Blue Star Company
Blue Star Limited is an Indian multinational electronics firm specializing in air conditioning and commercial refrigeration product design, development, production, and marketing. It is the country's second-biggest domestic air conditioning player, with headquarters in Mumbai.
Blue Star Limited is a company based in the United Kingdom, founded in 2010. It has established itself as one of India's leading suppliers of split air conditioner and AC repair services. Blue Star Limited is a recognized company on Trade India that offers a broad range of Energy Efficient Split Air Conditioner for Home and Office, Air Conditioner (Blue Star), and other products.
About the company
Mohan T Advani launched Blue Star as a reconditioning firm in 1943.
The business started as a small three-person team refurbishing air conditioners and refrigerators. Within three years, the business had won the agency for Melchoir Armstrong Dessau's air conditioning equipment, situated in the United States. Worthington, the US pioneer in air conditioning, chose the business as their India-based partner in 1947. In 1949, the proprietorship firm decided to expand by acquiring shareholders and renaming itself Blue Star Engineering Company Pvt Ltd. The corporation has expanded its horizons by acquiring Material Testing Machines and Business Machines agencies. In 1970, the Company became the exclusive distributor of Hewlett-Packard goods in India. In Dubai, Blue Star formed a joint venture with Al Shirawi in 1977. In 1978, an Industrial Division was formed to supplement existing air-conditioning projects and to take on complete industrial projects. In the year 1980, the Bharuch plant was established. In 1983, they also established a software export business at Seepz Mumbai. They partnered with York International of the United States for central air conditioning systems in 1984. They formed joint partnerships with Motorola and Yokogawa within three years. The manufacturing relationship with Mitsubishi began in 1988. An advanced manufacturing plant was established in Dadra in 1997 in technical partnership with Rheem USA to improve production expertise. In October 2005, a sophisticated cold room panel production plant was also opened.
In May 2005, the initial phase of building a fourth facility at Kala Amb was finished, and production began. In March 2008, the business finished the initial construction phase of their fifth factory in Wada, Maharashtra, and began production. In January 2008, the company strengthened its projects business by strategically acquiring Naseer Electricals Pvt Ltd, a leading electrical contracting firm. The Company is also in the process of merging with Admo Holdings Pvt. Ltd, Sunag Investments Pvt. Ltd, Sunadhad Investments Pvt. Ltd, and Mohan T Advani Finance Pvt. Ltd. The Delhi Metro Rail Corporation granted the business a Rs 104 crore deal in July 2008 for delivering air conditioning systems to seven metro stations.
Customers may expect outstanding goods and solutions from companies like Jeol Japan, ISA Italy, and many more. Rheem Mfg Co USA, for example, is a world-renowned technological leader with whom the firm has formed commercial ties. The firm has production facilities in Thane, Dadra, Bharuch, Himachal Pradesh, and Wada that employ cutting-edge technologies to provide constant quality and dependability.
Over and beyond the required characteristics, Blue Star's 4th generation VRF IV Plus offers various unique benefits, including 100 percent inverter compressors, the newest worldwide technology. It introduced five air purifier models, including one with a HEPA filter, ionizer technology, and plasma technology for rooms ranging from 200 to 400 square feet. Blue Star offered three air cooler models aimed at budget-conscious clients in non-humid parts of North and Central India for sizes ranging from 100 to 300 square feet. During the review period, demand for industrial marriage/banquet halls, showrooms, and offices increased.
Blue Star expanded its presence in five countries in 2016, including Kenya, Sudan, Vietnam, Iran, and Tanzania. The Company attended several international exhibits, including the Big 5 in Dubai, the Big Show in Oman, the Middle East VRF Conference in Dubai, and major trade fairs in other countries, which expanded networking possibilities and brand exposure. It also ran print adverts in major UAE trade publications. During FY16, an associate investee firm, Blue Star Infotech Ltd (BSIL), sold its IT business to monetize and earn significant value for its shareholders.
Blue Star announced strategic steps to boost the value of central air conditioning equipment while also managing and motivating channel partners. During 2017, specific programs aimed at architects, interior designers, and consultants were undertaken. In 2017, the unitary goods category introduced a new line of modern and attractive room air conditioners for the domestic market, including the industry's widest selection of inverter split air conditioners.
As the Company improved its interaction with retailers, sales of bottled water dispensers increased significantly. With increased demand from the education and industry sectors, storage water coolers also did well. The market reacted well to Blue Star storage water coolers with built-in water filters. Traditional cold chain areas such as medicines and ice cream made considerable contributions, with many major firms investing in cold rooms for their warehouses and distribution locations around the nation.
With certain multinational chains changing their business strategies for India, the quick-service restaurant category had mixed outcomes. The Company's clients are well-known pharmaceutical companies such as Sun Pharma, Gland Pharma, Mylan, Dr. Reddy's, GlaxoSmithKline, Sanofi, and ice cream giants Amul, Creambell and Mother Dairy are among the companies involved. Most of these food businesses still consider Blue Star a favored partner.
The Company joined the household water purifier market in 2017 by introducing a line of elegant, unique, and premium products.
The Company extended its product range in the adjacent cooling field in 2017 with the limited-edition introduction of air coolers. During the Christmas season in FY17, the Company released five air purifier products, all of which were high-end premium variations. Electric RO UV RO+UV and its variations account for over 3 million units sold each year. In FY 2017, the Company introduced 13 models, with the most color choices of any new entry in the category. These purifiers are unique in that they have features like hot and cold water touch sensors, computerized dispensing, and filter replacement reminders. Eleven of the thirteen types include double-layered RO+UV protection, ensuring that the water is completely safe and clean.
Blue Star water purifiers are offered in 80 cities via approximately 135 channel distributors, including e-commerce channels and contemporary trade. In the market, the items have gotten a lot of positive feedback. In the professional electronics and industrial category, the Non-Destructive Testing company had strong demand from steel bar producers for imported electronics combined with locally developed and built mechanics in 2017. In 2017, the Company took part in international events worldwide, including the Hotel Asia Exhibition in the Maldives. Abu Dhabi hosts the Climate Abu Dhabi Expo. Apart from hosting events in Qatar and Oman with its partners, the company participated in networking events in Sri Lanka, Maldives, and Oman.
Blue Star also placed print advertising in significant newspapers and trade publications throughout the Middle East during the review period. Blue Star shares were moved to Group A from Group B, which included the top 200 businesses, in January 2018 based on many characteristics such as market capitalization, trading volumes, figures, track records, earnings, dividends, shareholding patterns, and qualitative features such as governance. In FY18, the Company introduced 100 new air conditioner models, including 40 inverter split air conditioners that are very energy efficient.
A new smart customer-centric mobile application was also developed by the company, which assures greater comfort and gives the greatest customization and the option to remotely monitor and manage the machine. During FY 2018, the commercial refrigeration products industry grew significantly. Deep freezer sales grew thanks to increased demand from dairy ice cream and food processing industries, including Havmor, Creambell, Amul, and Hatsun. During FY17, new glass-top and curved glass-top deep freezer models with varying capacities gained popularity in the frozen goods and ice cream markets. With increased channel strength, kitchen refrigeration items rose in popularity and received significant orders from the hotel industry. Orders for medical refrigeration items have also increased from scientific and research institutes. With increased penetration into the retail industry, the sale of bottled water dispensers has seen significant growth. During the holiday season, the Company introduced two new air purifier models, both of which are high-end premium versions, bringing the total number of types to ten.
Blue Star made great success in the home water purifier market in 2018, with a selection of attractive and unique products ranging in price from Rs 7900 to Rs 44900. The need for clean drinking water has risen, owing to degradation in water quality, which has increased in waterborne infections. The Company has introduced a line of commercial water purifiers for use in offices, restaurants, clinics, and other businesses. The corporation had four subsidiaries and two associate companies under its umbrella on March 31, 2019. The Economic Times group named Blue Star one of the Best Brands of 2019. The overall investment in R&D in FY20 increased significantly from Rs 51 crore in FY19 to Rs 68 crore in FY20. OPEX investment accounted for Rs 46 crore of the total investment throughout the year, while CAPEX expenditure accounted for Rs 22 crore.
Blue Star in COVID-19 crises
The development of the COVID-19 pandemic in India and the prolongation of the strict statewide lockdown occurred during the peak selling season for the goods companies in April and May and had a major effect on revenue in the first quarter of FY21. The Company's Carried Forward Order Book was Rs 2952.42 crore on March 31, 2021, compared to Rs 2946.59 crore on March 31, 2020.