Market Share Air Conditoner

18 21
3
4
6
21
6

10
11

LG electronics Voltas samsung Panasonic Hitachi Home

Bluestar Carrier aircon whirlpool of India others

Central Air Conditioning

14

9 38

13
17

Bluestar Voltas ETA Thermax carrier aircon others

 Ducted A.C

10
7 33

21

29

Bluestar Carrier Voltas Amtex Others

Mini Split

3 1
9

9
42

14

22

carrier voltas Amtrex bluestar Videocon Godrej Others

 Demand Room Acs
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Demand Room Acs

2.1 Distribution Channel Analysis

Blue Star is India's leading air conditioning and commercial refrigeration company, with an
annual revenue of over 4400 crore (over US$ 681 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.

Blue Star has also recently forayed into the residential water purifiers business with a stylish
and differentiated range including Indias 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 specialised industrial projects.

Blue star caters market through various channels.

For large industrial and comfort conditioning projects (exceeding 5 crores) company
uses its own staff.
For large and medium project company uses its own staff or system dealer network
For medium & small office-space company uses system dealer network/ well trained
dealers
For window & split air conditioners company uses widespread dealer network
For commercial refrigeration company follows similar process as for ACs
2.1.1 Practical Channel Conflicts

1. Blue Star dealer in Rohtak, Haryana (Only 1 Dealer) often face horizontal channel conflicts.
a. They have to compete with local retailers who buys ACs and other unitary products
from the dealer at nearby district such as Gurgaon or Delhi and sell it at cheaper
prices to customers.
b. This leads to the problem of undercutting
c. Undercutting more often than not results in companys profit, as it results in more
sell.
d. Blue Star already have a policy in place to handle the problem of undercutting in
case the dealer or direct retailer raise problem of undercutting. They have guideline
of restricting dealers to their own geography, then to cannibalise neighbour dealers.

2. Blue Star also faces multichannel conflict i.e offline channel conflict with online third party
marketplace. This conflict increases during festive seasons.

2.1.2 Manufacturing, R&D and Offices

Blue Star has 5 modern manufacturing facilities. Details of each of them as follow:

Manufacturing facility at Dadra and Nagar Haveli (estd 1997) manufactures digital VRF units,
inverter VRF ACs, export market water coolers, ducted split units, ducted packaged air
conditioners (ODUs as well as IDUs) and contract manufacturing products for export market,
among others.
Manufacturing facility at Solan district of Himachal Pradesh (estd 2005) is a highly
productive, automated and flexible unit that manufactures outdoor units of spilt air
conditioners coupled with a fin and tube heat exchangers (FTHX) coil manufacturing setup.
Another manufacturing facility at Himachal Pradesh (estd 2011) is equipped with state-of-
the-art manufacturing facilities for water coolers and micro channel heat exchangers
(MCHX). The factory also has a modern sheet metal fabrication unit with Amada punching
and bending machines as well as a foaming plant set up for water coolers.
The manufacturing facility at Wada is designed to be Blue Stars biggest manufacturing
facility.
Manufacturing facility at Ahmedabad manufactures deep freezers with a high level of
automation on the assembly line, sheet metal fabrication line as well as in foaming setup.
2 modern plants at Samba, Jammu and Sri City, Andhra Pradesh in the offering

The R&D division has a metric structure, which is followed by most such centres of repute across the
world. Research projects are undertaken on an ongoing basis to study and imbibe emerging
technologies to prepare ground for future requisites. The main drivers of the projects that the
company undertakes are advanced technologies, regulatory requirements, differentiation and
creation of unique value propositions with an aim to increase market share and profitability. The
R&D division caters to local and global businesses as well as designs products as an original design
manufacturer (ODM) for several international brands. R&D is an integral part of the products
business for Blue Star, and the company will continue to systematically invest towards developing
capital equipment and human resources in this important domain.

Blue Star manages its business and sales with the help of Corporate headquarter at Mumbai. Firm
has 2 Divisional Head quarter situated at Chennai and Mumbai. The presence of Divisional
headquarter at Chennai reemphasize the importance of southern part of country in the business of
Blue Star. Southern part contribute to nearly 50% of total sales for Blue Star. Divisional Head quarter
is supported by 4 regional head quarter, 1 at each metro city. Apart from 5 manufacturing facilities,
company has 25 sales and service offices nationwide. Blue Star also has 5 International business
Offices. Blue star is present in 19 international markets in Middle East, Africa and South Asia.

Blue Star has its offering divided into 3 segments namely:

Electro-Mechanical Projects and Packaged air conditioning systems

o Electro mechanical projects:
Design, installation, commissioning and maintenance of large central air
conditioning plants
Designing and execution of electrical, plumbing and fire-fighting contracting
projects
Execution of turnkey industrial projects

o Central AC Projects:
Significant market share in segments such as Industrial, Infrastructure,
Metro, Power, Hospitality, Education, IT/ITeS, Retail and Healthcare
o Packaged air conditioning solution:
Driven by segments such as offices, education, industrial, showrooms,
healthcare, hospitality, banquet halls and retail
VRF systems with Inverter as well as Digital technology
o Central AC Products:
Highly efficient centrifugal chillers
AHRI-certified screw chillers
Flexible and energy-efficient scroll chillers
Air cooled and water cooled variants
o After sales Services
o International Business
Unitary Products:
o Room Air Conditioners
Products available in 3800 outlets in more than 650 locations across the
country
o Commercial Refrigeration Products
o Water Purifiers
Professional Electronics & Industrial Systems
o Managed by the Companys wholly owned subsidiary, Blue Star Engineering &
Electronics Ltd