Blue Star's Eureka moment!

Blue Star is a star of sorts today. The stock opened Rs.18 higher at Rs.318 and went on to hit an intra day high at Rs.327. It has come off this high but remains over 3% up at Rs.320 levels.

The stock is up after the company announced that it has entered into a collaboration with Eureka Forbes, to launch a range of water coolers with in-built Aquaguard water purifiers.  This is for the first time that we will have in-built water purifiers for water coolers and this new product will be targeted at educational institutions, hostels, canteens, factories, hospitals and commercial establishments, among others. Both the companies are looking to earn around Rs.150-200 crore from this collaboration.

The company will launch four new models wherein three will have UV purification – targeted at markets with low total dissolved salts (TDS) and one will have RO technology, meant for high-TDS markets.  With capacities ranging from 80 litres to 120 litres, it will be prices at Rs.66,000 to Rs.88,000. Both, Blue Star as well as Eureka, will market this product through their existing marketing networks.