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MUMBAI: Lakshmi Mittal was cast into the international limelight when he began negotiations to merge his own company with Europe?s Arcelor into a US$34 billion entity. The world‘s fifth richest man speaks to Talk Asia‘s host, Satinder Bindra, about the Mittal-Arcelor tie-up, family involvement in his company and his own business future.
Mittal talks frankly to Bindra about the merger process with Arcelor. It was a drawn out affair with Mittal describing it as being something akin to a boxing match, "?it had several rounds, and this process required that you win every round. And there were many rounds where it was kind of a draw because no sides were winning," he says.
The merger was also not without its share of critics, from both business and political spheres. Mittal takes us inside the merger process which threatened to be constantly derailed. He describes his reaction to criticism to his of own company by the CEO of Arcelor who cited Mittal Steel as a company "?manufacturing sub standard products" compared to its European counterparts.
Despite fears of how these comments might have affected the success of the merger, Mittal is candid in his assessment of the tactics used by Arcelor management. But he also displays a pragmatic outlook on how to get things done in today?s high-stakes business world. "That?s how the game is played" he says, "?always if I have only supporters, there would be no fun and no challenge."
Bindra questions Mittal on the accusations of racism surrounding the deal with the French steel maker. Mittal is forthcoming on his reaction when questions of race became a part of a deal making process.
Motivated from a humble childhood, the multi-billionaire says his approach to managing the Mittal global business is to "?have a lot of commitment and dedication to the business, deliver a better product than our competition, and to have better productivity."
He also speaks about family involvement in the company. Through a mutually respected relationship, Mittal is grooming his two children with the same care he puts into the business. As a result of his training, it was actually his son who advised Mittal to take over Arcelor in 2005. He adds that he is confident of "?what they are doing and my son has been very successful as a president and CFO of Mittal Steel."
