LAKSHMI NIVAS MITTAL

Always think outside the box and increase the opportunities that appear, wherever they might be

WHY LAKSHMI NIVAS MITTAL ?

BIOGRAPHY - LAKSHMI NIVAS MITTAL

Indian born British steel tycoon Born on June 15th 1950 in Rajasthan Family moved to Kolkata from Rajasthan His father Mohanlal Mittal set up a small steel mill in Kolkata.

 Finished his bachelors degree in business and accounting Mittal began his early career in his fathers steel firm in the early 70s In 1976 Mittal moved to Indonesia and acquired a steel plant ISPAT INDO. His success has largely been built on buying up loss making steel owned mills and quickly turning them around.

 His wife Usha runs the Indonesian business and his son Aditya and daughter Vanisha are members of the board of directors of Mittal steel.

MITTAL STEEL

ACQUISITION STRATEGY
Buying up loss-making state-owned mills and quickly turning them around. Pioneered the use of direct reduced iron or DRI to produce steel. Trinidad and Tobago Mills. Kazakhstan takeover.

BUSINESS STRATEGY

Pursuit of constant restructuring and cost-cutting Moving away from commodity steel production Specialization Higher value added production Growth strategies Growing market required Sufficient cost advantage New technologies Changing mindsets from regional to global Mergers resulting in major industrial rationalisation

THE BIGGEST DEAL IN THE GLOBAL STEEL INDUSTRY EVER MITTAL STEEL VS ARCELOR

1989 , NETHERLANDS
FORMED WHEN ISPAT INTERNATIONAL N.V AQUIRED L.N.M. HOLDINGS CHAIRMAN AND CEO: LAKSHMI MITTAL CFO: ADITYA MITTAL THIS IS NOT ABOUT CREATING A GIANT , BUT ABOUT CREATING THE SUSTAINIBILITY OF THE STEEL INDUSTRY

2002 , LUXEMBOURG
WAS CREATED BY THE MERGER OF ACERALIA(SPAIN) , USINOR(FRANCE) AND ARBED(LUXEMBOURG) CHAIRMAN : JOSEPH KINSCH CEO : GUY DOLLE MITTAL STEEL IS A COMPANY OF INDIANS

Mittals understood that Acquisitions was the way to grow in this fragmented steel industry L.N wanted to grow fast

The son wanted to grow faster

MILESTONES ON THE MERGER PROCESS

Mittal first acquired, Kryvorizhstal of Ukraine for 4.5b He always wanted it to be a friendly merger rather than a hostile takeover hence the first informal meeting happened at the Mittal Residence. The idea and the offer was rejected by all Stakeholders. Arcelor Management Arcelor Employess Multiple governments of Europe The shareholders

WORKING THEIR WAY THROUGH

1) Handling the various governments 2) Launching a formal hostile takeover 3) Entry of White Knight (SEVERSTAL) with counter bid (26TH MAY 06) 4) 20 TO 30 % Arcelor shareholders demand right to chose between Mittal and Severstal proposals 5)Mittal raises bid to 35.3 billion US$

4) 93% Acceptance announced THE DEAL IS THROUGH!!

ARCELORMITTAL OR MITTALARCELOR?

HEADQUARTERS : LUXEMBOURG CO- CHAIRMAN : JOSEPH KINSCH CO-CHAIRMAN AND CEO : LAXMI NIWAS MITTAL CFO : ADITYA MITTAL MITTAL STEEL HOLD 45 % STAKE IN ARCELOR MITTAL ARCELOR MITTAL HAS 320,000 EMPLOYEES WITH OPERATIONS IN 60+ COUNTRIES IN 2007 , THE COMPANY EARNED A REVENUE OF 105 BILLION$ THE NEW COMPANY HAS A CAPACITY OF 120 MILLION TONNES OF STEEL

This story of Lakshmi Niwas Mittal has really proved that what the mind can conceive and believe, it can achieve.

CRITICISM AND ALLEGATION

PHS
Lakshmi Mittal successfully employed Marek Dochnal's consultancy to influence Polish officials in the privatization of PHS steel group, which was Poland's largest. Dochnal was later arrested for bribing Polish officials on behalf of Russian agents in a separate affair. In 2007, Polish government said it wants to renegotiate the 2004 sale to Arcelor Mittal.

Slave Labour Allegations

Employees of Mittal have accused him of "slave labour" conditions after multiple fatalities in his mines. During December 2004, twenty-three miners died in explosions in his mines in Kazakhstan caused by faulty gas detectors

 The Mittal Affair: Cash for influence Queen Park rangers

CRITICISM AND ALLEGATION

Environmental Damage

QUALITIES AND DISTINCTIVENESS

Hard working Outstanding vision Convincing, Motivating and guiding Zeal and fierceness Capacity to lead Bravery

LEADERSHIP STYLE
A transactional leader: Mittal is a transactional leader who guides and motivates his followers in the direction of established goals by clarifying role and task requirements.

The Leader in Mittal A great individual A corporate leader in business Started the trend of mergers around the world A caring family man A complete human being

 L N Mittal is a member of

The Foreign Investment Council in Kazakhstan, The International Investment Council in South Africa, The World Economic Forums International Business Council and The International Iron and Steel Institutes Executive Committee.

L N Mittal is on the advisory board of the Kellogg School Of Management in the US

CORPORATE SOCIAL RESPONSIBILITY

Mittal Steel believes that businesses should play a major role in supporting the communities in which they operate. Operations by Mittal Steel in the social responsibility kind of support to:

sense

of

Kazakhstan South Africa USA

Algeria
India

EDUCATION

Mittal Steel South Africa has donated over $177mn to community development projects Companys latest project to sponsor South Africa national science Olympiads Mittal Steel sponsorship is valued at $1.5mn

HEALTH AND SAFETY

Robust set of safety standards to reduce accidents. Mittal Steel operates an E-Room. Safe business is a good business.

AWARDS
Mittal was awarded Fortune magazines European Businessman of the Year 2004 Previously, he was awarded Steelmaker of the Year in 1996 by New Steel in the USA The Willy Korf Steel Vision Award in June 1998

In March 2005, Forbes named him the third richest man in the world and the richest non-American, with a wealth of $25 billion.

FUTURE PLANS