREEZERS ICE MACHINES WATER COOLERS FLEXI WATER COOLERS BOTTLE COOLERS MILK COOLERS BOTTLED WATER DISPENSERS

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

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5. SPECIALITY COOLING PRODUCTS PROCESS CHILLERS TELEPACS PRECISION AIRCONDITIONERS PRECISION CLIMATE SEED STORAGES BULK MILK COOLERS MORTUARY CHAMBERS

6. EXPORTS CHILLERS AIR SIDE PRODUCTS ROOM AIRCONDITIONERS SPECIAL APPLICATIONS

REFRIGERATION

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Blue Star Ltd

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Blue Star Ltd. (Group Companies)

Blue Star Infotech
Blue Star Design & Engineering Blue Star M & E designs

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Market capitalisation (Rs. In cr)

Sales
170.46 284.7 292.5 807.65 1,772.19 2,347.13 131.75 56.62

Whirlpool Blue Star Symphony IFB Industries Hitachi Home Fedders Lloyd

2,347.13 1,772.19

807.65
292.5 284.7 170.46 131.75 56.62
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Lloyd Electric
Value Ind

Share Holding Pattern (%)

Total no of shares =89936105

40.1 59.9

Promotors & NonPromotors Public Shareholding

NET SALES(Rs. In crores)

3000
2500 2000 1500 2221.59 2524.97 2856.91

1594.58

2552.29

1000
500 0 FY-07 FY-08

FY-09

FY-10

FY-11

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3000 2500 2000 1500 1000 500 0

2892.91 2270.09 1607.41 2574.04 2556.11

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11
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Net profit before & after tax (In Rs. Cr.)

300
276.62

250 200

242.06

238.22
211.49

After Tax

227.02

174.09

Before Tax

180.29

150
100 50 0
Mar-07 Mar-08 Mar-09 Mar-10

155
71.18

92.6

Mar-11

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Profit Ratios
Net Sales Gross Profit Operating Profit Net Profit 2010-11 2,856.91 282.67 248.1 155.00 2009-10 2,524.97 305.84 277.15 211.49 2008-09 2,552.29 277.65 263.98 180.29 2007-08 2,221.59 271.54 223.79 174.09 2006-07 1,594.58 123.04 112.90 71.18

14 12 10 8 7.71 7.08 4.46 5.42 12.22 10.07 7.83 7.06 10.87 10.34 8.37 12.11 10.97 9.89 8.68 GP OP NP

6
4

2 0

2010-11

2009-10

2008-09

2007-08

2006-07

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Earning per share

25
20 15 10 5 0

FY-07 Fy-08

FY-09

FY-10

FY-11
49

8
6 4 2 0 Fy-07

7% 3%

7%

8%

7%

Fy-08

FY-09

FY-10
50

FY-11

2011 Current Assets

2010

2009

2008

2007

Fixed Assed
Current liabilities Current Liabilities

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Return on Capital Employed(%)

100 80 60 40 20 0 FY 2007

81.4 60.4 32.1

49.6
22.9
FY2008 FY2009

FY2010

FY2011
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Return on Shareholders Funds

70 60 50 40 30 20 10

61.1
49.1 33.4 43 27
FY 2007

0
FY2008 FY2009

FY2010

FY2011
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CURRENT n QUICK RATIO

1.8
1.6
1.56 1.4 1.22 1.27 1.03 1.18 1.16 0.98 0.85
CURRENT RATIO QUICK RATIO

1.4
1.2 1 0.8 0.6 0.4 0.2 0

0.97

FY 2011 FY 2010 FY 2009 FY 2008 FY 2007

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Cost of EQUITY (CAPM)

Cost of equity= RF + beta(risk premium)

Rf= 7% Risk Premium = 8.5%

Beta factor BSE NSE
NSE BSE

Cost of Equity (%) 13.16 13.02

0.7257 0.7092
7%+0.7092(8.5%)= 13.02 7%+0.7257(8.5%)= 13.16

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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)*100 10.97%

[ (Debt/Debt+Equity)*Cost of Debt ] [(418.38/911.88)*5.82%] = 2.67%

[(Equity/Debt+Equity)*cost of Equity] [(573.18/911.88)*10.97%] =6.89%

= 2.67%+6.89% =9.56

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STOCK information BSE

LISTING: Mumbai,NSE Stock Symbol: BLUESTARCO
1ST QUOTER YEAR 2007 2008 2009 2010 2011 2012 229.90 483 140 368.50 360 202.35 230.95 485 140 367.70 360 202.55 232 450 226.55 399 342.90 226 451.5 1 227.0 5 399.8 0 342 314.90 315.10 444 425 347 426 346 201 348.45 BSE QUOTER NSE 2ND QUOTER BSE NSE 3RD BSE QUOTER NSE 4TH QUOTER BSE NSE 444 197.90 350 440 189
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452.95 453.50 438 264.95 262 188

DEBT-EQUITY Contribution(%)
98.22 100 80 60 57.82 42.18 29.45 1.97 6.04 12.16 93.96

87.84 70.55

40
20 0 FY2011 FY2010 FY2009

DEBT EQUITY

FY2008

FY2007

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DEBT-EQUITY RATIO
.

YEAR

DEBT

EQUITY

DEBT-EQUITY RATIOO .42 .14

2006-07 2007-08

89.05 36.54

213.33 263.91

2008-09
2009-10 2010-2011

23.60
8.93 418.38

367.49
491.68 573.50

.06
.02 .73

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0.8 0.7 0.6 0.5

0.73

0.4 0.3
0.2 0.1 0

0.42

0.14 0.06
2006-07 2007-08 2008-09

0.02
2009-10 2010-11
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Cash flow STATEMENT

.Rs In cr
MAR-07 MAR-08 Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents Opening Cash & Cash Equivalents Closing Cash & Cash Equivalents 227.00 -74.94 -143.02 276.62 115.47 -11.20 MAR-09 238.22 169.72 -80.75 MAR-10 242.02 133.78 -75.17 MAR-11 92.60 60.12 -23.72

244.46 26.50 20.43 46.93

-100.47 3.81 9.20 13.00

-86.00 2.98 2.67 5.65

-60.55 -1.93 4.61 2.67

-34.16 2.24 2.37 4.61 61

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Strengths:
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 the widest choice with single skin, double skin, horizontal, vertical, ceiling suspended and unitary. Air-conditioning of the largest number of synthetic fiber plants in India exceeding 25,000 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, Willis Carrier Engineering Center, to provide technological support to develop new products and upgrade existing ones. It has successfully introduced finance schemes that have taken air-conditioners out of the luxury category and made it affordable for the homebuyer.

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Weaknesses
Considered as premium brand so middle class people think it is unaffordable. Although BLUE STAR protects its Position in Domestic AC market but is regularly losing market share. Market penetration is still very low. Low qualities resulting in exports prices being non competitive.

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Opportunities
Confederation of Indian Industry (CII) has urged the government to reduce specialexcise duty (SED) on airconditioners from 16% to 8% in the forthcoming budget. Opportunity to influence Growing Indian middle class in nfluencing their decisions with regard to the products offered by Blue Star through comparatively lower prices. Advent of Internet provides an excellent opportunity to reach to a large base of customers and cut costs. The increasing presence of multinationals in India for manufacturing be it Samsung, LG, Carrier, Hitachi, thus providing an opportunity for upgrading the quality of manufacture in the country.
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Threats:
Likely to face fierce competition from domestic companies as they have wellacknowledged brands, an extensive distribution network and better insights about the local market conditions. Increased threat from cheaper imports, especially from China MNCs like Samsung, Carrier, LG and Voltas are continuously raising their share while Blue Star despite of increasing sales is losing its market share.

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CORPORATE SOCIAL RESPONSIBILITY

The Company has been conscious of its responsibilities to society for many years.'Blue Star Foundation', a charitable trust set up by the Company, gives financial support to institutions providing service in areas such as health, education, technical training and rural development. In addition, the Company donated Rs.25 lakhs towards setting up of a college for Scheduled Class, Scheduled Tribes and Other Backward Class youth in Silvassa and Rs.6.50 lakhs to Madras Diabetes Research Foundation during the year. Besides charitable donations, the Company has been pursuing activities in the field of environmental protection. Realizing the need for conserving energy, it has been investing in technology upgradation and R&D activities to develop energy efficient equipment and the use of new generation 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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