COMPANY PROFILE

 Blue Star is India's leading air conditioning and commercial refrigeration company,
with an annual revenue of over ₹3500 crores (over US$ 510 million), a network of 35
offices, 5 modern manufacturing facilities, 2700 employees, 2200 dealers and 600
retailers. Blue Star's integrated business model of a manufacturer, contractor and
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.
 The Company fulfills the cooling requirements of a large number of corporate,
commercial as well as residential customers. Blue Star has also recently forayed into
the residential water purifiers business with a stylish and differentiated range
including India’s first RO+UV Hot & Cold water purifier; as well as the air purifiers
and air coolers businesses. 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 specialized industrial projects.

VALUES AND BELIEFS

• Be a company that is a pleasure to do business with.

• Continuously improve shareholder value.
• Win our people’s hearts and minds.
• Encourage learning, experimentation and innovation in what we do.
• Place the Company’s interest above one’s own.
• Conduct business with personal integrity and ethics.
• Work in a boundary-less manner between various functions to provide the best
solutions to customers.
• Treat business partners as respected members of our organization.
• Ensure high standards of corporate governance.
• Be a good corporate citizen.

COMPANY VISION

To Dream, To Strive, To Care and above all, to be the best in everything we do.
ORGANIZATION STRUCTURE

Through this structure company focuses on basically below style of conduct.

 Focus on people development with emphasis on technical skills.

 Training in soft skills.
 ‘The Blue Star Way’ – The program is intended to create an awareness of, and
strengthen the Blue Star way of working.
 360 degree feedback

GUIDING POLICIES

 Code of Conduct
 Whistle Blower Policy
 Policy for Transactions with Related Parties
 Code of Conduct for Insider Trading
  Policy for Determining Material Subsidiaries
 Policy On Criteria for Determining Materiality of Events
 Corporate Safety Policy
 E-Waste Management Policy
 RoHS Compliance
 CSR Policy and Roadmap
 Blue Star Affirmative Action Code of Conduct

MILESTONES

Year Event

2015 Blue Star enters into JV with W J Towell & Co LLC; forms Blue Star Oman Electro-Mechanical Company LLC

2015 Total Income crosses Rs 3000 crores

2015 The PE&IS business of the Company transferred to a separate subsidiary called Blue Star Engineering & E

in April 2015.

2013 Blue Star celebrates its 70th Anniversary.

2012 Blue Star celebrates Birth Centennial of Founder Chairman, Mohan T Advani.

2011 Blue Star forays into the residential air conditioning segment.

2010 Blue Star acquires D S Gupta Construction, the largest independent Indian plumbing and fire-fighting co

Fortifies the Company's integrated Mechanical, Electrical, Plumbing & Fire fighting (MEP) contracting off

2008 Total Income crosses Rs 2000 crores

2008 Blue Star powers into Building Electrification. Acquires Naseer Electricals, a leading Electrical Contractor

2007 Blue Star sets up its fifth factory at Wada, Thane District

2006 Blue Star opts for a 5 for 1 stock split

2006 Total Income crosses the Rs 1000 crores mark

2005 Blue Star sets up new factory at Kala Amb in Himachal Pradesh

2003 Blue Star exits Yokogawa JV

2001 Total Income crosses 500 crores. Export of air conditioning products begins

2000 International Software business spun off to form Blue Star Infotech, listed on stock exchanges

1999 Blue Star exits from Industrial Projects business

1998 Major thrust on dealerisation and brand building begins

1997 Dadra Plant inaugurated

1995 Blue Star exits from HP India JV

1993 Formation of Arab Malaysian Blue Star JV in Malaysia

1992 Blue Star exits from Motorola JV

1992 Total Income crosses Rs 200 crores

1990 Gandhinagar factory closes

1989 JV with Hewlett-Packard and Motorola

1988 Assembly of personal computers under the brand name ‘Quantum’ begins

1988 Manufacturing collaboration with Mitsubishi

1988 Blue Star becomes India’s largest central air conditioning company

1987 Gandhinagar factory set up for EPABX systems

1987 Yokogawa Blue Star JV formed

1986 Total Income crosses Rs 100 crores

1985 Manufacture of centrifugal packaged chillers commences at Thane Plant

1984 York technology collaboration begins

1983 International Software Division inaugurated in Seepz

1980-86 Major AC and R projects executed in the Middle East

1980 Bharuch Factory set up

1978 Industrial Division commences activity

1977 Middle East thrust begins. Joint Venture (JV) with Al Shirawi in Dubai

1977 Hitachi Medical Equipment distributorship begins

1974 Water Cooler manufacturing license granted to Yusuf Alghanim, Kuwait

1972 First skyscrapers of Mumbai – Air India Building, Express Towers and Oberoi Hotel set-up – all

air conditioned by Blue Star

1972 Total Income crosses Rs 10 crores. Employment crosses 2,000

1970 Hewlett- Packard distributorship commences

1969 Factory moves from Colaba in Mumbai to Thane

1965 Techniglas Pvt Ltd set up to manufacture insulation material

1964 Total employment crosses 1,000

1962 GDR Machine Tools distributorship begins

1960 Total Income crosses the Rs 1 crore mark

1957 Perkin-Elmer tie-up marks the start of the electronics business. GDR business machines agency commen

1955 GDR Testing machines distributorship begins

1954 Blue Star selected as distributor for Honeywell

1949 Proprietorship converted to Private Limited Companies

1948 Manufacturing of water coolers commences

1947 Worthington selects Blue Star as Indian Partner. Manufacturing of ice candy machines and bottle coolers

Central air conditioning system design and execution begins

1946 Blue Star secures Melchior Armstrong Dessau agency

1943 Mohan T Advani establishes Blue Star Engineering Company as a proprietary firm

MANUFACTURING

At Blue Star, the idea has always been to deliver a world-class customer experience. As an
integral part of this vision, the manufacturing division of the company has to be of global
calibre.

Blue Star's foray into manufacturing was a modest effort at producing ice candy machines in
the 1940s, at first from a small office in Forbes Street in Colaba, Mumbai. It was only in the mid-
1960s that Mohan T Advani expanded Blue Star's manufacturing base by buying a factory in
Thane, at that time a distant suburb in Mumbai.

In the late 1990s with the software boom driving the economy, investments in the
manufacturing sector were dwindling. Manufacturing facilities started to become an unviable
proposition. As a result, many manufacturing units had to be closed down. However Blue Star’s
management was convinced about the vitality of manufacturing to drive growth in the value
chain and for being successful in the longer run.

A new and exciting chapter began with the inauguration of a world-class factory at Dadra in
1997. This unit was equipped with state-of-the-art technologies adhering to high quality
standards and manufacturing processes in consultation with Rheem, USA.

After the success of the Dadra factory, the company was successfully able to replicate this
manufacturing philosophy and attitude in other factories, namely at Himachal Pradesh, Wada
and Ahmedabad.

The two fundamental transformations of Blue Star's manufacturing capabilities took place with
the improvement of operational efficiencies and quality, resulting in competitiveness in terms
of price and delivery. Recently, the Wada facility has also added new technology products such
as turbo core chillers and screw chillers with falling film technology, which were initially
developed in the erstwhile Thane factory and subsequently shifted to the Wada unit.

Blue Star's modern manufacturing facilities along with a competent product development
team, the country's most advanced AHRI-certified chiller test lab, significant support from
original equipment manufacturers and a good footprint in the export market has given Blue
Star an edge over it’s competitors in the field of manufacturing.

OTHER BUSINESSES

 Blue Star's other businesses include marketing and maintenance of imported

professional electronics and industrial products and systems, which is handled by a
wholly owned subsidiary of the Company called Blue Star Engineering & Electronics
Ltd.
 Blue Star has business alliances with world-renowned technology leaders such as
Rheem Mfg Co, USA; Hitachi Medical Corporation, Japan; Danfoss, Denmark; Bitzer,
Germany; Emerson, USA; Aeroflex, USA; Kitz, Japan; and many others, to offer
superior products and solutions to customers.
 The Company has manufacturing facilities at Dadra, Himachal, Wada and
Ahmedabad, which use modern, state-of-the-art manufacturing equipment to
ensure that the products have consistent quality and reliability. The Company has a
manufacturing footprint of about 1 lakh sq m, manufacturing over 300 models
across 25 product lines. The Company's mainstay of product development and R&D
has been energy efficiency, coupled with eco-friendly and sustainable products.

SOME BUSINESS SEGMENTS

In accordance with the nature of products and markets, business drivers, and
competitive positioning, the lines of business of Blue Star can be segmented as
follows:
 Electro-Mechanical Projects and Packaged Air Conditioning Systems.
o This business segment covers the design, manufacturing, installation,
commissioning and maintenance of central air conditioning plants,
packaged/ducted systems and variable refrigerant flow (VRF) systems, as
well as contracting services in electrification, plumbing and fire-fighting.
After-sales services such as revamp, retrofit and upgrades also form part of
this segment. Blue Star is the largest after-sales AC&R service provider in
India, maintaining around 2 million TR of equipment. Its 24x7 call center
handles over 1 million service calls a year. Blue Star is present right from
understanding the customer requirement to hassle-free project execution
and committed after-sales service i.e. throughout the life cycle of the air
 conditioning system.

 Unitary Products
o Blue Star offers a wide variety of stylish, contemporary and energy-efficient
room air conditioners for both residential as well as commercial applications;
manufactures and markets a comprehensive range of commercial
refrigeration products and cold chain equipment; water purifiers; air
purifiers; and air coolers.

 Professional Electronics and Industrial Systems

o For over six decades, Blue Star has been the exclusive distributor in India for
many internationally renowned manufacturers of hi-tech professional
electronic equipment and services, as well as industrial products and
systems. It has carved out profitable niches for itself in most of the
specialised markets it operates in, such as such as Industrial Products and
Systems, Non Destructive Testing, Testing Machines, Data Communication
Products & Services, Testing and Measuring Instruments and Healthcare
Systems. This business is managed by the Company's wholly owned
subsidiary, Blue Star Engineering & Electronics.

Some QUICK FACTS to remember: -

1. Stock Price: - BLUESTARCO(NSE)- INR 522.05 +1.00(+0.19%)
2. TAGLINE: - ‘Nobody Cools Better’
3. Annual revenue- Over INR 3700 Crores
4. Number of Offices- 35
5. Number of Modern Manufacturing Facilities- 5
6. Number of Employees- 2500
7. Number of Dealers- 2200
8. Number of Retailers- 500
9. Corporate Headquarter- Mumbai
10. In 1949, the Company was Incorporated on 20th January, at Mumbai. The
Company manufacture commercial refrigeration equipment including water cooler
beverage coolers, bulk ice markets, deep freezers,pre-fabricated walk-in-coolers,
packaged air-conditioners and components for large central refrigeration and
air-conditioning plants. The Company also act as distributors for
various products.

11. Organization structure: - They follow vertical integration.

12. The room air conditioners market in India has grown by about 20% in terms of value
during this fiscal so far, while Blue Star has outperformed the market growing 30%,
thereby increasing its market share. Blue Star is now well entrenched in the residential
segment with an overall 9% market share in room ACs.
List of Top (Leading) Consumer Durable Brands- COMPETITORS

1. TITAN
2. WHIRLPOOL
3. SYMPHONY
4. VIDEOCON
5. BAJAJ ELECTRICALS
6. VIP INDUSTRIES

PRODUCTS OFFERED BY THE COMPANY

1. ROOM AIR CONDITIONERS – A range of products

2. WATER PURIFIERS – A range of products
3. AIR PURIFIERS- Objective (Goodbye to pollution. Hello to pure air.)
4. AIR COOLERS- In three volumes (75 Litres, 55 Litres and 27 Litres)
5. WATER COOLERS- Water coolers, water coolers with inbuilt aquaguard RO purification,
water coolers with inbuilt aquaguard UV purification
6. CENTRAL AIR CONDITIONING- Every third commercial building in India has a Blue Star
product installed inside. This is the immense scale and reach of India's leading air
conditioning and commercial refrigeration company. It comes in four types- Chillers, VRF
Systems, Ducted Systems and Others
7. COMMERCIAL REFRIGERATION- Freezers, Ice coolers, Bottled water dispensers, Kitchen
Refrigeration, Medical Refrigeration, Ice Machines
8. COLD STORAGE- Modular Cold rooms, Banana Ripening Cold rooms, refrigeration units,
Puf insulated panels

9. SPECIALITY PRODUCTS- Mortuary chambers, Hot water generator

THE BLUE STARSTRENGTH – INDUSTRIAL COOLING

when sophisticated technology is required, Blue Star's expertise in industrial and comfort air-
conditioning is clearly ahead.
75% of all man-made fiber plants in India are air-conditioned by Blue Star: Reliance, DCL,
Raymonds, Shriram, Ceat, Sanghi, Orkay. A majority of software companies, hotels, airports,
cinema halls and hospitals all over India have been air-conditioned by us. Blue Star has made
engineering excellence a way of life and has been acclaimed by renowned consultants like
Chemtex, UDHE, Tata Consultants, Du Pont, Mecon,Engineers India, Humphreys & Glasgow and
Davy Powergas.

GROWTH PROSPECT OF CONSUMER DURABLES INDUSTRY IN INDIA

With the continuous inflow of disposable income and advancement of technology, the demand
for varied consumer durable goods is witnessing a relentless upwards movement in India. This
in turn is leading to a strong competition among different consumer durable brands as the price
gap between the same consumer goods of different companies is narrowing. These goods are
becoming cheaper day by day. Consumer durables’ market is expected to go twofold at 14.8
percent CAGR to US$ 12.5 billion in the 2015-16 fiscal year from US$ 6.3 billion in the 2010-11
fiscal year.

CAREERS AT BLUE STAR

 There are well designed induction and technical orientation programmes. There is a
Corporate Technical Training Organisation which delivers a variety of technical training
programmes for the AC&R business. Engineers who join the Electronics Division get a
chance to go abroad for training with the Principals. The Corporate HR runs a menu of
non-technical soft skills training programmes such as Business Communication Skills and
Business Etiquette.
 The Company has many well designed, time tested HR practices such as setting the
performance objectives at the beginning of the year, reviewing employee performance
every year through an annual appraisal system and an annual compensation review
based on market surveys. In addition to a market aligned salary structure, Blue Star also
has a fairly attractive incentive scheme wherein, the employee gets an incentive based
on his department’s performance coupled with his own performance rating.
 Typically, graduate engineers can look forward to entering real managerial grades within
4 to 5 years. Once an employee enters the managerial grade, he is exposed to a variety
of management education programmes including some programmes at IIM,
Ahmedabad.
 Last, but not the least, Blue Star rightly boasts of the Blue Star Way, which is founded on
a set of values and beliefs which have evolved over time. These beliefs have made Blue
Star a highly respected, secular organisation. The Company has an excellent track record
of employees working for many decades with the Company. In today’s high attrition
market, the Company continues to enjoy the privilege of retaining many of its
employees for many decades, thanks to its positive work culture.

Blue Star inducts suitable talent at all levels – Freshers, Mid-Management, and Senior
Management.
Since engineering and technology are at the heart of Blue Star’s delivery, engineers (graduate
as well as diploma) constitute most of the Company’s recruitment. Management degrees may
also have sought after as one goes up the career ladder.
Campus visits are standard practice at Blue Star for recruitments. Blue Star campus recruitment
teams visit top ranking institutes, offering opportunities to competent engineers and
management graduates to participate in any of the following Trainee roles:

 Graduate Engineer Trainees (GETs)

 Post-Graduate Engineer Trainees (PGETs)
 Diploma Engineer Trainees (DETs)
 Management Trainees (MTs)
 B Com Trainees

The selection process at Blue Star is rigorous, wherein candidates who match the Blue Star
value system, and have a strong knowledge base along with the skill to apply concepts, are
sought after. Commitment and a passion for excellence are qualities that are held in high
regard.
Here is a list of the divisions within Blue Star.

 Projects
 Manufacturing
 Air conditioning & refrigeration service group
 Air conditioning and refrigeration products sales group
 Management services
 Blue star engineering & electronics
 International business group (IBG)
IBG has two divisions:
The Global Product Sales Division, to handle all product exports to the Middle East & Africa,
SAARC and ASEAN as well as all OEM equipment sales.
The International Projects Division, to manage international joint ventures in Qatar and
Malaysia as well as all international project enquiries.