hope for a better ready-made market than India. The climate and economy have combined in near-perfect harmony to drive up demand: a mostly sweltering tropical ambience, robust GDP growth, massive new expenditure on infrastructure and increasing disposable incomes among a swelling middle-class have given the air- conditioning industry formidable opportunities for growth and consolidation. It is estimated that up till at least 2015, the market will grow at a compounded annual growth rate of 21%. Riding on the back of poor market penetration, pegged currently at 3%, the industry is expected to achieve in the next five years what it has scaled in the last 50 (Source: internal estimates). The air-conditioning industry comprises two segments central air-conditioning and room air-conditioners. In 2009/10, the estimated total market size was Rs. 10,750 crore (US$ 2.40 billion) split almost equally down the middle, with the former billing about Rs. 5250 crore (US$ 1.17 billion) and the room air-conditioning business, the balance Rs. 5500 crore (US$ 1.22 billion). In addition, commercial refrigeration is critical to the growth of the cold chain storage and transportation business which caters to perishable commodities such as dairy and marine products and fruits and vegetables. In this exciting market of great opportunity, Blue Star is India's largest central air-conditioning and commercial refrigeration company. It has an annual turnover of over Rs. 2500 crore (US$ 560 million), a network of 29 offices, five manufacturing facilities and a motivated work force of 2600 people. Achievements Blue Star is an iconic company that has grown from a modest Rs. 1 crore (now US$ 222,000) in 1960 to more than Rs. 2500 crore (US$ 560 million) in 2010 effectively doubling its turnover every four years. Sustaining this growth rate even through economic down turns has been a noteworthy triumph. As a market leader, Blue Star has steadily enhanced its capabilities beyond cooling. It has entered new territories like plumbing and electrical contracting in order to offer integrated solutions to customers. The brand, not surprisingly, is a preferred partner for most of India's blue chip organisations like Infosys, Future Group, the Aditya Birla Group, HCL Technologies, HSBC, Wipro, Reliance, Airtel, Hindustan Unilever, Microsoft, Hewlett Packard, Intelenet, Caf Coffee Day, IBM, DLF, Glaxo, Raymond, PVR Cinemas, Vodafone, Pizza Hut and McDonalds. The company has been associated with several prestigious and complex projects. It has air-conditioned airports including Aurangabad, Ahmedabad, Trivandrum, Mangalore, Nagpur, Jaipur, Amritsar, Madurai, Dehradun, Raipur and Pune. It is also in the process of air-conditioning the international airport at Mumbai. Its cooling systems operate in underground stations of Delhi Metro, the Parliament House, Rashtrapati Bhavan, South Block, the All India Institute of Medical Sciences (AIIMS) and the Bombay Stock Exchange. History Blue Star Limited came into being in 1943, founded by the late Mohan T Advani. It was a modest three-man operation, engaged in reconditioning of refrigerators and air-conditioners. The 1940s was an extraordinary period. With other imperatives taking precedence, the growth of Blue Star is a fine study in determination, intent and integrity. But so powerful was the motive that in a climate inclement for business, Blue Star flourished. It formed partnerships with internationally recognised companies and began manufacturing water coolers, bottle coolers and ice candy machines in Mumbai. It also began systems design and execution of central air- conditioning projects. In the 1950s the company forayed into the professional electronics business in partnership with Honeywell. In the decade that followed Blue Star central air-conditioning bagged huge orders from the Birla Integral Coach Factory, Chennai and Metal Box, Calcutta. By the end of the decade, Blue Star had set its sights on taking the next big leap. In 1969, as a first step, it went public. This infusion was a critical take-off point. The air- conditioning for all the three skyscrapers planned for Mumbai's commercial hub at Nariman point Oberoi Towers, Air India and Express Towers were bagged by the company. As the orders continued from companies like Raymond, Reliance, VSNL, Garware, to name a few Blue Star signed up a partnership with Hewlett Packard and began offering their products and services in the country. In the mid-1970s, the company ventured overseas, aggressively targeting the Middle East market by setting up a joint venture with Al Shirawi in Dubai. Multi million dollar air-conditioning projects were executed in Syria, Iraq and Saudi Arabia. In the 1980s, Blue Star formed joint ventures with Yokogawa, Hewlett Packard and Motorola. 26 BUSINESS SUPERBRANDS Third BUSINES Superbrands-2010-final 6/1/11 12:19 PM Page 26 It also introduced Copeland in India and began manufacturing centrifugal and reciprocating chillers in technical collaboration with York. From then on, there was no looking back. Now the undisputed market king, Blue Star braced to conquer new market segments such as the IT software industry of which it captured a 60% share. Product Blue Star offers a comprehensive range of air- conditioning products, which include centrifugal chillers, screw chillers, scroll chillers, air handling units, fan coil units, packaged air-conditioners, ducted splits and variable refrigerant flow (VRF) systems. These are in addition to split- window- vertical- and cassette room air-conditioners. The company also offers specialised equipment for telecom, precision control and process applications. Blue Star products distinguish themselves with energy-efficient technology and a host of distinctive features that are backed by robust research and development, a strong understanding of design, superior manufacturing and excellent project execution capabilities. The company also manufactures and markets a comprehensive range of water coolers, bottled water dispensers, deep freezers, cold storages, bottle coolers and ice cube machines that cater to the industrial, commercial and hospitality industries. Recent Developments While Blue Star continued to grow rapidly in its chosen domain it also recognised the value of diversification and the acquisition of skills synchronous with its core business. It was easy to see that increasingly companies were seeking from their air-conditioning vendors expertise in electrical, plumbing and fire fighting systems. The environment was ripe for consolidation and Blue Star launched itself into acquiring these skills. In 2008, the company ventured into the electrical contracting business, offering customers mechanical electrical and plumbing (MEP) services. From a logistical and technological perspective, this move was facilitated by the company's acquisition of Bangalore-based Naseer Electricals Private Limited. Blue Star's new business has since grown from strength to strength and has received a universally favourable customer response. In 2010, encouraged by the Naseer Electricals acquisition, the company strengthened its electro-mechanical projects business through the strategic acquisition of D S Gupta Construction Private Limited, the largest independent plumbing and fire fighting contracting company in India. This move fortified Blue Star's position, placing it amongst the country's most powerful companies in the MEP field. Promotion Blue Star has developed a carefully researched positioning strategy. Its positioning statement is the result of a study that showed decision-makers seeking peace of mind, preferred vendors competent in executing complex assignments. Given this insight, Blue Star zeroed in on the term 'expert.' The proposition that flowed from here Experts in Cooling became a strong corporate differentiator and positioned Blue Star several notches ahead of competitors. This positioning worked equally well in the residential air-conditioning market where consumers appeared to believe that office cooling was superior to home cooling. Since Blue Star had established superiority in the office cooling segment, the proposition of bringing home an 'expert' blended in seamlessly and gave the brand a positioning property that straddled both segments of business. Blue Star's promotion activities include mass media advertising and field marketing. The advertising budget goes primarily to television, print, hoardings and the internet. The company's TV ads are placed on news and niche channels. In print, mainline dailies are the preference. The markets targeted include metros and mini metros. Field marketing activities see the company investing substantially in customer meets, sponsorships of events organised by CII and other trade associations, participation in exhibitions and other on-ground events. Both the mass media and field marketing activities are aligned to the brand value proposition to ensure an integrated 360-degree brand communication. Brand Values The company's projected vision is to ensure that all its employees work in tandem to make Blue Star the preferred engineering and solutions provider in the country. Top-of-mind brand personality traits projected through all communication avenues stress the company's leadership role emanating from confidence, experience, expertise, reassurance and intelligence. More than all this, it is a warm, accessible and caring brand which is simultaneously responsive because of its insight and sensitivity to customer concerns. In today's rapidly changing world Blue Star remains modern and youthful, embraces transformation in the best spirit of growth, reliability and commitment. Ultimately, Blue Star's brand personality revolves around being a friend, an expert with contemporary solutions and a partner-in- progress who understands customer needs. The company's commitment to provide a world-class customer experience apart from remaining an organisation that is a pleasure to do business with is unflagging. It also ensures high standards of corporate governance and is dedicated to being a good corporate citizen. www.bluestarindia.com 27 BUSINESS SUPERBRANDS Blue Star is one of only 50 listed Indian companies which are more than 60 years old Up to a third of all corporate or commercial buildings in the country are air-conditioned by Blue Star In India, Blue Star maintains air-conditioning equipment rated at 2 million tonnes of refrigeration (TR) Blue Star has been in the professional electronics and industrial systems business for more than five decades selling medical equipment, data communication equipment, testing machines, analytical instruments, industrial products and projects and testing and measuring instruments Giant international business houses such as Hewlett Packard, Motorola, Yokogawa and Honeywell were first introduced to India by Blue Star Blue Star was amongst the twenty Indian companies to be featured in Forbes Asia's 200 Best Under a Billion list in 2008 The company has been graded by the Bureau of Energy Efficiency (BEE) at the highest level, amongst energy service companies Blue Star offers complete consultancy for Green Building Certification Blue Star has alliances with the world's most renowned technology leaders: Rheem Manufacturing Company, USA; Hitachi Medical Corporation, Japan; Eaton-Williams, UK; Jeol, Japan; Carel, Italy; Danfoss, Denmark; Bitzer, Germany; Emerson, USA and Packo of Belgium Things you didnt know about Blue Star Third BUSINES Superbrands-2010-final 6/1/11 12:19 PM Page 27