Central airconditioning and commercial refrigeration major, Blue Star Limited has completed the strategic acquisition of the businesses of Naseer Electricals Private Limited, a leading Electrical Contracting firm as a going concern for a consideration upto Rs 42 crore which includes upfront payment, debt and escrow amount payable on fulfillment of certain conditions. This move will enable Blue Star, which is the leader in central airconditoning in the country, to deliver integrated Mechanical, Electrical & Plumbing (MEP) contracting projects for the commercial building and infrastructure segments.
The growing Indian economy and the construction boom, specifically in the infrastructure, hospitality, healthcare, IT and ITES segments, offer attractive business opportunities in the MEP contracting space. Many customers of Blue Star have been seeking Electrical Contracting services from the Company. While Blue Star will continue to focus on its core businesses of airconditioning and commercial refrigeration as manufacturer, contractor and service provider, it will enhance its capabilities in the MEP space by entering Electrical Contracting through this transaction.
Naseer Electricals Private Limited
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. Founded by Mr A S Dawood, the Managing Director, Naseer Electricals enjoys an exceptional reputation in terms of customer satisfaction. The current order book is approximately Rs 100 crore.
Mr A S Dawood Retained As Corporate Advisor
Mr A S Dawood has been retained by Blue Star Limited as Corporate Advisor for the new entity.
With effect from the Closing Date (January 24, 2008), the businesses of Naseer Electricals including the pending orders, assets and liabilities stand transferred to Blue Star Limited. All 117 permanent employees of Naseer Electricals have been employed by Blue Star Limited.
Financial Performance Of Blue Star
It may be recalled that Blue Star 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 9 months ended December 31, 2007, Blue Star registered a Total Income of Rs 1525.90 crore, 44% higher than last year. Net Profit grew 179% to Rs 103.73 crore, while Earnings per share (face value of Rs 2.00 per share) jumped from Rs 4.13 to Rs 11.53 in the same period. The carry-forward order book position as on December 31, 2007 stood at Rs 1072 crore as against Rs 831 crore on December 31, 2006.