2,81,000 over 60 countries
• Annual Sales Value above US $500million
• Export %
• Type of Business
“ This is not about
creating a giant ….its
about creating the
sustainability of the
-Lakshmi Niwas Mittal
• Birth Place- Shekhawati,Rajasthan
• On June 15,1950.
• Worked in his father‟s steel plant.
• Graduated from,
1950: Born in Shekhawati, Rajasthan India.
1976: He commenced his career with his father's steel
1996: Won the Steel Maker of the Year from New Steel.
2003: He established L.N.M. Institute of Information
Technology in Jaipur.
2004: Bestowed with the Entrepreneur of the Year and
European Businessman of the Year.
2006: He took over Arcelor, one of the largest steel
2007: The Padma Vibhushan was given by the Indian
government and the Grand Cross of Civil Merit by
the government of Spain.
2008: Forbes Lifetime Achievement Award was granted to
PERSONAL QUALITIES OF MITTAL
• Hard Working
• Out of Box Thinkinig
• Capacity to lead
• Outstanding Vision
EQUIPED TWO MAIN TRENDS
• Blast Furnace to Mini-Mills
• Cheaper Substitute for Steel
• Mittal set up his first international
steel factory in indonesia.
• Building a melt shop.
• Got a supplier of DRI called Iscott.
• Iscott is a $100,000 lose company.
• He contracted iscott for 5 years.
• “It was a very big break for me to
win that contract”
• Iscott become more profitable within 12 months.
• Trinidian government sold plant to Mittal.
• Previous failure of iscott is because of they were not
bothered about the company.
• This success was the sign of global expansion.
ISPAT INTERNATIONAL: BECOMING A GLOBAL
His main revitalized into mini mill or DRI plants.
Mittal goal is lowest cost and highest quality.
Aim is to Buy low-cost steel manufactures that could be
• Purchased sicartsa2 from mexican
government for $220million
• Market was bad ,company production was
less than 25%
• Technology adopted was failure and company
• Before purchasing the plant he stayed onsite for 6monts,with 19people and worked
for 9month period.
• Within three years plant produced profit.
• In 1996,it made 37% of the group overall
sales and contributed 63% of its operating
• In north america(1992) he signed to purchase the bethlehem
bar,rod and wire division in US.
• In 1993 deal had fallen.
• United steelworkers association decided not to conclude a
• Union maintaining that they had done best to reach an
agreement with ispat.
• In canada he purchases steel mill
from quebec government in 1994.
• Renamed as ispat sidbec.
• In two years he established a
strong presence in europe.
• Purchased state-run irish steel and
forming ispat hamburger stahlwerke
• In buying irish steel , ispat took on the factory debts of $51
million and he contributed $8 million capital.
• He made agreement for a further $34 million over next six
• Irish government contributed $30 million to the operation.
• Plant made beams for the construction industry from scrap
• 90% of sales was in european union.
Acquisition of karmet
Borrowed money from European bank
• Habitat for human
• Mittal champion trust
• Smile foundation
• Support in local social projects
ISPAT INTERNATIONAL - GOING PUBLIC
Shares on stock(a share, b share)
Ispact‟s biggest acquisition
LNM IIT project
EXPANSION INTO US
Achieve market leadership
KIP - benchmarketing
Irish International started in 1995
It was a 250,000 ton plant in Ireland
The company saw sales decline in majority of its division
It faces certain restrictions from EU
2001-toughest year of Ispat International and it orderly
Tony Blair, Britain‟s Prime Minister assisted Mittal a steel
plant in Romania.
Mittal donated $1,76,000 to Blair‟s governing party.
The british press pounced on both Mittal and Blair.
Letter to Nastase – Romanian Prime Minister-Blaire was
1. POLSKIE HUTY STALI IN POLAND IN 2004.
2. INTERNATIONAL STEEL GROUP IN OCT 2004.
3. ISCOR IN SOUTH AFRICA IN 2001.
4. NOVA HUT IN CZECH REPUBLIC IN 2003.
5. ISPAT INTERNATIONAL, LNM HOLDINGS, ISG
MERGED TO FORM MITTAL STEEL.
Struggling state – owned mills
First private enterprises to chase down foreign acquisitions
Key steps - lowering costs, cutting excess staff and new technology
Worldwide conference call
Manager‟s from SAIL .
GLOBAL COMPETITIVE ADVANTAGE
• Creating global customer base and being better able to
predict market trends
• Strong manager integration program
• Global purchasing power
STEEL AUTHORITY OF INDIA LIMITED-SAIL
• Top five highest profit earning corporate of the country.
• Annual production -13.5 million metric tons
• 14th largest steel producer in the world.
• Major plants owned by SAIL are located at
STEEL AUTHORITY OF INDIA LIMITEDSAIL
Chandra Shekhar Verma
Steel, flat steel products, long steel
products, wire products plates
48681 crores (US$7.4 billion) (2012)
3542 crores(US$540 million) (2012)
20425 crores (US$3.1 billion) (2011)
ORE BATTLE WITH MITTAL (STEEL MILL)
• SAIL plans to build a 10-million-tonne steel mill in
expectation of beating Arcelor Mittal for the rights to
control the nation‟s biggest iron ore reserves.
• Steel Authority of India Limited (SAIL) registered a 16%
growth in sales during the month of August ‟13.
• It has recorded its sales as 10.86 lakh tonnes of steel
products recently, which was 9.38 lakh tonnes in
corresponding period last year (CPLY).
• COIS was launched outlining the road map for achieving an
overall saving target of around Rs 5000 crores during the
next three years.
• Under this special initiative, following thrust areas have
been identified for continual cost reduction:
ᵴ Improving the operational efficiency by optimally
utilizing the available assets
ᵴ Quick stabilization of the newly commissioned units
ᵴReducing overhead costs and enhancing employee
CURRENT PLANS OF SAIL
SAIL has planned to,
Have synergy with the natural resources endowments of
Minimize damage to environment.
Optimize resources utilization.
Facilitate modern techniques in productivity.
Undertake R&D activities to introduce new technologies.
• Headquarters : Mumbai,Maharashtra,India.
• Marketing Headquarters : Tata Centre in Kolkata,West Bengal.
• Established by „Dorabji Tata‟ in 1907.
EXPANSION PLANS AND ACQUISITIONS
• Annual Production Capacity by 100 million tons by 2015.
• Plans to add 29 million tonnes of capacity through
• 31st March,2013-31.35% shares in Tata Steel.
AWARDS AND RECOGNITION
• Ranked India‟s 7th by “Fortune Magazine”.
• 7th Most Valuable Indian brand of 2013.
• Received “MAKE Award” for 2012.
THE WORLDWIDE STEEL INDUSTRY
•Production(as of 2012) - 1.5b tonnes /year.
•ArcelorMittal – Largest steel company.
•2 main customers
• Automotive manufacturers.
• Domestic appliance manufactures.
•The World Steel Association has indicated that global steel demand will
increase to 2.9% when compared to 1.2 percent last year.
•Demand for steel in other countries:
•INDIA - rise by 5.9 percent in 2013.
•US - rise by 8.4 percent in 2012.
•CHINA - rise by 3.1 percent in 2013.
In 35years, the growth of the industry is tremendous.
ArcelorMittal is the world‟s largest.
Production of 97.2 millions.
International Iron and Steel Institute (IISI) forecasted increment in
demand for steel from 1.32 billion tones (in 2010) to 1.62 billion tones (in
• Consumption is highly cyclical.
• Competition from substitute materials
• Major away or commodity value added production
Higher value added advantages
• Changing mind sets from regional to
• To maintain position in lowest cost
• Aiming at cost reduction, through.
Raw material and procurement
Increase labor productivity.
• Creating an high performance
• Focus in global market efforts.
• After 80s, demand for steel