Central airconditioning and commercial refrigeration major, Blue Star Limited is planning to strengthen its Airconditioning Projects business through the strategic acquisition of the businesses of Naseer Electricals Private Limited, a leading Electrical Contracting firm as a going concern. With this move, Blue Star, which is a leader in central airconditoning in the country, will also be in a position to deliver integrated Mechanical, Electrical & Plumbing (MEP) contracting projects for the commercial building and infrastructure segments.
The growing Indian economy and the construction boom offer attractive business opportunities in the MEP contracting space. Moreover, many customers of Blue Star are seeking Electrical Contracting services from the Company. While Blue Star will continue to focus on its core businesses of airconditioning and commercial refrigeration as a manufacturer, contractor and service provider, it intends to further enhance its capabilities in the MEP space by entering Electrical Contracting through this transaction.
Naseer Electricals Private Limited, headquartered at Bangalore, is an Electrical Contracting firm with a turnover of Rs 107 crore (FY07) and a strong presence in South India. It is founded by Mr A S Dawood, who is currently the Managing Director. Naseer Electricals enjoys an exceptional reputation as a leading player in the IT, ITES, Infrastructure and Retail segments.
The Board of Directors of Blue Star Limited in its meeting held on December 5, 2007 has authorized a four-member committee headed by Mr Suneel M Advani, Vice Chairman and Managing Director, to finalize the Definitive Business Purchase Agreement, and conclude the transaction on or before December 31, 2007 (Closing Date) subject to final Due Diligence. The details of the transaction will be made available after the Closing Date.
It may be recalled that the Blue Star had reported a Net Profit of Rs 71.18 crore on a Total Income of Rs 1607 crore for the year ended March 31, 2007.
For the half year ending September 30, 2007, Total Income stood at Rs 1010.91 crores registering a growth of 47% over the corresponding period last year. Net Profit grew 166% to Rs 68.29 crore. Earnings per Share increased to Rs 7.59 from Rs 2.86 (Face value of Rs 2.00 per share).