Lakshmi Mittal- Mastering the Success in Steel

The chairman and founder of the company, Lakshmi Mittal. He was born on 15 June 1950, in Sadulpur, in the Churu district of Rajasthan. His father, Mohan Mittal first established a steel mill in Uttar Pradesh and later when they shifted to Calcutta. His father partnered him with a steel mill there.

After graduating with a bachelor of commerce degree in business and accounting in the year 1969, he joined his family business. His family established their own steel company in 1976. Later, Mittal first bought a run-down plant in Indonesia. Followed by the purchase of the iron and steel company Trinidad and Tobago in 1989. Then Sibalsa in 1992 and Sidebac-Dosco in 1994.

Development of Mittal

Lakshmi Narayan Mittal took over the international operations of the Mittal steel business in the year 1994. After that, he left the house over a disagreement with his family. He even turned many loss-making steel plants successfully into many countries. His goal was to become the leading steel-making producer in Europe.

He wanted to become the boss of the market of high-quality wire rods mostly used for automotive manufacturing and highly developed applications.

Mittal took possession of Hamburger Stahlwerke from the Hamburg Government in Germany in the year 1994 which formed Ispat International Ltd or Ispat Shipping, Karmet in 1994, Irish Steel in 1995, Stalhlwerk and Walzdraht Hochfeld in 1998, and Unimetal from unison in 1999. After this, Ispat became one of the largest manufacturer units of high-quality wire rods in Europe.

By the year 2000, ispat integrated mini-mills became the largest producer of direct reduced iron worldwide. Ispat had amazing strategies like the best iron ore mines, deep water port facilities, and flat and long steel products with specialties like high-quality cold rolled, electro-galvanized, and coated slabs, steels, and wire rods. They sold their products across 55 countries.

Lakshmi Mittal owned 88% of the company which was managed by himself and his son Aditya Mittal from London even though the company was based in Rotterdam.

Mittal’s merger with Arcelor

ArcelorMittal is a multinational steel-manufacturing corporation which is based in Luxembourg City, Europe. The firm was set up in the year 2006 by Indian owned – Mittal Steel, the merger and takeover of Arcelor.

ArcelorMittal is the second-largest steel manufacturing corporation globally. In the year 2022, the company has mass-produced about 88 million metric tonnes of crude steel. The Global 500 ranked the company 197th in the world’s largest corporation in the year 2022.

ArcelorMittal has around 310000 employees in more than 55 countries. The CEO of the company is Aditya Mittal, the son of Lakshmi Mittal who is the founder of ArcelorMittal.

Business of ArcelorMittal

ArcelorMittal is a top-class business industry in the fields of automotive, household appliances, packaging, and construction. They have fairly large supplies of raw materials and a vast distribution network around the globe. Their industries are present in countries like Asia, Africa, Europe, and America.

ArcelorMittal sets an exceptional example for all the key steel industries, from brand-new to fully developed industries. With this company’s rocket growth, they will soon develop a position in Chinese and Indian markets too.

Establishment of ArcelorMittal

During a bid, there were two companies Arcelor and Mittal Steel bidding against each other for a total price of 4.8 billion dollars. At that time, Aditya Mittal, the son of Lakshmi Mittal had an amazing idea where he thought instead of competing against each other, the two companies should collaborate to achieve the maximum benefits.

It became obvious for steel companies to consolidate if they wanted to remain in competition. Because the prices of small industries were increasing rapidly due to competition opportunities were increasing by taking advantage of the national government’s sale of poorly performing steel plants began to disappear at that time.

Mittal announced a bid of 23.3 billion dollars for Arcelor on 27 January 2006. It was one of the most controversial moves in not just the business world but also became to topic of debate for national governments. Mittal increased its bid to 32.4 billion dollars on 19 May 2006. Further, Arcelor accepted the offer at the final price of 50.68 billion dollars.

Now the new company is popularly known as ArcelorMittal. It is by far the largest steel company worldwide. They control around 10 percent of total world steel output.

Wind up

Arcelor and Mittal have set an exceptional example in front of the world as both these industries were small-scale industries and today they are expanded internationally. Steel production is one of the factors of economic growth of the world after the Industrial Revolution.

These companies are heading towards globalization of the industries that require steel such as automobile, construction companies, shipbuilders, and appliance manufacturers. Due to plenty of work, these companies require steel all around the world at any time.

Because of this rapid competition, these steel companies must be efficient in their work.ArcelorMittal can provide a large range of products with the best quality to the consumers as they have many individual industries under them.

No doubt, after the merger of the two companies, they must have faced a lot of challenges but the company is still ranked as one of the best steel companies around the globe because of their skills and hard work.

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