Laxmi mittal

Narayana Business School of Management , Ahemdabad.

Lakshmi Mittal “ STEEL KING ”

Chairman and Founderof

Arcelor-Mittal Steel Group of Companies

Presentation on

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Prepared By :-

Anamika Deepika

Kuldip PALPankaj

RESULT

Biography & Family Back Ground

Business Idea and Start-up

Business Strategies and Policies

Awards and Achievements

Massage of His LIFE.


Flow of Presentation

Present Status of Lakshmi Mittal

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Biography & Family Back GroundIndian born British steel tycoon.Born on June 15th 1950 in Rajasthan, Sadulpur Village. Family moved to Kolkata from Rajasthan. He graduated at the top from St. Xavier's College in Calcutta

(Now known as Kolkata) with a Bachelor of Commerce degree in Business and Accounting in 1969.

His father Mohanlal Mittal set up a small steel mill in Kolkata.Began his career working in the family's steelmaking

business in India, and in 1976. He married with Usha. In 1994, he branched out on his own due to differences with

his father with his uncles.

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Business Idea and Start-up.His vision and hard work, Mittal pioneered the development

of integrated mini-mills and the use of Direct Reduced Iron or “DRI” as a scrap substitute for steelmaking and led the consolidation process of the global steel industry.

Between 2001 and 2004 takeover of plants in Romania, the Czech Republic and Poland followed.

In 2004 Mittal Steel became the largest steelmaker in the world, with shipments of 42.1 million tons of steel and profits of over USD 22 billion.

In February 2005, he got his big-ticket entry into the lucrative European market.

In June 2005, acquired the massive 5 million ton Kazakh steel plant, Karmet from the government of Kazakhstan

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Continue….

The year 2005 saw a tug of war between Mittal and Arcelor. Mittal beat Arcelor to the 4.8 billion dollar deal. Less than three months later, Mittal launched his takeover

bid of Arcelor. And at that time he became the world's largest steel

producer at 150 million tonnes steel in 2006 year. Ukraine's government gave him owner as a ‘Sultan of

steel’.

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Continue…. Arcelor Mittal Deal

Mittal beat Arcelor to the 4.8 billion dollar deal World’s two largest steel makers was merged and the new

company will account for 10% of global production.

Legal Complexities Faced for Merging such as,

Multinational Jurisdiction EC (European Council) Directive Anti competition Laws Shareholder resolutions etc…..

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Head Quartered in Netherland The world’s largest steel producing company Global presence in 18 countries with 260,000 workforce Highest revenue in the industry Tremendous acquisition momentum Product versatility in every segment Biggest “ Direct Reduced Iron ” producer Today the world's largest steel producer at 150 million tonnes steel in a year.

Introduction Arcelor-Mittal Empire

Narayana Business School of Management , Ahemdabad. 7


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Hierarchy of ARCELOR-MITTAL STEEL COMPANY


Arcelor Mittal Steel Company’s strategy is not only about growth but they are Implementing some Corporate and Social Responsibility strategies which are given below,

A)Business policiesB)HR strategyC)Environmental strategyD)Community strategyE) Shareholders strategies

Business Strategies and Policies


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

(Business Polices)Arcelor-Mittal Steel

Company

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To maintain our position in the lowest cost quartile

Initiatives aimed at cost reduction, through: Operating efficiency improvements Raw materials & procurement initiatives Increased labour productivity Newcastle PCI project Improving our operating capabilities

Improving our cost competitiveness Growth through optimal capital expenditure

Focusing on global marketing efforts Creating an a high performance culture Be a responsible and corporate citizen


(HR Strategies)Arcelor-Mittal Steel

Company

Communication

Common culture

Training and development

Mutual respect

Individual counseling


(Environmental Strategies)Arcelor-Mittal Steel

Company

Greenhouse gas emissions

Waste, water resources and pollution

Research & Development of product sustainability


(Community Strategies)Arcelor-Mittal Steel

Company

Local economic development Foundation for social investment practice Community engagement around new acquisition and resettlements Main provider of electricity. Urban development project in Karaganda Mittal Steel acquired

Termiratau in 1995. Constructed modern facilities for the Karaganda Metallurgical

institute. In Algeria Company gave $100,000 aid. $242,000 Corporate contribution in 2005. Management & Employees equally moved by devastation when

hurricane Katrina inflicted. This raised more then $500,000 for red cross.


(Shareholders Strategies)Arcelor-Mittal Steel

Company

Board independence

Equal rights among shareholders

Best in class shareholder dialogue


USA

Mex

ico

Sout

h Af

rica

Rom

ania

Pola

nd

Germ

any

Kaza

ksta

n

Cana

da

Czec

h

Trin

idad

Ukra

in

Alge

ria

Oth

ers0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Countries

Stee

l (T

ons)

(Steel Exports in Different countries)Arcelor-Mittal Steel

Company

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Arcelor-Mittal Steel Company (INDIAN Scenario)

18Narayana Business School of Management ,

Ahemdabad.


(Global Presence)

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Cuba

Mexico

France Germany

Romania

South Africa

Macedonia

Poland

Algeria

HQ

Arcelor-Mittal Steel Company

USA

Canada

Czech Republic

Bosnia

Italy

Ukraine

Kazakhstan

Brazil

HQ

= Netherland


14%

51%

35%

Years 2009 2010 2011 2012 2013Americas 11.2 10.4 9.7 24.3 35.6Europe 4.7 41.8 79.3 128.2 130.4

Asia & Africa 64.3 64.1 75.4 71.8 90.8Total 80.2 116.3 164.4 224.3 256.8

(Numbers of Employees in Thousands)

2003 2004 2006 2007 2008

(Employees by Global Regions)Arcelor-Mittal Steel

Company


35%

10%10%9%7%

6%

6%6% 5% 5%

Steel Producer’s in the WORLD

Arcelor MittalNippon SteelJFEPOSCOBaosteelU.S. SteelNucorTangshanCorus GroupRiva Group

( Numbers in Million Metric Tons )

(Steel Producers’ Ranking)Arcelor-Mittal Steel Company

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Revenue Net Income Assets Liabilities$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

8734

533

12148

6797

28,696

1,806

27,518

14,551

Income Statement

(Numbers in Millions Dollars)

2012 2013

(Income Growth)Arcelor-Mittal Steel Company


Awards and Achievements

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2008 “Padma Vibhushan”, Second Highest Indian Civilian Honor

2007 “Asian Business Award”, Middle East 2007 Bessemer Gold Medal, Institute of Materials, Minerals

& Mining 2006 “Person of the Year” – Financial Times 2004 “European Businessman of the Year” – Fortune

Magazine 1998 “Willy Korf Steel Vision Award” – American Metal

Market & Paine Weber’s World Steel Dynamics 1996 “Steel maker of the Year” – New Steel Organization,

USA


Mittal Steel believes that businesses should play a major role in supporting the communities in which they operate. Operations by Mittal Steel in the sense of social responsibility kind of support to: Kazakhstan South Africa USA Algeria India


Present Status of Lakshmi Mittal

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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.

No. 1 high quality steel producer with crude steel capacity with more than 70 million tons per annum.

Own steel making facilities in 16 countries spanning 4 continents.

Employs 224000 people spanning 49 different nationalities.


L N Mittal is a member of The Foreign Investment Council in Kazakhstan, The International Investment Council in South Africa,The World Economic Forum’s International Business

Council and The International Iron and Steel Institute’s Executive

Committee.

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


Qualities and Distinctiveness of Lakshmi Mittal

Hard workingOutstanding visionConvincing, Motivating and

guidingZeal and fiercenessCapacity to leadBravery Last but not Least……..A caring family man…..!!

Contact Address :

Lakshmi Mittal“Summer Palace”The Bishops AvenueHampstead Garden Suburb LondonN2 OAB Great BritainPhone : 0171 629 7988 Website : www.mittalsteel.com

“Summer Palace”

http://www.mittalsteel.com/

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