Lakshmi Mittal

Lakshmi Niwas Mittal
Born 2 September 1950 (1950-09-02) (age 60)
Sadulpur, Rajasthan, India
Residence London, United Kingdom
Ethnicity Indian
Citizenship India
Alma mater St. Xavier's College, Calcutta[4]
Occupation Chairman & CEO of ArcelorMittal
Net worth increaseUS$28.7 billion (2010)[1]
Religion Hindu
Children Vanisha Mittal
Aditya Mittal

Lakshmi Niwas Mittal (Devanagari:लक्ष्मी मित्तल); born 2 September 1950)[2] is an Indian[3][4][5][6][7] steel tycoon and the chairman and chief executive officer of ArcelorMittal.

As of July 2010, Mittal is the richest man in Europe[8] and the fifth richest in the world with a personal wealth of US$28.7 billion or £19.3 billion.[9] The Financial Times named Mittal Person of the Year in 2006. In May 2007, he was named one of the "100 Most Influential People" by Time magazine.

He serves as a non-executive director of Goldman Sachs, EADS and ICICI Bank[10] and is presently the vice chairman of the World Steel Association. Mittal is a member of the Foreign Investment Council in Kazakhstan, the International Investment Council in South Africa, the World Economic Forum’s International Business Council and the International Iron and Steel Institute’s Executive Committee.[11] He is a member in the Advisory Board of the Kellogg School of Management and is part of St. Xavier's College, Calcutta Alumni Association, London Chapter.

Contents

Early life

He was born in Sadulpur village, in the Churu district of Rajasthan, India. Lakshmi Nivas Mittal was born into a business family of Rajasthan. He comes from a wealthy Indian steel family - his father, Mohan Lal Mittal, ran a steel business, Nippon Denro Ispat. Until the 1990s, the family's main assets in India were a cold-rolling mill for sheet steels in Nagpur and an alloy steels plant near Pune. Today, the family business, including a large integrated steel plant near Mumbai, is run by Lakshmi's brothers, Pramod and Vinod, but Lakshmi has no connection with it.[12]

Mittal started his career working in the family's steelmaking business in India, and in 1976, when the family founded its own steel business, he set out to establish its international division, beginning with the buying of a run-down plant in Indonesia. Shortly afterwards he married Usha, the daughter of a well-to-do moneylender. In 1976, due to differences with his father, mother and brothers, he branched out on his the LNM Group, and he has been responsible for the development of its businesses ever since. Mittal Steel is a global steel producer with operations in 14 countries.

Mittal pioneered the development of integrated mini-mills and the use of direct reduced iron or "DRI" as a scrap substitute for steelmaking and led the consolidation process of the global steel industry. Mittal Steel is the largest steelmaker in the world, with shipments of 42.1 million tons of steel and profits of over $22 billion in 2004.

Mittal was awarded Fortune magazine's "European Businessman of the Year 2004" and also "Steelmaker of the Year" in 1996 by New Steel, and the "Willy Korf Steel Vision Award" in 1998, for outstanding vision, entrepreneurship, leadership and success in global steel development from American Metal Market and PaineWeber’s World Steel Dynamics. In 2002, he was involved in a political scandal with British Prime Minister Tony Blair, when a donation he made to the Labour party led to Blair's intervention in a business deal favoring Mittal. It was announced later that he donated £2 million to the Labour Party.Also conducting charitable activity at his home town

Family

Lakshmi Mittal's father is Mohan Lal Mittal and his brother is Pramod.

London 2012 Olympics and Paralympic Games

ArcelorMittal, led by Chairman and CEO Lakshmi Mittal, will fund £16 million of the £19.1 million project, with the outstanding £3.1 million provided by the London Development Agency. As such, the sculpture not only represents a significant cultural investment - the largest single artwork ever commissioned for any Olympiad - but will also make a significant financial contribution to the long-term regeneration of East London.[13]

The ArcelorMittal Orbit, the largest artistic commission in the world, will harness state-of-the-art engineering and architectural techniques. Constructed with steel provided by ArcelorMittal, the sculpture will consist of a continuous looping lattice of tubular steel and offer unparalleled view of the entire Olympic Park and London's skyline from a special viewing platform.[14]

Personal and growing wealth

In 2010, Forbes magazine listed Mittal the world's fifth richest person with personal wealth of US$28.7 billion. His wealth has grown by over US$9 billion compared to 2009 and is up 3 places in the Forbes ranking.[15]

In 2009, Forbes magazine listed Mittal the world's eighth richest person with personal wealth of US$19.3 billion.[16]

In 2008, Mittal was reported to be the fourth wealthiest person in the world, and the wealthiest in Asia, by Forbes Magazine (up from 61st richest in 2004) up one place since a year before. The Mittal family owns a controlling majority stake in ArcelorMittal, the world's largest steel company.[17]

Causes and charity

After witnessing India win only one medal, bronze, in the 2000 Summer Olympics, and one medal, silver, at the 2004 Summer Olympics, Mittal decided to set up Mittal Champions Trust with US$9 million to support 10 Indian athletes with world-beating potential.[18] In 2008, Mittal awarded Abhinav Bindra with Rs. 1.5 Crore, for getting India its first individual Olympic gold medal in shooting.

For Comic Relief 2007, he matched the money raised (~£1 million) on the celebrity special BBC programme, The Apprentice.

ArcelorMittal also has a very active CSR program under which it sets out its path to produce Safe Sustainable Steel. The company also operates the ArcelorMittal Foundation, which provides support to many different community projects around the world in the countries where ArcelorMittal operates.

Criticism and allegations

PHS

Lakshmi Mittal successfully employed Marek Dochnal's consultancy to influence Polish officials in the privatization of PHS steel group, which was Poland's largest. Dochnal was later arrested for bribing Polish officials on behalf of Russian agents in a separate affair.[19]

In 2007, Polish government said it wants renegotiate the 2004 sale to Arcelor Mittal.[20]

Slave-labour allegations

Employees of Mittal have accused him of "slave labour" conditions after multiple fatalities in his mines.[21] During December 2004, twenty-three miners died in explosions in his mines in Kazakhstan caused by faulty gas detectors.

The Mittal Affair: "Cash for Influence"

Controversy erupted in 2002 as Plaid MP Adam Price exposed the link between UK prime minister Tony Blair and Mittal in the Mittal Affair, also known as 'Garbagegate' or Cash for Influence.[22][23][24] Mittal's LNM steel company, registered in the Dutch Antilles and maintaining less than 1% of its 100,000 plus workforce in the UK, sought Blair's aid in its bid to purchase Romania's state steel industry.[24] The letter from Blair to the Romanian government, a copy of which Price was able to obtain, hinted that the privatisation of the firm and sale to Mittal might help smooth the way for Romania's entry into the European Union.[22]

The letter had a passage in it removed just prior to Blair's signing of it, describing Mittal as "a friend."[25]

Queens Park Rangers

Recently, Mittal had emerged as a leading contender to buy and sell Barclays Premiership clubs Wigan and Everton. However on 20 December 2007 it was announced that the Mittal family had purchased a 20 per cent shareholding in Queens Park Rangers football club joining Flavio Briatore and Mittal's friend Bernie Ecclestone.[26] As part of the investment Mittal's son-in-law, Amit Bhatia, took a place on the board of directors. The combined investment in the struggling club sparked suggestions that Mittal might be looking to join the growing ranks of wealthy individuals investing heavily in English football and emulating other similar benefactors such as Roman Abramovich.[27]

On 19 February 2010, Flavio Briatore resigned as QPR chairman, and sold further shares in the club to Mittal, making Mittal the single largest shareholder.[28]

Environmental damage

Mittal purchased the Irish Steel plant based in Cork from the government for a nominal fee of £1. Three years later in 2001, it was closed, leaving 400 people redundant. Subsequent environmental issues at the site have been a cause for criticism. The Government tried to sue in the High Court to have him pay for the clean-up of Cork Harbour but failed. The clean up was expected to cost €70m.[29]

Personal life

He presently lives in Kensington, London. His residence at 18-19 Kensington Palace Gardens which was purchased from Formula One boss Bernie Ecclestone in 2004 for £57 million (US$128 million), making it the world's most expensive house at the time.[30] Mittal's house in Kensington, London is decorated with marble taken from the same quarry that supplied the Taj Mahal. The extravagant show of wealth has been referred to as the "Taj Mittal".[31] It has 12 bedrooms, an indoor pool, Turkish baths and parking for 20 cars.[32]

Mittal bought No.6 Palace Greens, Gardens, formerly owned by financier Noam Gottesman, at £117 million for his son Aditya Mittal.

Mittal bought No.9a Palace Greens, Kensington Gardens, formerly the Filipino embassy, at £70 million in 2008 for his daughter Vanisha Mittal Bhatia.

Mittal owns three prime properties collectively worth £500 million on the "Billionaire's Row" at Kensington Palace Gardens.

A property at 21 Curzon Street in Mayfair was purchased as a wedding present for his daughter Vanisha Mittal with Amit Bhatia and was kitted out at a cost of £8m by Candy and Candy. The 26,000-square-feet house has an attached mews house which contains a full-size squash court and a night club.

Mittal also owns a house called Summer Palace at 46B, The Bishops Avenue, which is dubbed as "Millionares Row" and is reportedly for sale at £40 million.

In 2005, he also bought a colonial bungalow for $7.5 million at No.22, Aurangzeb Road in New Delhi, India, the most exclusive street in the city occupied by embassies and millionaires, and rebuilt it as a house.

Honors and awards

Bibliography

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See also

References

  1. ↑ Forbes topic page on Lakshmi Mittal Forbes.com. Accessed April 2010.
  2. ↑ Lakshmi N. Mittal biography at Mittal Steel
  3. ↑ http://www.forbes.com/static/bill2005/LIRR0YG.html?passListId=10&passYear=2005&passListType=Person&uniqueId=R0YG&datatype=Person
  4. ↑ http://www.nndb.com/people/222/000094937/
  5. ↑ http://business.timesonline.co.uk/tol/business/specials/rich_list/rich_list_2009/article6139333.ece
  6. ↑ http://www.arabianbusiness.com/7660-forging-the-future-
  7. ↑ http://www.rediff.com/money/2006/apr/28mittal.htm
  8. ↑ Forbes topic page on Lakshmi Mittal Forbes.com. Accessed April 2010.
  9. ↑ Forbes topic page on Lakshmi Mittal Forbes.com. Accessed April 2010.
  10. ↑ IHT (2008)Mittal joins Goldman Sachs board Retrieved November 1, 2008.
  11. ↑ EADS NV (2009)EADS N.V. Retrieved June 30, 2009.
  12. ↑ http://www.managementtoday.co.uk/search/article/421099/lakshmi-mittals-ring-steel/
  13. ↑ ArcelorMittal (2010)ArcelorMittal Retrieved 3 April 2010.
  14. ↑ ArcelorMittal (2010)ArcelorMittal Retrieved 3 April 2010.
  15. ↑ Forbes topic page on Lakshmi Mittal Forbes.com. Accessed April 2010.
  16. ↑ Forbes topic page on Lakshmi Mittal Forbes.com. Accessed April 2010.
  17. ↑ "Mittal announces bid for rival Arcelor". London: The Guardian. 27 January 2006. http://business.guardian.co.uk/story/0,,1696397000,00.html. 
  18. ↑ DNA - Sport - Mittal’s Olympic dream is worth Rs 40 crore - Daily News & Analysis
  19. ↑ How tycoon went from polo lawns to Polish jail The Times November 27, 2004
  20. ↑ [1]
  21. ↑ UK’s richest man in slave labour row
  22. ↑ 22.0 22.1 Plaid reveals Labour steel cash link Monday, 11 February 2002, extracted 11-01-07
  23. ↑ Lakshmi Mittal, steel mill millionaire Thursday, 14 February 2002, extracted 11-01-07
  24. ↑ 24.0 24.1 Q&A: 'Garbagegate' Thursday, 14 February 2002 extracted 11-01-07
  25. ↑ Q&A: 'Garbagegate' 14 February 2002, extracted 11-01-07
  26. ↑ "QPR secure huge investment boost". BBC (London). 20 December 2007. http://news.bbc.co.uk/sport1/hi/football/teams/q/qpr/7154202.stm. Retrieved 2007-12-20. 
  27. ↑ Lakshmi Mittal pushes QPR up the rich list by Kevin Garside, Daily Telegraph, 21 December 2007
  28. ↑ "Briatore resigns as QPR chairman". Reuters. http://in.reuters.com/article/motorSportsNews/idINLDE61I27B20100219. Retrieved 2010-02-20. 
  29. ↑ [2]
  30. ↑ "$128M Spend for London House". MSNBC. 12 April 2004. http://www.msnbc.msn.com/id/4722789/. 
  31. ↑ Takeover Week: Billionaires Row (Rob) - Google Sightseeing
  32. ↑ [3]
  33. ↑ 33.0 33.1 http://www.eads.com/1024/en/corporate_governance/Board_of_Directors/members/Mittal.html EADS N.V.

External links