Lakshmi Niwas Mittal – From Broke to Billionaire

Lakshmi  Niwas Mittal is the king of steel companies. He is a powerful steel industrialist who is the executive chairman of ArcelorMittal which is the globe’s largest steel company and also the chairman of Aperam, stainless steel manufacturer. 

This was a long way to his success, let’s see how a small village boy becomes a billionaire.

Early Stage of Lakshmi Niwas Mittal

Mr. Lakshmi  Niwas Mittal was born in a very middle class on 15 June 1950 & in a small village of Sadulpur, Rajasthan, the Marvadi family. He lives in a joint family of 20 members, and they all used to sleep on mats and the floor. In his village, there was no electricity or water. His father was a businessman, and when he was six years old they shifted to Calcutta. In Calcutta, his father started a small company of steel in partnership.

Lakshmi Niwas Mittal completed his school in Hindi medium at Shree Daulatram Nopany Vidyalaya. He then intended to attend St.Xavier’s College in Calcutta to complete his academic achievements. But the principal of the college was not ready to give him admission because he did schooling in Hindi medium. He tried a lot to convenience the principal to be the best student and finally got admission to the college. Afterward, in 1969 he toped B.com and proves his principal wrong. During his graduation, he also went to his father’s office for some hours to help him.

Starting off his Career

Since, graduating, he teamed up as a clerk for his dad’s business, Nippon Denro Ispat. In 1975, he was going on a trip with his friends to Singapur, Indonesia, Hong Kong, and Japan. His father told him to sell the property in Indonesia that he brought for the steel mill, but was not giving them any profit.

However, when he went there he came to know in India there are many restrictions related to Licence and Export while in Indonesia, there were not that many restrictions compared to India. Then he makes agreed with his father, to start a steel mill there. Leaving behind all his trip he started work at a mill. Finally, in 1976 he opened a company on that place named Ispat International. He spent 14 years in the family company and realized that starting a company from zero takes a lot of time to grow.

Afterward, he acquired Trinidad mill in 1989 which was going into loss, he was not having money to buy the mill then he choose the option Lease-cum-buy.  He run the company on lease for five years and convert the company capital from getting lost to profitable then after 5 years he bought this mill. 

In 1992 and 1994, he did the same for Sibalsa and Sidbec-Dosco mill. Until 1994, he believed that there were increased opportunities for progress in foreign countries. However, his father and brother want to expand their business in India only. Then he take over all the business that was out of India and his father & brother were handling the business in India only.

Growth Period

If we have to grow, we have to do something different than every else has been doing”- Lakshmi Niwas Mittal

After that Lakshmi and his family moved to London. In 1997, he list his company on New York and Amster dam stock exchanges. He continues the formula of Lease-cum-buy and expands his business in almost 14 countries like the USA, Romania, Ukerena, Canada, the US, etc.

In 2004, LNM Holdings merged with Ispat International & named it Mittal Steel Company NV. Additionally, in October then it also merges with the Internal Steel group which was one of the top 5 holding groups of steel mills in the USA. With this Mittal, steel becomes the world’s biggest steel producer.

Next in 2005, the company purchase a 37% stake in Hunan Valin Iron & steel in china for $ 314 million dollar. Afterward in 2006, Mittal company merged with Arcelor of Luxembourg which was the world’s 2nd biggest steel producer. Many controversies happen for this uniting but at last, this happens. With this Arcelor + Mittal =AreclorMittal becomes the world’s largest steel company. 

Other than steel now this company is dealing in coal, electricity, oil, and in many other.

Accomplishment

In 2005, he was in the 3rd position on the list of the world’s richest men. His firm operates over 250000 people in over 14 different countries around the world. He had been awarded so many awards, one of them being Padma Vibhushan by the government of India in 2008. 

  • His daughter’s wedding cost $55 million.
  • Numerous millions of dollars were donated to charitable causes.
  • A book is written about him called Cold Steel.
  • Bought a $128 Million house in London
  • He sponsored a few Indian Athletes for the Olympics.
  • Owns 2 mega luxury buses.
  • Donated Rs.100 crores to PM care fund in India during a pandemic.
  • Net worth as of 2022 is $18 billion.
Closure

Mr. Lakshmi Niwas Mittal is an example, that if you don’t belong to a rich family then also you can achieve so much in your life. We just need to work hard to be successful. 

The Success Story of Lakshmi Niwas Mittal makes the biggest impact on people’s life.

“You Must take bold Decisions”- Mr. Lakshmi Niwas Mittal

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