Lakshmi Mittal and the Growth of Mittal Steel

In 2007 a controversial merger between Mittal firebrand and Arcelor closed, creating ArcelorMittal. The merger was the brain child of Mittal CEO, Lakshmi Mittal and his son, Aditya. Under Lakshmis leadership, the family owned Mittal stain had grown from obscure origins in India to become the largest steel follow in the world. The story dates back to the early 1970s. At that time, the family-owned phoner was facing limited growth opportunities in India. Regulations constrained magnification opportunities, and Mittal was facing competition both from state-owned rival, Sail, and a private theme champion, Tata Steel. So Lakshmis farther financed his son, helping him set up a steel-making plant from scratch in Indonesia in 1975. To reduce cost in his Indonesian plant, Lakshmi did not smelt iron ore, yet instead directly purchased reduced iron pellets. His supplier of these pellets was a struggling state-owned steel firm in Trinidad. Impressed by Lakshmis success in Indonesia, in 1975 the Trinidadians asked him to turn their firm or so under a contract. Mittal set up another confederation to run the Trinidad plant. In 1989, after a successful turnaround, Mittal purchased the Trinidadian plant in its entirety.

Now the company that had been born in India had two major foreign operations, only when that was just the beginning. The planetary steel industry had been in a slump for a quarter of a century due to excess cognitive content and slow demand growth as substitute materials replaced steel in a number of applications, but Lakshmi saw chance in purchasing the assets of distressed companies on the cheap. His belief was that the orbicular steel industry was about to turn a corner, drive in large part not only by sustained economic growth in developed nations, but also by growing demand in fresh industrializing nations including China and his own native India. He saw whole sorts of opportunities for buying poorly run companies as they came up for sale, injecting them with capital, improving... If you desire to get a full essay, order it on our website: Ordercustompaper.com

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