Lakshmi N. Mittal is the Chairman and CEO of ArcelorMittal Essay
Lakshmi N. Mittal is the Chairman and CEO of ArcelorMittal. He was born in Sadulpur in Rajasthan, India on June 15, 1950. He graduated from St Xavier’s College in Kolkata where he received a Bachelor of Commerce degree. Mr. Mittal is married to Usha Mittal, and has a son, Aditya Mittal and a daughter, Vanisha Mittal Bhatia.
Mr. Mittal founded Mittal Steel Company (formerly the LNM Group) in 1976 and guided its strategic development, culminating in the merger with Arcelor, agreed in 2006, to found the world’s largest steelmaker. Since the merger, Mr. Mittal has led a successful integration, establishing ArcelorMittal as one of the world’s foremost industrial companies. He is widely recognized for the leading role he has played in restructuring the steel industry towards a more consolidated and globalized model. Mittal states: “Always think outside the box and increase the opportunities that appear, wherever they might be” Mr. Mittal is an active philanthropist and a member of various boards and trusts, including the boards of Goldman Sachs and European Aeronautic Defence& Space Company (EADS) N.V. He is also a member of the Indian Prime Minister’s Global Advisory Council, the Foreign Investment Council in Kazakhstan, the World Economic Forums International
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Lakshmi Narayan Mittal alias Lakshmi Niwas Mittal was born into a Marwari business family in Churu district of Rajasthan, India. His family moved from (Rajgarh) Sadulpur, Rajasthan to Calcutta in West Bengal. He graduated from St. Xavier’s College, Calcutta with a Bachelor of Commerce degree in business and accounting with first class. He has two siblings (brothers) named Pramod Mittal and Vinod Mittal. His father, Mohan Lal Mittal, ran a steel business, Nippon DenroIspat. Until the 1990s, the family’s main assets in India were a cold-rolling mill for sheet steels in Nagpur and an alloy steels plant near Pune. Today, the family business, including a large integrated steel plant near Mumbai, is run by Lakshmi’s brothers, Pramod and Vinod, but Lakshmi has no connection with it. Mittal started his career working in the family’s steel making business in India, and in 1976, when the family founded its own steel business; he set out to establish its international division, beginning with the buying of a run-down plant in Indonesia. Shortly afterwards he married Usha, the daughter of a well-to-do moneylender. In 1976, due to differences with his father, mother and brothers, branched out on his the LNM Group, and he has been responsible for the development of its businesses ever since. Mittal Steel is a global steel producer with operations in 14 countries Mr. Mittal began his career working in the family’s steelmaking business in India, and has over 35 years of experience working in steel and related industries. In addition to forcing the pace of industry consolidation, he has also championed the development of integrated mini-mills and the use of DRI as a scrap substitute for steelmaking. Following the transaction combining Ispat International and LNM Holdings to form Mittal Steel in December 2004, together with the simultaneous announcement of the acquisition of International Steel Group in the United States, he led the formation of the world’s then-leading steel producer. Subsequently, in 2006, under his leadership Mittal Steel merged with Arcelor to form ArcelorMittal. MITTAL STEELS
Mittal Steel Company is one of the world’s largest steel producers by volume, and also one of the largests in turnover. The company is now part of ArcelorMittal. Lakshmi Mittal’s family owned 88% of the company. Mittal Steel was based in Rotterdam but, managed from London by Mittal and his son Aditya. It was formed when Ispat International N.V. acquired LNM Holdings N.V. (both were already controlled by Lakshmi Mittal) and merged with International Steel Group Inc. (the remnants of Bethlehem Steel, Republic Steel and LTV Steel) in 2004. On 25 June 2006, Mittal Steel decided to takeoverArcelor, with the new company to be called Arcelor Mittal. The takeover has been successfully approved by shareholders and directors of
Arcelor making L.N. Mittal the largest steel maker in the world. History
In 1989, the company acquired Iron & Steel Company of Trinidad & Tobago. In 1992, the company acquired Sibalsa. In 1994, the company acquired Sidbec-Dosco. In 1995, the company acquired Hamburger Stahlwerke, which formed Ispat International Ltd. and Ispat Shipping, and Karmet. In 1997, the company acquired WalzdrahtHochfeld GmbH and StahlwerkRuhrort. In 1997, the company went public as Ispat International NV . In 1998, the company acquired Inland Steel Company. In 1999, the company acquired Unimétal. In 2001, the company acquired ALFASID and Sidex. In 2002, the company signed a Business assistance agreement with Iscor. In 2003, the company acquired NowaHuta. In 2004, the company acquired PolskieHutyStali, BH Steel, and certain Macedonian facilities from Balkan Steel. In 2005, the company hired Deloitte as the primary auditors for the company. In 2005, the company acquired International Steel Group. In 2005, the company acquired Kryvorizhstal. In 2005, the company announced the investment of $9 billion in Jharkhand, India . In 2006, the company merged with Arcelor after much controversy. In 2006, the company announced Investment for 12 million tonnes capacity steel plant in Orissa, India. In 2009, the company Acquired a 34% stake in Uttam Galva. Acquisitions
In October 2005 Mittal Steel acquired Ukrainian steel manufacturer Kryvorizhstal for $4.8 billion in an auction after a controversial earlier sale for a much lower price to a consortium including the son-in-law of ex-President Leonid Kuchma was cancelled by the incoming government of President Viktor Yushchenko. In 2005 Lakshmi Mittal flew into Jharkhand, India to announce a $9 billion investment to build a greenfield steel plant with a 12 million tonnes per annum production capacity. On 27 January 2006 it announced a $23.3 billion (€18.6 billion, £12.7 billion) bid for Arcelor. On 19 May 2006 Mittal increased its offer for Arcelor by 38.7% to $32.4bn, or $47.34 per share. On 25 June 2006 Arcelor, in a board meeting announced that it has accepted a further sweetened offer $50.68 per share and the new company would now be called ArcelorMittal, thus successfully ending one of the most controversial and publicised takeover bids in modern corporate history. ArcelorMittal is now by far the largest steelmaker in the world by
turnover as well as volume, controlling 10% of the total world steel output. Current Status
Mittal Steel today is world’s largest and most global steel company with shipment of 49.2 million tones and revenue of over $28.1 billion in 2005 and net income of $3.4 billion The company produces No. 1 high quality steel with crude steel capacity with more than 70 million tons per annum. It owns steel making facilities in 16 countries spanning 4 continents and employs 2,24,000 people spanning 49 different nationalities today. MITTAL AS A LEADER
Mittal is today considered as one of the most successful business leaders of India. He has reached to the heights of success through his leadership qualities and his intelligence. He is known to have excellent entrepreneurial abilities which help him compete with his competitors and excel in the field. He has the ability to think big and execute his thoughts in a magnificent way with no flaws and defects. He also is known to have the ability to rope in big players and get associated with investors and companies that are known to have the best reputation and maintains a good will and a good market share in the field. He has always been known to have the ability to make contacts with people through his convincing attitude and that has helped him make associations and mergers with the big names of steel industry. Mittal’s vision and faith in him are also two things that have added as major source to his success. He has a very strong and clear vision and believes in whatever he does. He has a strong faith that hard work pays off and so is never reluctant to work rigorously. His motivating, convincing and guiding qualities always help him keep his followers committed and determined to achieve the goals set for them by the organization. His patience and tolerance as well as his ability to put in sustained hard work keeps him going against all odds and survive in this contemporary world of competition. Mittal is also known to remain determined in his efforts and does not get dejected no matter how hard the time is. He remains abreast of global happening to forecast future trends and then adjust own strategies accordingly to remain relevant to contemporary times. This helps him survive in the business world today by bringing all the
necessary changes in the organization according to the changing external environment. His business is his passion and he remains steadfast to achieve his objectives, surmounting all types of obstacles and hindrances. He inspires his subordinates and workers who have faith in him and his leadership. This mutual understanding makes a winning team for Mittal and his organization Entrepreneurial Ability.
Mittal is known to have extraordinary entrepreneurial ability. This ability allows him to compete among his contemporaries and excel in his work. Mittal has been very successful in managing his work force and dealing with his partners and clientele in a very effective and intelligent manner. Ability to Think Big and Execute Flawlessly.
Mittal has an ability to think big. He is known to define a big picture first before drilling down into a higher level of details. He has ability to think big and execute his plans and ideas flawlessly. He thinks big, thinks beyond mundane, and has courage to take chances and risks. No business can succeed until you take a risk and Mittal is a living example of that. He has always been an initiator and always invests in new ideas tends to pursue his objectives vigorously. Ability to Rope in Big Players.
Lakshmi Mittal one major reason of success is his is ability to rope in big players with deep pockets .He has the art to attract people who have good investing power and convince them to work with his firm .He has acquired a lot of organizations and has also been successful in doing mergers and joint ventures with a lot of re known firms (like NOVA HUT, Polski Huty State and B H Steel). His ability to see the potential investors and convince them to work with Mittal Group has allowed him to expand his business. Vision and Deep Faith.
Mittal is a visionary personality and is known to have a strong and clear vision. He has a deep faith in himself, is very sure of whatever he plans to do and puts in all the efforts he possibly can, to ensure that his goals are achieved. Vision and faith in your ideas are a pre-requisite for any successful entrepreneur. Ability to Motivate, Convince and Guide.
Lakshmi Mittal has very motivating, convincing and guiding qualities that keep his followers committed and determined to achieve the goals set for them. He is known as a very inspiring leader and has a quality to motivate his employees in attaining the desired goals and objectives. This does not only help him attain his company’s ultimate objectives but also help reduce retention level at his firms and increase job satisfaction at his organization. Patience and Hard Work.
Mittal has patience and ability to put in sustained hard work keeps him going against all odds. He does not believe in giving up on his ideas and efforts .This is where the faith comes in, he has a strong faith and belief in his ideas and opinions and stick to them until he achieves what he planned to. Outstanding Vision.
Mittal always remain abreast of global happenings and that helps him bring the required changes in the organization. He is known to forecast future trends and then adjust own strategies accordingly to remain relevant to contemporary times.
Zeal and Passion.
Lakshmi Nivas Mittal considers his business as his passion and remains steadfast to achieve his objectives, surmounting all types of obstacles and hindrances. His passion and determination has played a critical role in Mittals success and has helped him go through all the hard times. Leadership.
Mittal inspires his subordinates and workers who have faith in him and his leadership. His employees look up to him and consider him as their source of inspiration. They always have the access to their leader and are very open to him in sharing their ideas and opinions to their leader and this mutual understanding makes a winning team for Mittals organization. MITTALS’ LEADERSHIP TRAITS
Mittal is a transactional leader who guides and motivates his followers in
the direction of established goals by clarifying role and task requirements. Initiator.
Mittal’s leadership traits and attributes include the quality of being an initiator. He was the first mover in steel sector of India and was the first among resident and non-resident Indians who stepped in the steel industry at the time of crisis in the steel industry in India. Today, he stands as one of the most successful Indian business tycoon and among the richest men in the world. Analyst.
Mittal is known to have a very good analytical skill. He can analyze the trends in the industry and economy overall and has the ability to measure the right stuff according to the trend in order to ensure success in the aims and objectives of the firm.
Managing crisis is one important characteristic of a leader. In odere to be a successful entrepreneur, you need to have an ability to manage the expected as well as uncertain crisis is an effective way. Mittal is known to have a very intelligent sense of managing crisis and has always kept up the hopes of investors at times when economic crisis took place and times when steel sector was facing its downhill. Vision.
Vision of Mittal is making Mittal group as the premium Indian conglomerate and expanding their business over the globe. He is a visionary with a clear and concise vision to achieve all that he wants. This vision and ability to think big has brought Mittal on the height of success where he stands today. Negotiator.
In order to be a successful businessman in today’s era of globalization where diversity exists in all areas of the economy and you are expected to work and negotiate with people from all around the globe, the ability to negotiate well holds a major importance. Mittal Group has tied up with companies like Kryvorizhstal ,Stelco, Arcelor, Sibalsa, Sidbec dosco , Hamburger,Karmet. etc and this has all been possible by Mittal’s ability to negotiate intelligibly with others. Adaptability.
Adaptability and flexibility in business today is essential. One has to interact with people from a wide array of cultures and for that one has to have the ability to adapt himself according to the situations and conditions around. Mittal has the ability to mold himself according to the circumstances and that has is what has molded him into a successful entrepreneur
FACTORS THAT LEAD TO MITTAL’s SUCCESS
Mittal today has reached to the heights of success through his leadership and entrepreneurial abilities. He is among the richest men in India and in the world and is also among one of the biggest business tycoons India has ever produced. Mittal has a variety of qualities that one should have in order to be a successful leader and that includes the ability to take decisions amidst uncertainties, reading customer mind and predicting the future consumption trend and taking necessary steps in order to keep the market share intact. He also has the ability to keep your speed double to the change in market. Alignment of organizational objectives and employees’ aspirations is also a characteristic that has helped Mittal keep his employees satisfied and motivated and ultimately they have helped his firm and him survive for so long and so well and achieve success. Quickly recognizing the changes in macro environment and responding accordingly is also a characteristic that Mittal and he knows what step to take and when. Mittal’s efforts to make his firm a learning organization has also played an important role in achieving the success that Mittal has. He has been successful in reducing the turnover rate and retaining his employees over the years by ensuring job satisfaction amongst his employees. Mittal also holds the tendency to build a team by recruiting talent. MITTAL’s EMPLOYEES- His Responsibility
Employees are one of the most important drivers of growth and success for any organization. At Mittal Steels, his MANTRA for employee delight focuses on 4 Ps People.
Mittal as a leader has always focused on his people including his employees, his partners, his co-workers and his competitors. He believes that a
satisfied employee can only satisfy a customer in the best possible way. Mittal states that his people are his most valuable assets and he believes in investing them as they will pay off later. Mittal always encourages his people to give ideas and opinions and believes in a very participative leadership style. He allows them to add in the decision making process, in problem solving, in projects initialization. He also certifies that his employees are always satisfied with the working conditions and have high morale in order to not only reduce turnover rate but also ensure job satisfaction amongst them. Pride.
Mittal infused a sense of pride in his workers to be part of Mittals Steel. This sense of belonging motivated his workers to work tirelessly for the success of their organization. Passion.
Mittal is highly passionate as his passion is to do something better. Past years created an indelible mark in Mittal’s mind, and began to fuel his passion to achieve something big in his life. He was well ingrained in the Steel business within a few years, but he was not satisfied with the prospect of running a small business. There was a fierce ambition in Mittal, which drove him to achieve greater heights Performance.
For Mittal performance is something that play a vital role in his organization productivity. Therefore he also offer performance based bonuses to his employees.
Successful leadership means picking the right people for the right assignments and developing them. Lakshmi Mittal buys and builds industries that have become weak and fragmented. It has been his diligence and assiduousness that he is praised by people around the globe. As Alan Coast, a London based steel analyst says “Ispat does so well because Mittal is a master of change, He is very good at making deals and getting performance out of the companies he has acquired. And being sole owner makes him more fleet of foot than the old, entrenched companies.” His business philosophy can be explicated in this way that the Calcutta chele (which means boy in Bengali) believes in consolidation of industry. He considers himself as the Bill Gates of India, as he himself said “I’m like to think of myself as the Bill Gates of India”, I am very driven. And probably more so now than ever before. Emerged, emerging or submerging markets – they all represent opportunity to me”.
Delegation Success Story
Lakshmi Mittal runs Ispat, the best steel the company on the planet, incorporated in Netherlands and has its headquarters in London, and one ponders how Lakshmi Mittal makes this possible. The only plausible reason is through effective delegation. To make any organization thrive, the leader must not withhold authority; rather empower his/ her employees in such a way so that competence and skills are fostered. The continued success of Ispat to the extent that it now produces steel not only in Europe but also in North and South America is because Lakshmi Mittal believed that he should use the energy of his employees, workers and integrate it with his vision and long term goals of the organization. This has made the company excel and multiple effectiveness to the extent that tit uses its own ocean-going fleet to ship goods to customers all around the world. Assigning Work
Leader’s effectiveness depends on knowledge and skills in solving organizational problems. An expounding of light on Lakshmi Mittal’s skills reveals that the leader is not merely an effective as an entrepreneur who started out on his own and bought steel mills in Eastern Europe. Mittal has earned himself a repute of a formidable dealmaker, he assigns tasks to his workers in such a way that they anticipate his need, they help him buy struggling steel mills and then they invest in it and the business turns into a competent private-sector company. He is very firm about the assigning of roles, conducting of tasks and finally on evaluations of the way the tasks were done. He himself spoke about his work manners by saying “At any time I am likely to be working on two or three acquisitions”, you have to have two or three options because you can never be sure which one is going to work out. If I’ve decided something, I tend to get it done. I have an aggressive approach, but I like to believe that I’m a reasonable negotiator.” Surely all this is not possible without the untiring effort and devotion of his workers. Technical Skills
His expertise cannot be challenged when it comes to commanding business, his own words expound light on this matter, he was once quoted saying “Being Indian is a real advantage if you are doing business in a lot of different countries. You learn a lot about bridging differences and reaching compromises when you grow up in a country with over 300 languages and ethnic groups.” This quote made by him shows that the leader is very able is using work assignments to develop people and communicating information to employees, who may be from his native land or any foreign country. Lakshmi Mittal looks at everything as an opportunity. Mittal grew up in India’s western Rajasthan desert, he is a devoted Indian and hence traditional Indian practices still govern his workplace. The most significant is the century old Partha accounting practice, by which all costs are calculated at the end of each working day. Regarding this Mittal said “I tell my managers that I expect Partha-style accounts each day. They say I am insane, but I tell them that’s what you have to do if you want to work for Ispat.” Relational Skills
Mittal may be responsible for winning the steel industry’s greatest tassles, but he does so as he pushes himself for one battle after another. Mittal is known for his philanthropic efforts but his work relations can be best surmised by this statement “whilst Mr. Mittal is intensely aware of all relevant issues affecting the company, he does not tolerate anything other than first-rate performance.” Mittal spent a decade learning the ways of business; he is a soft spoken person nevertheless. He is known for throwing extravagant parties and spending lavishly on family. This may also be interpreted as his way of telling people that his presence is there and he intends to be more successful. In times of stress Mittal believes that everyone experiences tough times, it’s a measure of your determination and dedication, how you deal with them and how you van come through them. This has not only been his mantra when it comes to deal with problems, but this has his preaching Conceptual Skills
Born into a state where there was no electric power until the 1960’s, Britain’s richest tycoon started buying small decrepit steel mills and made them successful enterprises, he also got hold of impressive acquisitions but none of this changed the way he believed. His beliefs still consisted of dividing work fairly among employees and having the same ethical code of conduct for all employees. This can be exemplified by the simple fact that he owns only 40% of the shares and voting shares in the company and ArcelorMittal’s 11 members Board of directors are responsible for the supervision of the company. He may have established his business in England since he found that place as a financial center, but he longs to live and work in his home country. He is a man of simple nature and is not at all boasting of his successes, as in a rare interview he said “Having made so much money, however, is there not a temptation for you and your family to go and lie on a beach somewhere?” Style of interpersonal relations
Belonging to a traditional social orientation where the needs and interests of the group are placed above the individual’s, Lakshmi Mittal very beautifully played this role when it came to being an entrepreneur. His style of leadership can be easily classified as that of a Traditional Leader. He is courteous with his employees, meeting the needs of his people, employees and making it his first priority. Mittal firmly believes that organizations only leapfrog when its employees are made to participate in. An example of Mittal’s such behavior is that his marketing men have come up with a slogan and labeling the conglomerate as the steel maker of the next millennium. Mittal’s family owns 88 percent of the company, this has induced people to think that the family has been enriching itself at the expense of the workers and surrounding communities; Mittal however rejects such accusations. Mittal is renowned for his contributions to the society namely the establishment of the “Mittal Champions Trust” as he saw that Indians were not given enough chance to prove their mettle. MITTAL’s PERSONAL ASSETS
His residence at 18-19 Kensington Palace Gardens–which was purchased from Formula One boss Bernie Ecclestone in 2004 for £57 million, made it the world’s most expensive house at the time. Mittal’s house in Kensington, London is decorated with marble taken from the same quarry that supplied the Taj Mahal. The extravagant show of wealth has been referred to as the “Taj Mittal”. It has 12 bedrooms, an indoor pool, Turkish baths and parking for 20 cars. Mittal bought No. 6 Palace Greens, Kensington Gardens, formerly owned by financier Noam Gottesman, at £117 million for his son Aditya Mittal who is married to Megha Mittal, owner and director of the Board of the German fashion luxury brand Escada. Mittal bought No. 9A Palace Greens, Kensington Gardens, formerly the British Philippines embassy, at £70 million in 2008 for his daughter Vanisha Mittal Bhatia Bhatia who is married to Amit Bhatia a businessman and a philanthropist. Mittal owns three prime properties collectively worth £500 million on the “Billionaire’s Row” at Kensington Palace Gardens. Mittal also owns another London home at 46B, The Bishops Avenue called the Summer Palace. It’s dubbed as “Millionaires Row” and is reportedly for sale at £40 million.Mittal also owns a 5,500 sq ft penthouse apartment at 148-150 Old Park Lane London, just above Hard Rock Cafe which he purchased for £7 million in July 2002 from Lord Alan Sugar. In 2005, he also bought a colonial bungalow for $30 million at No. 22, Aurangzeb Road in New Delhi, India, the most exclusive street in the city occupied by embassies and millionaires, and rebuilt it as a house. In January 2011, Lakshmi Mittal bought a luxury home in Scotland.
Mittal has knocked down a £4 million property to build his new home, valued at around £15 million, making it Scotland’s most expensive home. The Mittal mansion is coming up in one of the most elite neighborhoods, right near the Gleneagles golf course in Perthshire County. This luxury villa has six bedrooms and two kitchens. The wallpaper and furniture are from Ralph Lauren’s home collection. The wooden flooring and tiles were imported from Germany and a luxury bathroom is estimated to be worth £80,000. Mittal is now planning to build a Zero Carbon footprint estate in Surrey, a 340-acre estate also called Alderbrook Park which was built as a country estate during the 19th century but was part-demolished in the 1950s and replaced with a less-attractive home. He purchased the estate for £5.25 million and is planning to spend £25 million on it to make it 100 per cent self-sufficient and eco-friendly. The unique modern design will not only ensure the house is zero-carbon, but will make the entire 340-acre estate carbon negative. The house will be built on a stone plinth, which will provide various terraces on which to enjoy the cocktail hour. It will have at least 10 bedrooms, outdoor and indoor swimming pools, a fitness centre, an under-ground art gallery, tennis
courts, sculpture garden, an arboretum and croquet lawn MITTAL’s CONTRIBUTION TO COMMUNITY
Mittal is known to have a very positive role in society as far as community service and social service is concerned. He is known to have started many projects and has contributed as main provider of electricity in various regions of India. . Mittal Steel acquired Urban development project in Karaganda in 1995. They also constructed modern facilities for the Karaganda Metallurgical institute. In Algeria, Mittal’s Company gave $100,000 aid to help the poor there and $242,000 corporate contribution was also given in 2005. Management and employees at Mittal’s firm raised more than $500,000 for red-cross to help the affected of Katrina earthquake that did hit India a year ago. Mittal is also combining with Luxembourg-based Arcelor SA in a $38.3 billion transaction to create a company pouring a 10th of the world’s steel. This will further help him to provide India a source of pride.
In 1996, Mr. Mittal was awarded Steelmaker of the Year by New Steel in the United States and the Willy Korf Steel Vision Award by World Steel Dynamics in 1998 for outstanding vision, entrepreneurship, leadership and success in global steel development. He was named Fortune magazine’s European Businessman of the Year 2004. Mr. Mittal was awarded Business Person of 2006 by the Sunday Times, International Newsmaker of the Year 2006 by Time Magazine and Person of the Year 2006 by the Financial Times for his outstanding business achievements. In January 2007, Mr. Mittal was presented with a Fellowship from King’s College London, the college’s highest award. He also received the 2007 Dwight D Eisenhower Global Leadership Award, the Grand Cross of Civil Merit from Spain and was named AIST Steelmaker of the Year. In January 2008, Mr. Mittal was awarded the Padma Vibhushan, India’s second highest civilian honor, by the President of India. In September 2008, Mr. Mittal was chosen for the third Forbes Lifetime Achievement Award, which honors heroes of entrepreneurial capitalism and free enterprise. In October 2010, he was awarded the World Steel Association’s medal in recognition of his services to the Association as its Chairman and also for his contribution to the sustainable development of the global steel industry.
CRITICISM AND ALLEGATIONS ON MITTAL
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 and questionable safety records
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 Kazakhstancaused by faulty gas detectors. Mr. Mittal has been accused of running a series of coal mines in Kazakhstan with abhorrent safety records. Between 2004 and 2007, the lax standards were responsible for the deaths of 91 coalminers and the subject of a criminal investigation. Witnesses to a 2006 explosion, which claimed the lives of 41 people, maintain that, despite the plumes of flammable gas, managers at the mines pushed the employees to work so that they could meet their production as well as other targets. One employee even told that the pressures local managers put us under to meet targets so that they can collect their bonuses are more and more stressful. We are being exploited like animals.” Former miner turned trade unionist Pavel Shumkin even claimed, that the miners all agree, compared with life now under Mittal, for them everything was better in Soviet times.
The Mittal Affair: “Cash for Influence”
In 2002, Plaid Cymru MP Adam Price obtained a letter written by Tony Blair to the Romanian Government in support of Mittal’s LNM steel company, which was in the process of bidding to buy Romania’s state-owned steel industry. This revelation caused controversy, because Mittal had given £125,000 to the British Labour Party the previous year. Although Blair defended his letter as simply celebrating the success of a British company, he was criticized because LNM was registered in the Dutch Antilles and employed less than 1% of its workforce in the UK. LNM was a “major global competitor of Britain’s own struggling steel industry”. Blair’s letter hinted that the privatization of the firm and sale to Mittal might help smooth the way for Romania’s entry into the European Union. It also had a passage, removed just prior to Blair’s signing of it, describing Mittal as a friend. Queens Park Rangers
Recently, Mittal had emerged as a leading contender to buy and sell Barclays Premiership clubs Wigan and Everton. However on 20 December 2007 it was announced that the Mittal family had purchased a 20 per cent shareholding in Queens Park Rangers football club joining Flavio Briatore and Mittal’s friend Bernie Ecclestone. As part of the investment Mittal’s son-in-law, Amit Bhatia, took a place on the board of directors. The combined investment in the struggling club sparked suggestions that Mittal might be looking to join the growing ranks of wealthy individuals investing heavily in English football and emulating other similar benefactors such as Roman Abramovich. On 19 February 2010, Flavio Briatore resigned as QPR chairman, and sold further shares in the club to Ecclestone, making Ecclestone the single largest shareholder. Environmental damage
Mittal purchased the Irish Steel plant based in Cork from the government for a nominal fee of £1 m. Three years later in 2001, it was closed, leaving 400 people redundant. Subsequent environmental issues at the site have been a cause for criticism. The Government tried to sue in the High Court to have him pay for the clean-up of Cork Harbour but failed. The clean up was expected to cost €70m.
Mittal has established himself as a business tycoon not by chance, but by sheer hard work and commitment to himself, his family and his business. He has remained very steadfast and displayed great resolve to achieve what he aimed for. He understands the intricacies of business well and creates opportunities from challenges faced down the road. Mittals has good business sense that guides him in venturing in those avenues which promise significant returns. With his power of conviction, he took chances and gained substantially. He knows the value of his workers, appreciates their role in success of his business and rewards them accordingly. His subordinates are happy and take pride in belonging to Mittals. This bondage has played a key role in the success of Mittals. He is a trend setter and is studied by those who wish to succeed as an entrepreneur.
http://business.mapsofindia.com/business-leaders/lakshmi-narayan-mittal.html http://www.britannica.com/EBchecked/topic/1089324/Lakshmi-Mittal http://www.jeremyjosephs.com/mittal.htm
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