Encyclopaedia Britannica's editors oversee subject areas in which they have extensive knowledge, whether from years of experience gained by working on that content or via study for an advanced degree. They write new content and verify and edit content received from contributors.
Lakshmi Mittal is an Indian businessman who was CEO (2006â21) of ArcelorMittal, the worldâs largest steelmaking company.
In the 1960s Mittalâs family moved to Calcutta (Kolkata), where his father operated a steel mill. Mittal worked at the mill while studying science at St. Xavierâs College. After graduating (1970) he served as a trainee at the mill, and in 1976 he opened his own steel mill in Indonesia. He spent more than a decade learning how to run it efficiently. In 1989 Mittal purchased the beleaguered state-owned steel works in Trinidad and Tobago, which had been losing huge sums of money. A year later that facility had doubled its output and had become profitable. He used a similar formula for success in a series of acquisitions all around the world, purchasing failing (mostly state-run) outfits and sending in special management teams to reorganize the businesses.
Mittalâs business philosophy emphasized consolidation in an industry that had become weak and fragmented. Although demand for steel remained high, smaller steel companies had been unable to strike competitive deals with their major clients, notably automakers and appliance manufacturers. Mittalâs company, however, controlled about 40 percent of the American market for the flat-rolled steel used to make cars, which allowed the giant steelmaker to negotiate more favourable prices. In 2004 Mittal merged his companies, Ispat International and LNM Holdings, and acquired Ohio-based International Steel Group. The newly created company, Mittal Steel Co. NV, emerged from the deal as the worldâs largest steelmaker. Two years later Mittal oversaw another merger when Mittal Steel joined with Arcelor to form ArcelorMittal. Mittal served as CEO of the joint company until 2021, when he stepped down. However, he remained executive chairman.
Mittal, who was sometimes described as being media shy, often made news for his notable expenditures, including a record ÂŁ70 million ($128 million) for a 12-bedroom home in London and an estimated $60 million for his daughterâs 2004 wedding in Paris. His donation of ÂŁ125,000 (about $180,000) to the Labour Party in 2001 created controversy when it was learned that Prime Minister Tony Blair had helped Mittal purchase a steel company in Romania even though Mittalâs firms backed a U.S. tariff opposed by British steel producers.
