ABOUT THE COMPANY

Blue Star is India’s leading air conditioning and commercial refrigeration company, with an
annual revenue of over ₹5200 Cr, a network of 32 offices, 5 modern manufacturing facilities,
2800 employees, and 2900 channel partners. Blue Star’s integrated business model of a
manufacturer, contractor an after sales service provider enables it to offer an end-to-end
solution to its customers, which has proved to be a significant differentiator in the market
place. In fact, every third commercial building in India has a Blue Star product installed.
Blue Star has also forayed into the residential water purifiers business with a stylish
and differentiated range including India’s first RO+UV hot and cold water purifiers, as well
as air purifiers and air cooler business. The company also offers expertise in allied
contracting activities such as electrical, plumbing, fire-fighting and industrial projects, in
order to offer turnkey solutions, apart from execution of specialised industrial projects.
Blue Star’s other business include marketing and maintenance of imported
professional electronics and industrial product and systems, which is handed by a wholly
owned subsidiary of the company called Blue Star Engineering & Electronics Ltd.

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

VISION
To Dream, To Strive, To care And Above All, To Be The Best In Everything We Do.

OBJECTIVES OF THE COMPANY

 To ensure customer’s confidence through product quality & efficient & effective
service.
 To continually enhance Company’s worth to its shareholders and investors through
sound investment and profitable operation.
 To demonstrate a real concern for its employees and to constantly improve the
quality and value of their job and career advancement.
 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 Ac’s, in terms of its existing market size and future
market potential.

BOARD OF DIRECTORS
Ashok M Advani Chairman Emeritus
Suneel M Advani Chairman Emeritus
Shailesh Haribhakti Chairman
VIR S Advani V.C & M.D
B Thiagarajan M.D
Sam Balsara Independent Director
Arvind K Singhal Independent Director
Rumjhum Chatterjee Independent Director
Anil Harish Independent Director
Rajiv R Lulla Non-Executive Director
Sunaina Murthy Non-Executive Director
Dinesh N Vaswani Non-Executive Director

SUBSIDIARY BOARD OF DIRECTORS

Prem Kalliath CEO, Blue Star Engg & Electronics Ltd.

OUR VALUES
 Be a Company that is pleasure to do business with.
 Win our people’s hearts and mind.
 Continuously improve shareholder’s value
 Give primacy to meritocracy and professional management.
 Place the company’s interest above one’s own.
 Conduct business with personal integration and ethics.
 Treat business partners as respected members of our organisations.
 Encourage learning, experimentation and innovation in what we do.
 Ensure high standards of corporate governance.
 Work in a boundary-less manner between various functions to provide the best
solutions to customers.
 Be a good corporate citizen.

PRODUCTS OFFERED
 Room Air Conditioners.
  Water Purifiers.
 Air Purifiers.
 Air Coolers.
 Water Coolers.
 Central Air Conditioning.
 Commercial Refrigeration.
 Cold Storages.
 Speciality Products.

COMPETITORS
 Voltas
 Carrier Aircon
 Videocon
 Godrej
 Diaken
 ETA
 Suvidha

BLUE STAR FINANCE ( Rs in Lakhs)

Particulars 2018-19 2017-18

Share Capital 12,172.13 7,117.13

Total Assets and Liabilities 21,87.34 18,186.39
Operating Profit 7986.40 3921.59
Net Profit 5102.16 2407.63
Investments 5111.53 5396.53

STRATEGIES
 Product awareness
Advertising is the marketing force, which helps in mass selling and distribution
 Road side hoardings, Print Media, Banners & Signboards.
 Strong Dealer Network
The Company has got strong dealer network across India and the products are
available in each town and area.
 Credit Facilities and Discount to dealers
Dealers, retailers, sub-dealers are also vital to be due to be given due importance. It is
also necessary to understand the dealers, retailers, and sub-dealers because they are
one of the important people who can push the sales of the company. It was found that
dealers mainly want that the company should give them credit facilities and discounts.

BLUE STAR is the overall winner in its category. And according to them the dealers
are also the controller of the sales to some extent. One of the important information is
 that most of the dealers ask the customers to wait and assure him the delivery if the
particular brand is not available.

For Example, BLUE STAR comes out with new schemes for dealers every month for
special promotions. Special margins are made available to dealers from time to time.
Overall the company operates as many as half-a-dozen schemes at any given time.

 Customer Care
It was found that the company more or less analyses what customers are looking for
and then incorporate those features in their products. The company provides quick &
efficient after sales services.
The service mission of BLUE STAR is to become the most customer-oriented
company in the country, by building a proactive service organisation that
continuously strives to create customer satisfaction, by internalising the best practices
of customer relationships management.

SWOT Analysis

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.

WEAKNESS
 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.

OPPURTUNITIES
 Confederation of Indian Industry (CII) has urged the government to reduce special
excise duty (SED) on air-conditioners from 16% to 8% in the forthcoming budget.
 Opportunity to influence Growing Indian middle class in influencing 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 cost.
 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.

THREATS
 Likely to face fierce competition from domestic companies as they have well-
acknowledged brands, an extensive distribution network and better insights about the
local market conditions.
 Increased threat from cheaper imports, especially from China.
 MNC’s like Samsung, Carrier, LG and Voltas are continuously raising their share
while Blue Star despite of increasing sales is losing its market share.

CORPORATE SOCIAL RESPONSIBILITY

 Blue Star endeavours to support less privileged, rural and urban communities in the
country at large, with a focus on sections of vulnerable and marginalised local
communities in close proximity to its manufacturing facilities in semi-rural locations.
 Blue Star has a dedicated department for CSR, which aims at improving the quality of
air and water as well as food preservation solutions for the disadvantaged sections od
the society.
 Blue Star’s CSR programmes focus on vocational training of school dropouts in air
conditioning as well as mechanical, electrical and plumbing service; building water
purifications system and sanitation facilities in Government schools; and holistic
development initiatives around its manufacturing facilities.