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COMPANY OVERVIEWBlue Star is India's largest central air-conditioning company with an annual turnover of Rs 2270 crores, a network of 24 offices, 5 modern manufacturing facilities, 650 dealers and around 2500 employees. 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; ISA, Italy and many others, to offer superior products and solutions to customers. The 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 fulfills the air-conditioning needs of a large number of corporate and commercial customers and has also established leadership in the field of commercial refrigeration equipment ranging from water coolers to cold storages. Blue Star's other businesses include marketing and maintenance of hi-tech professional electronic and industrial products. 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.

VISION, MISSION, OBJECTIVES To deliver a world class customer experience. Focus on profitable company growth. Be a company that is a pleasure to do business with. Work in a boundary less manner between divisions to provide best solutions to customers. Win our peoples hearts and minds. Place the companys interest above ones own. Encourage innovation, creativity and experimentation in what we do. 2

Build an extended organisation of committed business partners. Be a good corporate citizen. Honour all personal and corporate commitments. Maintain personal integrity. Ensure high standards of corporate governance.

HISTORY AND GROWTH OF COMPANYBlue Star was founded in 1943, by Mohan T Advani, an entrepreneur of exemplary vision and drive. The Company began as a modest 3-member team engaged in reconditioning of air conditioners and refrigerators. 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 Engineering Company Private Limited. Ever since, there has been a constant and profitable growth. Blue Star diversified and took up agencies for Material Testing Machines and Business Machines. The export arena beckoned and the Company began exporting water coolers to Dubai, where in fact, 'Blue Star' soon became the generic name for water coolers. The sixties and the early seventies witnessed Blue Star continuing to expand and thrive. A team of dedicated professionals aided Mohan T Advani in ever furthering his vision of a profitable company dedicated to its ideals of professionalism and success. Employee strength crossed the 1000 mark and the company went public in 1969 to become Blue Star Limited, as it continues to be called today. Blue Star crossed the Rs. 500 crore milestones in 2000 and the Rs. 600 crore milestones in 2002-03. With the boom in construction activity and increased infrastructure investments, the Company leveraged its leadership position to grow aggressively. In the following three years, the Company nearly doubled its turnover, clocking Rs 1178 crores in 2005-06. Even more than size, Blue Star enjoys an enviable reputation as an ethical corporation, ever mindful of its obligations towards customers, shareholders, dealers, business partners, employees and the environment in which it operates.




Year 1943 1946 1947

Event Mohan T Advani establishes Blue Star Engineering Company as a proprietary firm Blue Star secures Melchior Armstrong Dessau agency Worthington selects Blue Star as Indian Partner. Manufacturing of ice candy machines and bottle coolers begins. Central airconditioning system design and execution begins Manufacture of water coolers commences Proprietorship converted to Private Limited Companies Blue Star selected as distributor for Honeywell GDR Testing machines distributorship begins Perkin-Elmer tie-up marks the start of the electronics business. GDR business machines agency commences Total Income crosses the Rs 1 crore mark Total employment crosses 1,000 Techniglas Pvt Ltd set up to manufacture insulation material Factory moves from Colaba in Mumbai to Thane Hewlett- Packard distributorship commences First skyscrapers of Mumbai Air India Building, Express Towers and Oberoi Hotel set-up all air-conditioned by Blue Star Total Income crosses Rs 10 crores. Employment crosses 2,000 Water Cooler manufacturing license granted to Yusuf Alghanim, Kuwait Middle East thrust begins. Joint Venture (JV) with Al Shirawi in Dubai Hitachi Medical Equipment distributorship begins Industrial Division commences activity Bharuch Factory set up Major AC and R projects executed in the Middle East International Software Division inaugurated in Seepz York technology collaboration begins Manufacture of centrifugal packaged chillers commences at Thane Plant Total Income crosses Rs 100 crores Yokogawa Blue Star JV formed Gandhinagar factory set up for EPABX systems Blue Star becomes Indias largest central air-conditioning company Manufacturing collaboration with Mitsubishi 5

1948 1949 1954 1955 1957 1960 1964 1965 1969 1970 1972 1972 1974 1977 1977 1978 1980 1980-86 1983 1984 1985 1986 1987 1987 1988 1988

MANUFACTURING PROCESSBlue Star understands that skilled manpower and other staff members are an indispensable part of the manufacturing set-up and the management should work shoulder to shoulder with them. Management grade staff too is put through training programs on various aspects of manufacturing and business. Also, performance awards are announced every year. Apart from enhancing the skills of the staff, such initiatives create a positive, firm and lasting emotional bond between staff and company. This in turn contributes to greater productivity.

MANUFACTURING SYSTEMSThe factories make extensive use of IT to enhance productivity and product development capabilities. All our factories are ISO 9001: 2000 certified BAAN ERP implemented in 3 factories and Himachal under implementation.

RAW MATERIAL AND MATERIAL MANAGEMENTSheet metal fabrication A high degree of repetitive accuracy in sheet metal fabrication is achieved by using specialized equipment, CNC metal forming machines. The raw material used is prime quality, corrosionresistant, galvanized steel for enhanced life of the product. The equipment used for processing the steel includes CNC machines such as an Amada turret punch press, a LVD / Amada hydraulic press-break. All these allow for high quality cabinet fabrication within tight tolerances

Power coating plant The state-of-the-art powder coating plant covers a wide range of very specialized process equipment, and is fully automated. A water-softening unit treats the raw water before it is utilized in the automatic hot spray pre-treatment system. It provides an even distribution of chemicals,


controlled by an auto dosing mechanism that maintains the chemical bath composition with the help of electronic sensors. After a final mineral water rinse, the components pass through a dryoff oven under dust-free conditions to remove all traces of moisture. The components are then transferred into the powder painting booth for coating, where temperature, humidity and dust levels are controlled. The powder painting equipment, supplied by Nordson, USA, is equipped with automatic electromechanical oscillators, for even powder deposition. Desiccant dry air-with a dew point of minus 400 C - helps avoid any moisture contamination of the powder. A 'smart spray' mechanism senses the conveyor movement and component geometry to adjust powder flow. Polyester powder - ideally suited for out door applications - provides the maximum protection against UV deterioration and corrosion. The components finally pass through a temperature-regulated curing oven to achieve desired gloss and surface hardness. Heat exchangers Experienced engineers create heat exchanger designs using high precision design software, which are then validated in our test labs. Blue Star also makes sure that the designs are energy efficient for optimum heat transfer. Fin and Tube: The sophisticated coil shops have some of the most advanced machines from USA, Japan and Korea. The Burr Oak coil line produces energy efficient DX heat exchangers. These have plain or enhanced split fins with grooved copper tubes for maximum heat transfer efficiency. Then the source plain and inner grooved copper tubes with coated aluminum fin stock of international quality from leading manufacturers to fit our specifications. Shell and Tube: Blue Star has shell and tube exchangers using specially enhanced surface copper tubes and shell design as per Blue Star or TEMA standards. Blue Star uses Heat Transfer Research Inc. (HTRI design software for these heat exchangers). Plate Type: Blue Star products also incorporate stainless steel plate heat exchangers for specialized process applications. System tubing 7

3-axis CNC copper tube-bending machines from Japan fabricate wrinkle-free system tubing to exact dimensions for a perfect stress-free fit. Special purpose machines carry out operations like end closing, flaring and forming for good joint formation. Prime quality copper tubes sourced globally help in optimum product performance. Brazing The brazing process is carried out in an inert atmosphere to avoid oxidation and the resultant impurities from contami