The poor are poor, the rich are rich

Chapter 120 1 Lakshmi Mittal: Only by understanding the situation can you make a lot of money

Chapter 25 Keeping your head clear all the time to get riches

Chapter 251 Lakshmi Mittal: Only by understanding the situation can you make a lot of money

Regal Profile:

Name: Lakshmi Mittal
Mittal was born in Rajasthan, India, in 1950, and his father started a steelmaking business in Kolkata in the early 20th century.

In 1971, Mittal built his own small steel workshop.

In 1975, broke away from the family business and established a small factory in Indonesia.Starting from this small factory, Mittal gradually built a steel empire spanning 14 countries.

In June 2006, Lakshmi Mittal acquired Arcelor Steel, the world's second largest steel group, for 6 billion euros.

2008年该集团在全球27个国家和地区拥有61家钢铁厂，年产钢1.1亿吨，占世界钢产量的10%，销售额达560亿欧元。

Indian steel magnate Lakshmi Mittal's steel empire stretches from former state-owned steel mills in Kazakhstan, through Europe and Africa, to the United States. In 2004, "Forbes" magazine ranked the world's richest people, Lakshmi Mittal ranked 62nd, with a net worth of 62 billion US dollars.

If a man can buy a mansion for 7000 million pounds, setting a record for the highest transaction value of a single house in the world in one fell swoop, then it will not surprise anyone that he puts his precious daughter's wedding feast in the French royal palace up.This person is a rich man living in the UK-the famous Indian steel industry magnate Lakshmi Mittal!He is a myth in the world's steel industry, relying on mergers and acquisitions to rise rapidly and firmly sit on the leader of the global steel industry.

Once, the rich man who made India proud gave a speech in New Delhi.After the speech, a student who was studying for an MBA asked him: "How soon can I be you?" Lakshmi Mittal said to him: "You have to work hard. There is no magic trick to make a person rich overnight. Success is the result of unremitting efforts." Lakshmi Mittal has achieved today's brilliant achievements through unremitting efforts.He injected good situations and opportunities into his unremitting efforts, and "understanding the situation" paved the way for him to become rich.

Over the years, Lakshmi Mittal has relied on two strategies for success in its acquisitions around the world, converting traditional blast furnace smelting operations into mini-mills and utilizing direct reduced iron (DRI) as raw material.These have greatly improved the efficiency of the factory and reduced the production cost.He will also send professional management personnel to the local area to stabilize the situation, and improve the production efficiency of the enterprise by reducing the number of employees and increasing investment in assets and technology.

Lakshmi Mittal has spared no effort to promote this wave of mergers and acquisitions, and at the end of 2004, he took a milestone step.First of all, in Europe, Lakshmi Mittal merged the Ispat International Company and LNM Holdings under the family, and officially changed its name to Lakshmi Mittal Steel Company. Later, it was approved to acquire the US International Steel Group.In this way, after the acquisition is successful, Lakshmi Mittal Steel’s global market share will reach 6%, and its annual output will increase to 7000 million tons, making it the steel company with the largest steel shipments in the world, far exceeding the previous one. Europe's Arcelor Steel Company ranks first (2004 million tons of output in 4280), and Lakshmi Mittal is also well-deserved to become the "King of Steel" in the world.

2006年6月，拉克希米·米塔尔以250亿欧元并购全球第二大钢铁集团阿塞洛钢铁公司，举世震惊，成就了“恐龙级”的阿塞洛？拉克希米·米塔尔钢铁集团。截至2008年该集团在全球27个国家和地区拥有61家钢铁厂，年产钢1.1亿吨，占世界钢产量的10%，销售额达560亿欧元。预计到2015年钢产量将上升到1.5亿～2.2亿吨。

Lakshmi Mittal is making non-stop mergers and acquisitions. With the development of India's economy and changes in government policies and systems, Lakshmi Mittal has also begun to target the market in his hometown. Besides, the Chinese market is also impossible for him. missed target.In the Chinese market, Lakshmi Mittal Steel Company acquired a 37.17% stake in Hunan Valin Pipeline, the eighth largest steel company in China, and is listed as the largest shareholder of Valin Pipeline together with Valin Group.It is expected that Lakshmi Mittal will not stop the pace of acquisitions in the future, and he will continue to expand his huge steel kingdom all over the world.

Lakshmi Mittal's career success is also closely related to India's cultural background.Although he has been in a foreign country for many years, Lakshmi Mittal still has deep feelings for India. For example, he has not changed his nationality, maintained an Indian-style rigorous life style, and insisted on practicing yoga every day.He once said in an interview with "Fortune" magazine: "Being an Indian is very beneficial. You live in a country with multiple dialects and multiple races. You can learn a lot, such as how to bridge differences. , How to compromise.” Moreover, India’s excellent local talents are one of the important resources for Lakshmi Mittal’s development, and they have always been his left and right arms in his work.

Lakshmi Mittal has described her time in Indonesia as "a decade full of energy".The local economy is very open and he has learned to produce at low cost.He accurately describes his company as "a truly global steel business."Lakshmi Mittal has publicly declared his ambition to build the world's largest and best-managed steel company and won't let anything stand in his way, friends say.

The main secret of Lakshmi Mittal's success, however, was the timely exploitation of two technological innovations in steel production.One of these is the switch from traditional blast furnace steelmaking technology to the use of more efficient micro-steelmaking furnaces.In addition, Lakshmi Mittal also realized that as more and more steel mills adopt micro furnace technology, the price of raw material scrap will rise.So he started investing in an alternative to steel scrap, direct reduced iron (DRI), of which his company is now the largest producer.

"Only by understanding the situation can you make a lot of money." Lakshmi Mittal saw the situation, seized business opportunities, and created a wealth myth with the purpose of "merging and transforming loss-making state-owned enterprises".

(End of this chapter)