NSE: BLUESTARCO
Blue Star commenced operations in 1943 and has been operating in India for 80 years. It manufactures air purifiers, air coolers, water purifiers, cold storage, and specialty products. With a market share of 13.75% in FY24 and aiming towards a 15% share in FY25. It is the country’s largest after-sales service provider for air conditioning and commercial refrigeration products. {1}
The company operates through 3 business segments: Electromechanical Projects (EMP) and Commercial Air Conditioning Systems, Unitary Cooling Products (UCP), and Electronics & Industrial Systems (EIS), which contributed 62.8%, 33.7%, and 3.5% to its FY24 revenue, respectively. {2}
Its other businesses include marketing, solution design, and maintenance of imported professional electronic equipment and services and industrial products and systems, under the aegis of Blue Star Engineering & Electronics Limited (Blue Star E&E), besides, Blue Star E&E also provides medical diagnostic equipment refurbishment solutions. {2}
Expansive Network and Global Reach of Blue Star Limited:
The company has a strong presence in India, with over 30 offices, 7 modern manufacturing facilities, and over 3,000 employees. In FY24, it operated over 10,000 retail outlets and managed 2,100 service centers in over 900 towns. {2}
The company also has a global footprint, exporting Heating, Ventilation, Air Conditioning, and Refrigeration (HVACR) products and solutions to 18 countries, contributing 6% of total revenuein FY24. It plans to expand its presence in the USA and Europe in FY25. {3}
Subsidiaries of Blue Star Ltd. & their Financial performances in FY24:
Blue Star Engineering & Electronics Ltd. and Blue Star Climatech Ltd. posted net profits of ₹46.37 crores and ₹22.72 crores, respectively, along with Blue Star International FZCO, earning ₹10.27 crores in FY24. However, subsidiaries such as Blue Star Systems and Solutions LLC (UAE), Blue Star North America Inc., Blue Star Europe B.V., and Blue Star Innovation Japan LLC incurred net losses between ₹2.92 crores and ₹10.12 crores in FY24. The Ugandan subsidiary, Blue Star Air Conditioning & Refrigeration (U) Ltd., is yet to begin operations. {2}
Streamlining Global Ventures with Strategic Exit from Oman:
Company’s joint ventures include Blue Star Qatar WLL, treated as a subsidiary due to management control, and Blue Star M&E Engineering Sdn Bhd (Malaysia), which reported a net profit of ₹0.15 crores in FY24. The company is exiting Blue Star Oman Electro-Mechanical Co. LLC (Oman) due to disputes, with arbitration proceedings underway and regulatory approval pending. The financials of all joint ventures are consolidated into Blue Star Limited’s statements. {2}