Lakshmi Mittal, the CEO and Founder of the World's Largest STEEL company, ArcelorMittal (MT), is the world's 4th richest man for a reason.For a brief recap on Mr. Mittal's career + successes, please refer to the link below for Richard Wachman's excellent write-up :
http://www.guardian.co.uk/business/2008/jun/29/11
Interesting quotes from the the link above:
* 'About 10 years ago, Mittal was the visionary who saw that the fragmented international steel industry, serving local markets, was crying out for consolidation,' says a London-based metals analyst. 'Many firms were owned by national governments where the phrase "entrepreneurial flair" was missing from most people's vocabulary. True, some companies had been privatised, but the sector was poleaxed by chronic overcapacity, high indebtedness and steel prices that had hit rock bottom.'
* (Lakshmi Mittal) in 2006 took on and beat the European establishment when he acquired Arcelor (for $26.9 Billion Pounds or approx $54 Billion Dollars), the steel company that was created through the merger of firms from Spain, France, Luxembourg and Belgium. Its chairman, Guy Dolle, was famously forced to eat his words after controversially dismissing Mittal Steel as 'a company of Indians' paying with 'monkey money'. In the end, Arcelor's shareholders decided to sell out despite opposition to the deal from politicians including former French President Jacques Chirac.
* ArcelorMittal was the first company to produce more than 100 million tons of steel a year; that could double in a few years as Mittal goes on another buying spree, extending his empire to Africa, Australia and China...Today, ArcelorMittal employs 300,000 people in 60 countries, but accounts for 'only' 10 per cent of global output, so it could grow much bigger before attracting the attention of the anti-trust authorities. 'Certainly, there is the opportunity to grow,' Mittal said recently. 'To what size? You could go up to 150 or 200 million tons a year,' he said.
* Mittal's family owns a 44% stake in ArcelorMittal...his son, Aditya Mittal, a graduate from UPenn's Wharton Business School, is the company's CFO.
* ...Mittal is plotting his next move. He wants to secure deposits of coking coal and iron ore, which have doubled in price in the past four years and which are vital for the production of steel. He is in talks to acquire coal mines in Australia and Russia, while expansion elsewhere means that ArcelorMittal now meets 45% of its iron ore requirements from its own supplies. Mittal has also invested in shipping and rail to cut transport costs. The only part of the supply chain that remains outside his control is oil and gas.
* At the age of 26, Lakshmi set up his first steel mill, in Indonesia, producing 26,000 tons and generating annual profit of $1m
* Mittal's Kazakhstan move 'propelled the company into the 'big league of international steelmakers'...In the clapped-out former Soviet Republic, larger than Western Europe and on the brink of bankruptcy, Mittal bought the country's Karmet Steel works in Temirtau for the knockdown price of $400m. Kazakhstan shared a border with China, where demand for steel was about to take off, and the acquisition would soon pay for itself many times over
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* Somewhat related, Lakshmi Mittal was recently elected to Goldman Sachs (GS) Board of Directors as an independent director:
http://ap.google.com/article/ALeqM5j5fNg5YCCfmnGePlYUGRlJ5jGw2gD91JTVP80
Goldman Sachs CEO, Lloyd Blankfein on Mittal joining GS's board: "Lakshmi Mittal has reshaped a global industry and, in the process, has engineered new modes of production, identified unrealized value and sparked remarkable growth...He has a keen understanding of the global economy, having operated in virtually every corner of the world. Lakshmi's experience, judgment and independent thinking represent an important addition to our board of directors, and will be of tremendous value to our people, our shareholders and our clients."
Data Courtesy: Richard Wachman + The AP
Full Disclosure: I own shares of MT and GS.
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