Lakshmi Narayan Mittal Biography

 

The great person Lakshmi Narayana Mittal:

About Lakshmi Narayan Mittal:

Until 1960's, the village Lakshmi Mittal was born into was deprived of basic amenities like electricity, water etc. His family then moved to Calcutta in West Bengal, where his father Mohan Lal Mittal set up a small steel plant. He has two siblings (brothers), Pramod and Vinod Mittal, who run the family business.

Personal Background of Lakshmi Narayan Mittal

In Calcutta, Mittal studied business and accounting at the reputed St. Xavier's College. After classes, he used to work with his father in the family steel mill. He graduated as Bachelor of Commerce in accounting and business with first class distinction. 

He is married to Usha Mittal, who was, then, the daughter of a well settled moneylender. Today, she handles the Indonesian business. 

They have two children, Vanisha and Aditya Mittal, who are members of the Board of Directors of Mittal Steels. Lakshmi is known for spending extravagantly on his family. His daughter's marriage was a five day event, which cost him more than $55 million. 

Virtues

·         He is an active philanthropist.

·         Mittal Champion trust was set up with US $ 9 million to support 10 Indian athletes with world-beating potential.

·         A CSR system has also been set up to produce safe sustainable steel.

An astute businessman, with a knack of calculating risks to his own advantage, he has practically made his mark in the world. 

Lakshmi Narayan Mittal's Career

·         His first step towards reaching the billionaire club, took place in the early seventies, when he started working in his father's steel firm. In 1976, he moved to Indonesia, on the realization of the fact that opportunities for higher growth were limited to him in India.There, with his father's backing, he found a steel plant, Ispat Indo and made this company a success.

·         A shrewd businessman, his success has largely been built on buying up loss making state owned firms and turning their fortunes around.

·         In 1989, he turned a government owned firm that was making a loss of $1 million a day, in Trinidad and Tobago, into a profitable business. It was a situation, where US consultants and German experts had failed to find any solution.

·         With the similar strategy, he went ahead acquiring various firms all over the world, proving every risk worth its effort.

·         His list of acquisitions is a lengthy catalogue, including

1.      Sircasta: Mexico's third largest steel producer, in 1992,

2.      Steel Blast furnace plant, owned by the state in Kazakhastan,

3.      Steel plant in Europe,Germany in 1995, along with the formation of two new companies Ispat international Ltd and Ispat Shipping to assist the group.

Meanwhile, in 1994, a partition in the family business transferred all its foreign business under Ispat International. 

Awards and Achievements won by Lakshmi Narayan Mittal

Once ranked as the richest man in United Kingdom (in 2011), and the sixth richest in the world, with a personal wealth of US $31.1 billion, today his wealth has come down to $16 billion and his rank has dropped to 82nd place in March 2015. He has won many awards to his credit, and is a member of many prestigious groups of societies.

·         2007, he won the Padma Vibhushan , by the President of India.

·         Fellowship of King's college, London.

·         Grand Cross of Civil Merit, by Government of Spain.

·         2004, Entrepreneur of the year, by Wall Street Journal.

·         European businessman of the year, Forbes

Times magazine, named him in their list of ''100 most influential people of the world". 

ArcelorMittal- Company Profile

·         It was in the year 2004, when Mittal steel was formed through the merger of Ispat International and LNM holdings.

·         During the same period, Ispat International also merged with International Steel Group Inc.

·         ISG was an Ohio based company, which became the world's largest steel producer, with a net worth over $22 billion.

·         Mittal's steel empire stretches over 14 countries of the world.

·         In 2006, after major negotiations and oppositions, Mittal Steels took over European Steel giant Arselor for $33 billion, becoming the world's largest 100 million tonne steel entity. This merged entity was called, Arcelor Mittal, with the family owning 43.6 share of the group.

·         Apart from the mainstream steel business, they have diversified into shipping, coal, power, oil enterprises.

"The second richest person in the INDIA".

Problems Faced by Arcelor Mittal

·         In 2001, Mittal Steel had to close down on the Irish Steel plant. It led to a lot of criticism, as it left 400 people redundant and affected the concerned environment.

·         2002, 'The Mittal affair’, exposed links between UK Prime Minister Tony Blair and Lakshmi Mittal. Mittal's LNM steel company, sought Blair's aid in its bid to purchase steel industry in the state of Romania. Blair, on his part, wrote a letter to the Romanian government, hinting that the privatization of the firm and it's sale to Mittal might help them smooth their way into the European union.

·         Apart from this, multiple fatalities in his mines have raised questions about safety conditions. He has also been accused of 'slave labour'.