Presentation

on

Lakshmi Mittal
STEEL KING

Chairman
Chairman and
and Founder
Founder
of
of
Arcelor-Mittal
Arcelor-Mittal Steel
Steel Group
Group of
of Companies
Companies

Prepared By :-

VISHAL SOOD
YUVRAJ SINGH
Rajat mittal
Vinayak
Pranav sikka

Flow of Presentation
RESULT

Biography & Family Back Ground

Business Idea and Start-up
Business Strategies and Policies
Awards and Achievements
Present Status of Lakshmi Mittal
Message of His LIFE.

Biography & Family Back Ground

Indian 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.

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

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.

Continue.
Mittal beat Arcelor to the 4.8 billion dollar
deal
Worlds 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..
6

Introduction Arcelor-Mittal Empire

Head Quartered in Netherland

The worlds 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.

Hierarchy of ARCELOR-MITTAL STEEL COMPANY

Business Strategies and Policies

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

A)Business policies
B)HR strategy
C)Environmental strategy
D)Community strategy
E) Shareholders strategies

Arcelor-Mittal Steel
Company

(Business Polices)

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
10

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 expen

Focusing on global marketing efforts

Creating an a high performance culture

Be a responsible and corporate citizen

11

Arcelor-Mittal Steel
Company

(Environmental Strategies)

Greenhouse gas emissions

Waste, water resources and pollution
Research & Development of product sustainability

12

Arcelor-Mittal Steel
Company

(HR Strategies)

Communication
Common culture
Training and development
Mutual respect
Individual counseling

13

Arcelor-Mittal Steel
Company

(Community Strategies)

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.
.

14

Arcelor-Mittal Steel
Company

(Shareholders Strategies)

Board independence
Equal rights among shareholders
Best in class shareholder dialogue

15

Arcelor-Mittal Steel
Company

(Steel Exports in Diff erent countries)

16

rcelor-Mittal Steel Company (INDIAN Scenario)

17

Arcelor-Mittal Steel
Company

(Global Presence)

Germany
Germany

France
France

Poland
Poland

Czech
Czech Republic
Republic
Ukraine
Ukraine

Canada
Canada
Italy
Italy
USA
USA

Romania
Romania
HQ
HQ

Mexico
Mexico
Bosnia
Bosnia
Cuba
Cuba

Brazil
Brazil

Macedonia
Macedonia
Algeria
Algeria

South
South Africa
Africa

Kazakhstan
Kazakhstan
HQ
HQ

=
Netherla
nd
18

Arcelor-Mittal Steel
Company

(Employees by Global Regions)

Years

2009

2010

2011

2012

2013

Americas

11.2

10.4

9.7

24.3

35.6

Europe

4.7

41.8

79.3

128.2

130.4

Asia & Africa

64.3

64.1

75.4

71.8

90.8

Total

80.2

116.3

164.4

224.3

256.8

(Numbers of Employees in
Thousands)
14%

35%

51%

19

Arcelor-Mittal Steel
Company

(Steel Producers Ranking)

Steel Producers in the WORLD

Arcelor
Mittal
Nippon
Steel
6%

5%

6%

JFE

5%
35%

POSCO

6%
7%

Baosteel
9%

10%

U.S. Steel

10%

Nucor
Tangshan
Corus
Group
Riva Group

( Numbers in Million Metric Tons )

20

Arcelor-Mittal Steel
Company
Income
Statement
2012
2013
28,696

(Income Growth)

27,518

14,551
12148
8734

6797
533

1,806

(Numbers in Millions
21
Dollars)

Awards and Achievements

2008
Honor

Padma Vibhushan, Second Highest Indian Civilian

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
Webers World Steel Dynamics
1996

22

Steel maker of the Year New Steel Organization,

Present Status of Lakshmi Mittal

Worlds largest and most global steel company with shipment
of $49.2 million tones and revenue of over $28.1 billion 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.

23

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

24

ualities and Distinctiveness of Lakshmi Mittal

Hard working
Outstanding vision
Convincing, Motivating and
guiding
Zeal and fierceness
Capacity to lead
Bravery
Last but not Least..
A caring family man..!!
25