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Lakshmi Mittal

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Lakshmi Mittal
Mittal in 2013
Born
Lakshmi Niwas Mittal

(1950-06-15) 15 June 1950 (age 74)[1][2]
Sadulpur, Rajasthan, India
NationalityIndian
Alma materSt. Xavier's College, Kolkata, (B.Com.)[1]
Occupation(s)Chairman & CEO of
ArcelorMittal
Owner of Karrick Limited[3]
Co-Owner of
Queens Park Rangers F.C.
Known forAcquiring and turning around sick steel-mills, King of Steel,[4] Steel tycoon
Board member ofGoldman Sachs
EADS
SpouseUsha Mittal
ChildrenVanisha Mittal
Aditya Mittal
AwardsPadma Vibhushan (2008)[5]

Lakshmi Niwas Mittal pronunciationⓘ; (born 15 June 1950) is an Indian steel magnate,[7] based in the United Kingdom. He is the chairman and CEO of ArcelorMittal, the world’s largest steelmaking company. Mittal owns 38% of ArcelorMittal and holds a 34% stake in Queens Park Rangers F.C..

In 2007, Mittal was considered to be the richest Hindu and Asian person in Europe.[8][9] Despite being the eighth wealthiest man in Britain in 2002, he does not hold British citizenship.[10] He was ranked the sixth richest person in the world by Forbes in 2011, but dropped to 82nd place in March 2015.[6] In spite of the drop, Forbes estimated that he still had a personal wealth of US$16 billion in October 2013.[6] He is also the 57th "most powerful person" of the 72 individuals named in Forbes' "Most Powerful People" list for 2015.[11] His daughter Vanisha Mittal's wedding was the second most expensive in recorded history.[12]

Mittal has been a member of the board of directors of Goldman Sachs since 2008,[13] and is also member of the board of directors of the Airbus Group ( formerly known as European Aeronautic Defence and Space Company (EADS)).[14] He sits on the World Steel Association's executive committee,[15] and is a member of the Indian Prime Minister’s Global Advisory Council,[15] the Foreign Investment Council in Kazakhstan,[15] the World Economic Forum’s International Business Council,[15] and the Presidential International Advisory Board of Mozambique.[15] He also sits on the advisory board of Northwestern University's Kellogg School of Management in the United States[15] and is a member of the board of trustees of the Cleveland Clinic.[15]

In 2006 The Sunday Times named him "Business Person of 2006", the Financial Times named him "Person of the Year", and Time magazine named him "International Newsmaker of the Year 2006".[15] In 2007, Time magazine included him in their "100 most influential persons in the world".[16]

Early life and career

Mittal studied at Shri Daulatram Nopany Vidyalaya from 1957 to 1964. He graduated from St. Xavier's College, Calcutta, with a B.Com degree from the University of Calcutta. His father, Mohan Lal Mittal, ran a steel business, Nippon Denro Ispat.[17] In 1976, due to the curb of steel production by Indian government, the 26-year-old Mittal opened his first steel factory PT Ispat Indo in Sidoarjo, East Java, Indonesia.[18][19] 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 Pramod and Vinod, but Lakshmi has no connection with it.[20]

Philanthropy

Sports

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 $9 million to support 10 Indian athletes with world-beating potential.[21] In 2008, Mittal awarded Abhinav Bindra with Rs. 1.5 Crore (Rs. 15 million), for getting India its first individual Olympic gold medal in shooting. Arcelor Mittal Also financed the construction of ArcelorMittal Orbit for 2012 Summer Olympics.[citation needed]

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

Education

In 2003, the Lakshmi Niwas Mittal and Usha Mittal Foundation and the Government of Rajasthan partnered together to establish a university, the LNM Institute of Information Technology (LNMIIT) in Jaipur as an autonomous non-profit organization.[citation needed]

In 2009, the Foundation along with Bharatiya Vidya Bhavan founded the Usha Lakshmi Mittal Institute of Management in New Delhi.[citation needed]

SNDT Women's University renamed the Institute of Technology for Women (ITW) as Usha Mittal Institute of Technology after a large donation from the Lakshmi Niwas Mittal Foundation.[citation needed]

Medical

In 2008 the Mittals made a donation of £15 million to Great Ormond Street Hospital in London, the largest private contribution the hospital had ever received. The donation was used to help fund their new facility, the Mittal Children's Medical Centre.[22]

Criticism and allegations

PHS

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.[23]

In 2007, the Polish government said it wanted to renegotiate the 2004 sale to Arcelor Mittal.[24]

Slave-labour allegations and questionable safety records

Employees of Mittal have accused him of "slave labour" conditions after multiple fatalities in his mines.[25] 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"

In 2002 Plaid Cymru MP Adam Price obtained a letter written by Tony Blair to the Romanian Government in support of Mittal's LNM steel company, which was in the process of bidding to buy Romania's state-owned steel industry.[26][27][28] This revelation caused controversy, because Mittal had given £125,000 to the British Labour Party the previous year. Although Blair defended his letter as simply "celebrating the success" of a British company, he was criticised because LNM was registered in the Dutch Antilles and employed less than 1% of its workforce in the UK.[28] LNM was a "major global competitor of Britain's own struggling steel industry".[29]

Blair's letter hinted that the privatisation of the firm and sale to Mittal might help smooth the way for Romania's entry into the European Union.[26] It also had a passage, removed just prior to Blair's signing of it, describing Mittal as "a friend".[28]

Queens Park Rangers

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 percent shareholding in Queens Park Rangers football club joining Flavio Briatore and Mittal's friend Bernie Ecclestone.[30] 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 similar benefactors such as Roman Abramovich.[31]

On 19 February 2010, Briatore resigned as QPR chairman, and sold further shares in the club to Ecclestone, making Ecclestone the single largest shareholder.[32]

Environmental damage

Mittal purchased the Irish Steel plant based in Cork, Ireland, from the government for a nominal fee of £1 million. 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 €70 million.[33] In 2014, Mittal denied that there was any truth in the rumour that he made a bid to buy "Blencathra" mountain lying in Northern fells mountain range in Britain's Lake district. [34]

Personal life

Mittal's residence, 18–19, Kensington Palace Gardens, London.

Mittal was born on 15 June 1950.[1][2] His residence at 18-19 Kensington Palace Gardens—which was purchased from Formula One boss Bernie Ecclestone in 2004 for £67 million (US$128 million)—made it the world's most expensive house at the time.[35] The house is decorated with marble taken from the same quarry that supplied the Taj Mahal.[36] The extravagant show of wealth has been referred to as the "Taj Mittal".[37] It has 12 bedrooms, an indoor pool, Turkish baths and parking for 20 cars.[38] He is a lacto-vegetarian.[39]

Mittal bought No. 9A Palace Greens, Kensington Gardens, formerly the Philippines Embassy, for £70 million in 2008 for his daughter Vanisha Mittal who is married to Amit Bhatia, a businessman and philanthropist. Being a vegetarian, Mittal threw a lavish "vegetarian reception" for Vanisha in the Palace of Versailles, France.[39]

Mittal owns three prime properties collectively worth £500 million on "Billionaire's Row" at Kensington Palace Gardens.[40]

In 2005 he also bought a colonial bungalow for $30 million at No. 22, Dr APJ Abdul Kalam Road, New Delhi, one of the most exclusive streets in India, occupied by embassies and billionaires, and rebuilt it as a house.[41]

In December 2013, Mittal's niece got married in a three-day celebration that it is reported brought Barcelona to a standstill and cost up to £50m. An army of 200 butlers, cooks and secretaries were reportedly flown into Spain from India and Thailand while the 500 guests were made to sign confidentiality agreements.[42]

Awards and honours

Year of Award or Honour Name of Award or Honour Awarding Organization
2008 Forbes Lifetime Achievement Award Forbes
2007 Fellowship King's College London
2004 European Businessman of the Year Forbes
2004 Entrepreneur of the Year Wall Street Journal
2004 8th honorary Willy Korf Steel Vision Award American Metal Market and World Steel Dynamics
1996 Steel Maker of the Year New Steel

Bibliography

  • Tim Bouquet and Byron Ousey - Cold Steel (Little, Brown, 2008).
  • Yogesh Chabria - Invest The Happionaire Way (CNBC - Network18, 2008).
  • Navalpreet Rangi-Documentary Film (The Man With A Mission, 2010).

See also

References

  1. ^ a b c "Chairman of the Board of Directors and CEO". Arcelormittal.com. Archived from the original on 27 December 2010. Retrieved 7 September 2010.
  2. ^ a b "Lakshmi Mittal Chairman and CEO of Mittal Steel". webindia123.com. Retrieved 22 March 2015.
  3. ^ "Lakshmi Mittal, Owner of Karrick Limited". Bloomberg BusinessWeek. 25 February 2011. Retrieved 25 February 2011.
  4. ^ Reed, Stanley; Biesheuvel, Thomas (10 November 2011). "Lakshmi Mittal, the King of Steel, Trips Up". Businessweek. Retrieved 21 July 2014. {{cite web}}: Cite has empty unknown parameter: |1= (help)
  5. ^ "LN Mittal, Ratan Tata, Narayana Murthy get Padma Vibhushan". The Times of India. 26 January 2008. Retrieved 26 January 2008.
  6. ^ a b c "#82 Lakshmi Mittal". The World's Billionaires. Forbes. 21 March 2015. Retrieved 22 March 2015.
  7. ^ Srikar Muthyala (29 September 2015). "The List of Great Entrepreneurs of India in 2015". MyBTechLife.
  8. ^ http://www.southasian.com/lakshmi-mittal-richest-person-in-europe/
  9. ^ "Mittal richest in Europe and UK; fifth in the world". Hindustan Times.
  10. ^ "Tory pressure over Mittal row". BBC News. London: BBC. 12 February 2002. Retrieved 21 July 2014.
  11. ^ "The World's Most Powerful People". Forbes. Retrieved 21 March 2015.
  12. ^ Lubin, Gus (28 April 2011). "The 12 Most Expensive Weddings In History". Business Insider. Retrieved 21 July 2014.
  13. ^ "Board of Directors - Lakshmi N. Mittal". Goldman Sachs. Retrieved 19 July 2012.
  14. ^ "Lakshmi Mittal, Board of Directors of European Aeronautic Defence and Space". Bloomberg BusinessWeek. 25 February 2011. Retrieved 25 February 2011.
  15. ^ a b c d e f g h "Board of directors - Lakshmi N Mittal". ArcelorMittal. Retrieved 22 March 2015.
  16. ^ "The 2007 Time 100". Time.
  17. ^ "Lakshmi Mittal Biography: Education, Net Worth and His Personal Life". financeninvestments.com. 3 September 2010. Retrieved 7 September 2010.
  18. ^ "Nur Saidah: Surabaya's steel woman in a tough industry". The Jakarta Post. 3 April 2006. Retrieved 21 July 2014.
  19. ^ Zia Permata Buana (1 July 2007). Kisah sukses Lakshmi Mittal, dari Surabaya ke London: Rahasia Bisnis Orang Asia Terkaya di Dunia (in Indonesian). Hikmah. ISBN 978-979-1140-98-0. Retrieved 21 July 2014.
  20. ^ Saunders, Andrew (1 January 2013). "From the Caribbean to global steel giant: The rise of ArcelorMittal". Management Today. Retrieved 21 July 2014.
  21. ^ "Mittal's Olympic dream is worth Rs 40 crore". Daily News & Analysis. 9 November 2005. Retrieved 21 July 2014.
  22. ^ http://www.standard.co.uk/news/mittals-15m-gift-to-great-ormond-street-is-a-record-6680419.html Mittals' £15m gift to Great Ormond Street is a record
  23. ^ "How tycoon went from polo lawns to Polish jail". The Times. 27 November 2004.
  24. ^ "Poland wants to renegotiate terms of PHS sale to Arcelor Mittal". Abcmoney.co.uk. 16 March 2007. Retrieved 7 September 2010.
  25. ^ Franchetti, Mark; Winnett, Robert (10 June 2007). "UK's richest man in slave labour row". The Times. London.
  26. ^ a b "Plaid reveals Labour steel cash link". BBC News. London: BBC. 11 February 2002. Retrieved 21 July 2014.
  27. ^ Verdin, Mike (14 February 2002). "Lakshmi Mittal, steel mill millionaire". BBC News. London: BBC. Retrieved 21 July 2014.
  28. ^ a b c "Q&A: 'Garbagegate'". BBC News. London: BBC. 14 February 2002. Retrieved 21 July 2014.
  29. ^ "Steel firm condemns 'Mittal aid'". BBC News. London: BBC. 18 February 2002. Retrieved 21 July 2014.
  30. ^ "QPR secure huge investment boost". BBC. London. 20 December 2007. Retrieved 20 December 2007.
  31. ^ Garside, Kevin (21 December 2007). "Lakshmi Mittal pushes QPR up the rich list". Daily Telegraph.
  32. ^ "Briatore resigns as QPR chairman". Reuters. 19 February 2010. Retrieved 20 February 2010.
  33. ^ O'Connor, Lisa (8 August 2004). "Steel Plant Mess Bill Has Doubled". Sunday Mirror. Retrieved 7 September 2010.
  34. ^ "Lakshmi Mittal denies any bid to buy Blencathra mountain". Times Group. No. 4 August 2014. Retrieved 4 August 2014.
  35. ^ "$128M Spend for London House". MSNBC. 12 April 2004.
  36. ^ Langley, William (21 January 2007). "Profile: Lakshmi Mittal". The Daily Telegraph. London.
  37. ^ Turnbull, James (13 July 2007). "Takeover Week: Billionaires Row". Google Sightseeing. Retrieved 21 July 2014.
  38. ^ "Photo Gallery: Homes Of The Billionaires". Forbes. 22 May 2002. Retrieved 7 September 2010.
  39. ^ a b "On billionaire row, it's simple, veggie fare". Times of India. 28 September 2008. Retrieved 31 May 2012.
  40. ^ Simpson, Richard (24 June 2008). "Mittal Monopoly: Britain's richest man buys third property on Billionaire's Row". Mail Online. Retrieved 21 July 2014.
  41. ^ "Lakshmi Mittal builds real Utopia". The Times Of India. 18 August 2005.
  42. ^ Gadher, Dipesh; Worden, Tom (15 December 2013). "Just a little £50m family wedding, Mittal-style". The Sunday Times. Retrieved 21 July 2014.
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