blue star ltd

8/2/2019 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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Rashtrapati_Bhavan

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Parliament-House

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Dhyan-Chand-National-Hockey-Stadium20


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AMRI hospital21


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axis mall 22


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delhi-metro23


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M_A_Chidambaram_Stadium_Chennai 29


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South Block

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Major International

Project by Blue StarLtd.

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Amcorp Trade Centre Petaling Jaya, Malaysia

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RitzCarlton hotel malacia34


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Menara Dion, Malaysia 35


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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

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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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R t Sh h ld


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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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blue star ltd

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