| Type | Description | Contributor | Date |
|---|---|---|---|
 | Post created | Pocketful Team | Jun-20-25 |
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- Blog
- voltas vs blue star
Voltas vs Blue Star: Which is Better?
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With the increasing temperature during the summer season, everyone seems to be rushing to purchase a new air conditioner. While global warming is a serious concern, this growing demand for air conditioners also presents an opportunity for innovation and growth within the air conditioning industry. Companies specializing in cooling technologies are now in a position to develop more energy-efficient, eco-friendly solutions.
In this blog, we will compare Voltas Limited and Blue Star Limited, the top players in the Indian Air Conditioning industry.
Voltas Limited Overview
Voltas was incorporated in 1954 as a result of a collaboration between Tata Sons and Volkart Brothers. By the year 1960, it had established itself as a prominent player in the Indian refrigeration and air conditioning industry. The company has expanded its production capacity and ventured into Middle Eastern countries. It has a strong presence in Southeast Asia and Africa. The company has executed various large projects in the UAE, Qatar, Oman, and Saudi Arabia. The headquarters of the company are situated in Mumbai.
Business Model of Voltas Limited
There are major business segments of Voltas as listed below:
- Cooling Products: The company offers cooling solutions for residential, commercial and industrial use. Their product portfolio includes air conditioners, water and air purifiers, and commercial freezers.
- Electro and Mechanical Projects: Voltas has executed various electrical and plumbing projects in India and other countries. They have provided services to Burj Khalifa and Ferrari World.
- Water Treatment: They also provide pumps and other services related to water treatment.
Read Also: Voltas Case Study: Business Model And Key Insights
Blue Star Limited Overview
Blue Star was established in 1943 by Mohan T. Advani. Initially, it operated as a reconditioning company. Later, the company ventured into the manufacturing of ice candy machines and bottle coolers. In the late 2000s, the company expanded into electrical, plumbing and fire-fighting contracting businesses. In 2017, the company formed a wholly owned subsidiary called Blue Star International FZCO to manage global sales. The company has seven manufacturing plants across India. Their products, like room air conditioners, water purifiers, air purifiers, commercial refrigeration, etc, have become a household name. The company has its headquarters situated in Mumbai.
Business Model of Blue Star Limited
Blue Star has primarily three business segments:
- Commercial Air Conditioning System: A significant portion of the company’s revenue comes from providing air conditioning solutions to large-scale projects. It offers central AC services, ducting systems and MEP (Mechanical, Electrical, Plumbing and Fire Fighting Solution) services for various buildings, factories etc.
- Cooling Products: It also manufactures products such as inverter AC, split AC, Window AC, deep freezer, etc.
- Electronic and Industrial Systems: Blue Star provides marketing, distribution, and servicing of imported professional electronics and industrial equipment through its wholly-owned subsidiary, Blue Star Engineering & Electronics Ltd.
Read Also: Bluestar Case Study: Products, Financials, and SWOT Analysis
Market Information
| Particulars | Voltas Limited | Blue Star Limited |
|---|---|---|
| Current Market Price (INR) | 1,268 | 1,604 |
| Market Capitalisation (In Crores) | 41,956 | 32,981 |
| 52 Week High (INR) | 1,946 | 2,420 |
| 52 Week Low (INR) | 1,135 | 1,521 |
| Book Value (INR | 197 | 149 |
| P/E Ratio (x) | 50.9 | 56.7 |
Performance Comparison
| Return | Voltas Limited | Blue Star Limited |
|---|---|---|
| 1 Month | 2.09% | -0.47% |
| 6 Months | -24.97% | -18.95% |
| 1 Year | -14.74% | -3.94% |
| 5 Years | 130.60% | 534.28% |
Financial Statement Comparison
Income Statement Comparison
| Particulars | Voltas Limited | Blue Star Limited |
|---|---|---|
| Total Revenue | 15,737 | 12,042 |
| Total Expenses | 14,358 | 11,207 |
| EBIT | 1,378 | 835 |
| Profit After Tax | 960 | 592 |
Balance Sheet Comparison
| Particulars | Voltas Limited | Blue Star Limited |
|---|---|---|
| Reserves & Surplus | 6,480 | 3,023 |
| Current Liabilities | 6,013 | 4,944 |
| Current Assets | 8,877 | 6,312 |
| Other Assets | 3,290 | 285 |
Cash Flow Statement
| Particulars | Voltas Limited | Blue Star Limited |
|---|---|---|
| Cash Flow from Operating Activities | -224 | 688 |
| Cash Flow from Investing Activities | 157 | -463 |
| Cash Flow from Financing Activities | -99 | -162 |
Read Also: SAIL Vs Tata Steel: Which is Better?
Key Performance Ratios
| Particulars | Voltas Limited | Blue Star Limited |
|---|---|---|
| Operating Profit Margin (%) | 8.94 | 6.87 |
| Net Profit Margin (%) | 6.23 | 4.95 |
| ROE (%) | 12.91 | 19.28 |
| ROCE (%) | 19.31 | 24.82 |
| Debt to Equity (x) | 0.13 | 0.07 |
Future Plan of Voltas Limited
To expand its business operations, the company is planning to expand its product portfolio by providing efficient and eco-friendly air cooling systems. The company has recently launched the appliances under the Voltas Beko brand name to accelerate its growth in the home appliance segment. The company is also planning to expand its operations in the Middle East and Africa.
Future Plan of Blue Star Limited
To become a leader in air conditioning and the commercial segment, the company is spending a huge amount on R&D to introduce innovative products. The company is planning to invest a huge sum of money to establish manufacturing units in Himachal Pradesh and Mumbai. The company is expected to increase its market share to 14.25% from 13.75 %. The company is also focusing on strengthening its distribution and after-sales services.
Read Also: Bajaj Finserv and Bajaj Finance: Which is Better?
Who is Better: Voltas Limited or Blue Star Limited?
Both companies have their strengths and weaknesses. Voltas is supported by the Tata Group brand and has a competitive edge in residential AC solutions. It is considered a top player in terms of volume. Voltas has also provided their cooling equipment in Burj Khalifa, and other top commercial and residential buildings. On the other hand, Blue Star offers a more diversified product range in the commercial segment, and it has a significant presence in the commercial sector. It provides solutions like HVAC, MEP, etc. It is difficult to say which one is better as it depends on the company’s fundamentals, future financial performance and investor’s risk profile. You are required to analyse both companies’ financial statements thoroughly before making any investment decision or consult a financial advisor to make an informed investment decision.
Read Also: Listed AC Manufacturing Companies in India
Conclusion
On a concluding note, both Voltas and Blue Star are prominent players in the Indian air conditioning industry. Voltas has partnered with Beko to offer refrigerators, washing machines and other household items, thereby strengthening their market position. On the other hand, Blue Star is primarily focusing on providing innovative cooling solutions. Both companies are aggressively expanding their business operations by providing a wide range of cooling solutions. However, before investing in any of these companies, it is advisable to consult your investment advisor and consider your risk profile.
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Frequently Asked Questions (FAQs)
Which is the older company, Blue Star or Voltas?
Blue Star is the older company as it was founded in 1943, whereas Voltas was established in 1954.
Which companies are major competitors for both Voltas and Blue Star?
Both companies face intense competition from various companies such as LG, Daikin, Hitachi, Samsung, Godrej, etc.
Which of Blue Star and Voltas is the bigger company?
Based on market capitalisation, Voltas is the bigger company.
Is Voltas a part of the Tata Group?
Yes, Voltas Limited is a part of the Tata Group, established due to the collaboration between Tata Sons and Volkart Brothers.
Which company has the higher FII holding among Voltas Limited and Blue Star Limited?
As of 31st March 2025, Voltas Limited has a higher FII holding of 21.96% compared to 16.94% in Blue Star Limited.
Disclaimer
The securities, funds, and strategies discussed in this blog are provided for informational purposes only. They do not represent endorsements or recommendations. Investors should conduct their own research and seek professional advice before making any investment decisions.
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