Lakshmi Mittal: The Steel King Who Revolutionized The Rules of the Steel Industry

An Indian-born business tycoon, Lakshmi Mittal, turned the steel industry into a global empire. Mittal was born on July 15, 1950, in Sadulpur, Rajasthan, where his father made his fortune in steel. 

Mittal was born into a modest family background, but his visionary leadership and strategic acquisitions made him one of the world's richest men. With a network covering many continents, he founded ArcelorMittal, the world's largest steelmaking company. 

In this StartupTalky article, we'll explore the fascinating history of Lakshmi Mittal, the obstacles he overcame, and what his legacy in the steel industry is today.

Lakshmi Mittal - Biography

Lakshmi Mittal - Early Life and Education
Lakshmi Mittal - Career
Lakshmi Mittal - Personal Life
Lakshmi Mittal - Investments
Lakshmi Mittal - Philanthropy
Lakshmi Mittal - Controversies
Lakshmi Mittal - Awards and Recognition
Lakshmi Mittal - Interesting Facts

Lakshmi Mittal - Early Life and Education

Lakshmi Mittal, the son of a prominent Marwari businessman named Mohanlal Mittal, was born on July 15, 1950, in Sadulpur, Rajasthan. His father, Mohanlal Mittal, was a well-known businessman in India who ran a small steel company, Nippon Denro Ispat. Lakshmi had grown up in a family that had strong ties to the steel industry and already knew something about business, which would come to shape his career.

Mittal studied at Shri Daulatram Nopany Vidyalaya in Calcutta (now Kolkata) from 1957 to 1964, where he passed his primary and secondary education. After completing his schooling there, Mittal went on to earn a Bachelor of Commerce (B.Com.) degree at St. Xavier’s College in Kolkata, one of India’s premier institutions. 

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Lakshmi Mittal - Career

Mittal’s ambitions always extended beyond India’s borders, and in the 1970s, when the Indian steel industry was heavily regulated, he sought growth opportunities overseas. ‘PT Ispat Indo’ was his first independent steel plant in Indonesia, marking the beginning of the Mittal Steel empire, showcasing Mittal’s willingness to take risks and make a bold move. Mittal didn’t only expand his business into the Indonesian market but also set the firm foundation for future acquisitions.

In the following years, Mittal was driven by an insatiable appetite for growth and started to buy up distressed steel mills around the globe. ‘Ispat International’ was a rapidly growing company, and Mittal meticulously scouted for opportunities in Trinidad, Mexico, and Romania, integrating these entities into his company. These acquisitions were a strategic move by Mittal to combine the strengths of each mill and optimise the efficiencies in the enterprise. Mittal knew the market inside out, and every acquisition was a reflection of his understanding of market dynamics and ability to make struggling operations profitable.

In 2004, Lakshmi Mittal brought his empire together by merging ‘Ispat International’ with ‘LNM Holdings’ and the ‘U.S.-based International Steel Group’. The well-thought move led to the creation of ‘Mittal Steel Company’, which became a leader in steelmaking, becoming the world’s leading steelmaker in a short time. Mittal’s ambition kept growing, and he eyed the European market. In 2006, he engineered an audacious merger with Arcelor, a giant European steel company, which became ArcelorMittal. This merger made him a dominant force in the industry, with ArcelorMittal possessing a large share of global steel production.

Mittal’s mastery of mergers and acquisitions is only part of the reason behind his success; he is also steadfast in his commitment to innovation. ‘ArcelorMittal’ invested heavily under his guidance in advanced technologies and sustainable practices. The company’s product line was diversified to include hot-rolled and cold-rolled steel, galvanized steel, and welted pipes, among other products. 

The financial resilience of the company is reflected in its ‘ArcelorMittal’s’ financial result by the third quarter of 2023, with EBITDA of $1.9 billion and net income of $1.2 billion. The company’s financial prowess was based on a net debt reduction of $4.3 billion, a result of the company’s strategic financial management and optimized portfolio.

Beyond corporate successes, Mittal has been leading ArcelorMittal in developing future leadership. His son, Aditya Mittal, has taken over as CEO, making sure that there is a smooth transition and continuity in leadership. 

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Lakshmi Mittal - Personal Life

Lakshmi Mittal is a man who has a very close family commitment and exclusivity. Mittal is married to Usha Mittal, and the couple have two children, a son named Aditya and a daughter named Vanisha. 

Mittal has two brothers, Pramod Mittal and Vinod Mittal, and a sister, Seema Lohia, married to prominent Indonesian businessman Sri Prakash Lohia. The family bond has bridged both the personal and professional spheres, forming a support system that spans across continents. 

Mittal is also famous for his luxurious lifestyle, having made headlines for high-profile expenditures, including a $128 million London home and a $60 million Paris wedding for his daughter.

Lakshmi Mittal - Investments

Lakshmi Mittal’s investments mirror his strategic vision: an unrelenting dedication to exclusivity, luxury, and legacy. Among Mittal’s notable acquisitions is the grand mansion at 18-19 Kensington Palace Gardens in London. This residence was the world’s most expensive home acquisition of 2004, purchased for £67 million from former Formula One executive Bernie Ecclestone. Taj Mittal, as it is known, is decorated with marble from the same quarry as the Taj Mahal, a reference to Mittal’s determination to have the best of the best. As a powerful symbol of his success, the property has twelve bedrooms, a luxurious indoor pool and Turkish baths, and parking for twenty vehicles.

In 2008, Mittal brought No. 9A Palace Greens in Kensington Gardens at £70 million as a wedding present for his daughter, Vanisha Mittal, which was formerly the Philippines Embassy. The acquisition was very much in line with Mittal’s emphasis to both build a financial and a family legacy, as seen in the company’s preference for securing prestigious real estate in London’s most exclusive neighbourhoods. 

Mittal has also invested in India’s prestigious real estate market, in addition to his London holdings. He bought a colonial bungalow at $30 million on Dr. APJ Abdul Kalam Road in New Delhi, which was comprehensively renovated to meet Mittal's refined tastes among the high-profile residents, diplomats, and billionaire estates. 

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Lakshmi Mittal - Philanthropy

Mittal’s legacy goes beyond his accomplishments in the steel industry, as he established the LNM Foundation, a platform for social responsibility that aims to improve education, healthcare, and the development of the community.

Mittal’s philanthropic efforts include a lot of social causes through the LNM Foundation. It shows his belief in the role of corporate responsibility in the fight against societal challenges and his dedication to giving back.

Under the LNM Foundation, Mittal awarded Abhinav Bindra for winning the first Olympic gold medal for India with INR 1.5 crore to support Indian athletes on a global level. He has also opened educational institutes in India like LNMIIT in Jaipur and the Usha Mittal Institute of Management in New Delhi. 

In January 2018, Mittal donated to Great Ormond Street Hospital to open Mittal Children’s Medical Center to treat underprivileged children and kids with chronic illnesses. Apart from this, they have made substantial donations to UNICEF, Harvard University, and the PM Modi Care Fund during COVID-19. 

Lakshmi Mittal - Controversies

Although regarded as one of the most respected entrepreneurs to have transformed the global steel industry, Lakshmi Mittal has been embroiled in several controversies over the years. A lot of these controversies are around political donations, environmental issues, labour practices, and business practices that have been in the spotlight.

Influence in the UK

A billionaire steel magnate and top donor to Harvard, Lakshmi Mittal has a complex and controversial reputation. But ArcelorMittal, his global enterprise, has been in the spotlight for a series of high-profile controversies. In 2001, Mittal tried to buy a state-owned steel plant in Romania, which caused one major incident. Then UK Prime Minister Tony Blair allegedly sent a letter of support to the Romanian government, which many believe was instrumental in getting the deal for Mittal. The financial backing of Blair's Labour Party by Mittal prompted scrutiny and allegations of political favouritism.

Poor Labour Practices

In Kazakhstan alone, Mittal’s operations have come under further controversies for poor labour practices. Over a hundred workers died between 2004 and 2010 in Mittal's Kazakh facilities, according to critics who say substandard safety conditions were to blame. Environmental issues have also been a problem, especially in the city of Temirtau, where a large ArcelorMittal plant is accused of pollution so bad that in 2018, residents complained of black snow clogging with pollutants.

Political Donations

Critics of Mittal's philanthropy have pointed to his generous donation to Harvard's Lakshmi Mittal and Family South Asia Institute as inconsistent with the alleged ethical problems associated with his business practices. Mittal’s donations are used to support academic initiatives, but critics say such acts of philanthropy are always employed to muddy or cover up questions about his business record. It’s a broader public that is still worried about Mittal’s far-reaching links to political and economic circles, the ethical aspects of his wealth, and his membership in prestigious institutions like Harvard.

Criticism Over Layoffs and Closure

In 2006, ArcelorMittal's CEO, Lakshmi Mittal, was a controversial figure in France after buying European steel giant Arcelor. Even though Mittal’s company had a lot of European operations, ArcelorMittal was constantly criticized as being ‘the Indian group’, often taking the fall for layoffs and economic troubles. That controversy reached its peak when ArcelorMittal decided to close two furnaces in Florange, putting 629 workers out of a job. Mittal was a 'predator' during a period of rising unemployment and falling steel demand; Industrial Recovery Minister Arnaud Montebourg even threatened to nationalize. The shutdown was economic, but the tone of the criticism was personal and xenophobic, adding to the debate over foreign ownership in French industries.

Business Practices

During his career, Lakshmi Mittal has been embroiled in a number of controversies. In 2003, he hired consultant Marek Dochnal to influence Polish officials during the privatization of the PHS steel group, which was later scrutinized and led to a 2007 renegotiation attempt by the Polish government. Mittal's company has also been accused of 'slave labour,' and has been severely criticized for the conditions of its labour force.

Lakshmi Mittal - Awards and Recognition

• Padma Vibhushan in the year 2008
• Forbes Lifetime Achievement 2008
• 2007 Fellowship Award by King's College London
• Bessemer Gold Medal in 2007
• 2004 European Businessman of the Year
• 2004 Entrepreneur of the Year by The Wall Street Journal
• 8th honorary Willy Korf Steel Vision Award 2004
• 1996 Steel Maker of the Year
• Ranked 15th on Forbes list of India’s 100 richest tycoons in October 2024

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Lakshmi Mittal - Interesting Facts

• Lakshmi Mittal was born in the village of Sadulpur, where there was no electricity until the 1960s.
• In a house with 25 people, he grew up in a modest household and slept on the floor on mattresses.
• Mittal bought a government-owned steel plant in Trinidad and Tobago, which was losing $1 million a day in 1989. Even international experts had failed to achieve this; it became a profitable enterprise under his leadership.
• He also brought his business overseas, buying several steel companies in Canada, Ireland, Germany, and other countries, including the country’s third-largest steel producer, Sicartsa, for $220 million in 1992.
• In 1995, Mittal also acquired the state-owned blast furnace steel plant in Kazakhstan, which, renamed Ispat Karmet, solidified his global steel empire even further.
• In 1996, Mittal was given the title of “Steel Maker of the Year” by New Steel Magazine.
• In 1998, he received the prestigious Willy Korf Steel Vision Award for his outstanding contributions to the steel industry.
• According to Forbes, Mittal was the third richest person in the world in 2005.
• In 2007, he was named one of Time magazine’s ‘100 Most Influential People.’
• In 2008, Mittal was awarded the Forbes Lifetime Achievement Award for his great contribution.

FAQ

Who is the CEO of ArcelorMittal?

Aditya Mittal is the CEO of ArcelorMittal. Lakshmi Mittal, his father, serves as the Executive Chairman.

Who is ArcelorMittal owned by?

ArcelorMittal is primarily owned by the Mittal family, with Lakshmi Mittal and his family holding a significant share of the company.

Who is the steel king of the world?

Lakshmi Mittal is often referred to as the "Steel King of the World" due to his leadership in the global steel industry and his role in building ArcelorMittal into the world's largest steel-producing company.