The board of Blue Star Ltd, an air conditioning & commercial refrigeration company, has approved a plan to acquire the business of plumbing contracting firm D S Gupta Construction Pvt Ltd for an undisclosed sum. The move is part of the company’s strategy to strengthen its presence in electro mechanical projects business.
Following this deal, Blue Star will be able to deliver integrated services in mechanical, electrical and plumbing (MEP) solution for projects in commercial building and infrastructure space, it said in a statement. The transaction is likely to be concluded by July 15 this year.
D S Gupta Construction claims to be one of India’s largest independent plumbing and fire fighting construction company. The Mumbai-based company posted a turnover of Rs 130 crore in the financial year ended by March 31, 2010. It has a pan-India presence with operations across hotels, hospitals, educational institutions, IT/ITES parks, and residential and commercial buildings. Some of its concluded projects include Hyderabad international airport, Wipro office in Gurgaon, The Leela hotel in Mumbai and UB City in Bangalore, added the statement.
Blue Star earlier acquired Naseer Electricals to add electrical contracting capabilities in its fold in 2008. It says, the acquisition of D S Gupta Construction will help it to bid for standalone plumbing and firefighting contracting projects by cross-selling its services to its existing air conditioning and electrical contracting customers, besides aggressively pursuing integrated MEP business.
The shares of Blue Star were traded at Rs 403.65, down by Rs 1.55 or 0.38% at 3:50 pm in the BSE today. The net sales and net profit of the company were Rs 2574.04 crore and Rs 180.29 crore, respectively, in the last fiscal.
