Blue Star proposes an acquisition of DSGupta Construction
with long standing relationships andimpressive credentials in segmentssuch as hotels, hospitals, educationaletc. It has also executed projects for several green buildings.The plumbing and fire fighting con-tracting skills were being developed in-house. However, the Companythought it prudent to acquire these ca- pabilities inorganically through a stra-tegic acquisition, in order to leveragethe growth opportunities available.With this acquisition, not only will theCompany be in a position to aggres-sively pursue integrated MEP busi-ness, but will also bid for stand alonecontracting projects by cross-sellingits services to its existing air condi-tioning and electrical contracting cus-tomers. In fact, in several of the stand-alone air conditioning jobs that BlueStar has executed in the past, D SGupta Construction has been the plumbing and fire fighting contractor.This is Blue Stars effort to accommo-date Backward integration in their functioning.
Central air conditioning and commer-cial refrigeration major, Blue Star Limited intends to strengthen itsElectro Mechanical Projects businessthrough the strategic acquisition of the businesses of D S Gupta Con-struction Pvt Ltd, the largest inde- pendent plumbing and fire fightingcontracting company in India, as agoing concern. This move will fortify
an important pillar in Blue Star’s in-
tegrated Mechanical, Electrical,Plumbing & Fire fighting (MEP)contracting offering for its commer-cial and residential real estate cus-tomers. The promoters of D S GuptaConstruction will continue to managethe business for the foreseeable fu-ture.About D S Gupta ConstructionD S Gupta Construction Pvt Ltd isheadquartered in Mumbai with aturnover of Rs 130 crore in FY10.Established over two decades ago, ithas pan India operations and is re- puted for its quality of work andtimely execution. It has a large pool of skilled manpower coupled
The promoters of D S Gupta Construction will continue to manage the business even after the acquisition.
By Chinnu and Praveen
, 2010 (Proposed)
Blue Star Ltd.
D S Gupta Construction Pvt Ltd
To strengthen the company businesscommitments for customers looking for integrated suppliers.
“Money in an organization always faces a unique paradox: You want to earn more alwayswithout actually spending it”
Q UO T E- U NQ UO T E
“T he pro po sed acq ui-
sition will f orti f y an im portant pillar in the
com pan y‟ s inte grated
mechanical, electrical, pl umbin g & f ire f i ghtin g ( M E P ) contractin g o f -
f erin g s”, said a senior
com pan y o f f icial
TRIVIADS Gupta has someleading names as itsclients like The TajGroup, The OberoiGroup, The HolidayInns, The Marriott &The Le
Meridian,The Kamat Group of Hotels, PrestigeGroup, Microsoft,Leela Hotel, IndianSchool of Business.