Aditya Mittal was born in 1976 when the family was debating whether to expand in India or spread wings in foreign lands. In the case of Mittals destiny was clearly playing a role. When Laxmi Niwas was born his father Mohanlal got a sudden break to break into the steel making business that decided the course of Mittals. The year Aditya was born his grandfather Mohanlal agreed to the suggestion of Laxmi Niwas to set up a steel mill in Indonesia. And that decided that fate of Laxmi Niwas and of course his son, the newborn Aditya. Soon after, ‘Steel International’ of Mittal was set up and their steel rolling mill came up in Indonesia. Little Aditya was the bringer of new prosperity and Laxmi Mittal made rapid progress in the field of global steel manufacture.
Aditya was not born to see hard times and struggles. The family had crossed the barrier to step into the world of riches. Laxmi Niwas was making more money than he could count. The meteoric rise of L.N. Mittal had begun the day Aditya arrived with his fine fortune. Aditya would never know what poverty was, born with a golden spoon in his mouth as he was.
From the very primary education days Aditya showed his sharp mind and above avergae intelligence. He was sent to Wharton University of USA to do MBA course. There was no problem as Aditya was very receptive to education and learning. Following his father’s example Laxmi Mittal also tried to instil business and industrial spirit in Aditya. He wanted his son too to carry the enterprising tradition forward. Every father wants his son to carry the family values to a new height and set record for the descendents to break. Aditya passed all the tests and met the expectations of his ambitious father. Pleased with the talents of his son Laxmi Mittal gave him the important charge of the part of a ‘Steel international’ immediately after the young Mittal earned his MBA degree. Aditya ably discharged the executive duties encouraged his son as he knew the youngman was carrying his industrial genius. He provided guidance to the youngman wherever needed.
From the very childhood Laxmi Mittal had been psychologically shaping his son Aditya to carry on his industrial legacy. For sleeping beauty and her charming prince, little Aditya must have been recited the bed time story of ‘Sick steel beauty and her acquiring prince.’
The father Laxmi Mittal was so confident of his son’s capablility that in 1997 when ‘Steel International’ of Mittals was being enlisted in New York Stock Exchange the entire responsibility of IPO was put on Aditya. It would test Aditya’s learning from MBA course, his initiations in industrial tradition by his father and the value his experience gained by working with his father on the job. Aditya took it as a challenge and determined his goal. For the success of the IPO he gave a certain target to all the concerned executive officers of the Mittal group. The task of publicity Aditya bore on his own shoulders.
‘Steel International’ IPO was oversubscribed. Targeted at $ 40 crores the IPO brought in $ 72.20 crores. It was the first special success of Aditiya Mittal. He was yet a youngmam of 21 years only. At that age most youngsters only know the names of the cinema halls of their towns.
This success of Aditya was termed as the Equity Deal of the Year-1997. The business world had acknowledge the talent of the youngman. It was a very pround moment for the father, Laxmi Niwas. The son had met his expectations. Inspite of being born in riches Aditya was never spoilt and he kept his head straight. He never betrayed any trace of arrogance.
The success made Aditya a self confident youngman and he had won the trust of his father.
Laxmi Niwas had transplanted his experiences and business formula into Aditya and to keep him sharpened up discusses business matters with his sons and invites suggestion. The father keeps his son in close touch. For that very reason when Aditya was at Wharton Laxmi Niwas used to hold his business meetings at Wharton. The meetings were attended by Aditya for experience and education.
Once Laxmi Mittal had remarked, ‘I consider Aditya to be future and follow him.’ It shows the extent of faith the father had in his son. The financial chief of the Mittal Steel says about the father-son relationship and the business talent of Aditya—”Pepole think that Aditya has experience of only ten years that he has spent in the office. They must know that even before that period at dinning table the father used to pass on to his son the special dish and that dish used to be steel business recipe.”
It was natural because steel was thier bread and butter. Touching new milestones in global steel business was their passion. Businesswise the journey of Aditya was not all cakewalk. In the beginning he faced challenges. At the start of the new millenium steel industry was in recession and Mittals had acquired three steel plants. There was shortage of capital and banks were reluctant of risk money in steel business. The father-son worked day and night to tide over the difficult phase.
In June, 2001 an Algerian plant, In July Siddex and in August Isocore were acquired. The hard work and planning paid. The production level went up encouragingly. The most of the hard work was done by Aditya. The business world realised that one more steel wizard had arrived in the Mittal family. You can’t always win and this lesson Aditya too learnt when he met some defeats. There are always risk factors in business and every endeavour does not succeed. In Slovakia he had to accept defeat against the power of White House when Bill Clinton was the president. But Aditya learnt valuable lessons in that defeat and steeled himself for future challenges. Later, he settled the score when with his talent he outwitted President George Bush lobby in Poland. The Bush supported US Steel Mill had to beat the retreat in face of Aditya led ‘Steel International’ charge. Even George Bush acknowledged the youngman’s skill.
In 2005 Aditya displayed his maturity in an interview given to a magazine. Some excerpts :
❑ I want the Mittal Steel production to cross 150 million tonnes annual mark and for that plans are being made.
❑ We have achieved remarkable success in US market. Of the total consumption of steel by car manufacturing business our share in 1/3. That is a satisfactory achievement.
❑ India is a big emerging car market. We are trying to gain a substantial share in its steel demand.
❑ We have set up a massive steel complex at Chicago.
❑ Companies like Ford and Honda trust us. We are their major steel suppliers.
It goes to prove that the young Mittal has learnt the finer points and intricacies of the business of his industrial group. He is creating a fine track record of steel production, quality control and smooth distribution.
The market observers feel that the future of the ‘Steel International’ was in capable hands and for the several coming decades it has no worries. All the targets set by Aditya Mittal shall be met on time.
In victory and defeat—undeterred Aditya
Impressed and encouraged by the successes of his son Laxmi Mittal handed over the charges of some ambitious acquisitions to Aditya. The son did not let down his father. He succeeded. His task was made relatively easy by the trusted managers and technical experts of Mittal group who guided him along at every step. Laxmi Mittal himself lent a helping hand whenever required. Aditya wanted his group to have a solid base in East Europe as well. He saw a chance in Slovakia. The acquistition drive was in the charge of Aditya. But the game was difficult here because the opponent in the game was charismatic Bill Clinton, the president of the mightiest power of the world USA.
Bill Clinton wanted American company US Steel to acquire the Slovak steel plant. Any lesser could not have dared to stay in the field but young Aditya was undeterred. He preferred to stay in the race. Bill Clinton began to influence the seller with his aura and charming personality. The American lobby became hyperactive and put the management of the mill under political pressure. The management caved in and US Steel acquired the Slovak plant. Aditya had to accept defeat.
It was a bitter experience for Aditya who had not tasted defeat before. Laxmi Niwas intervened lest the youngman should feel depressed. He cheered up his son and said every defeat was a step to success. The global bussiness was a fierce competition where everyone wants to end up in winner’s circle. But there is only one spot for the winner and someone is bound to face defeat. Aditiya realised that often some external factors also influence the game and skill or merit got sidelined. An industrialist needed to be adapt in psychological and politcal pressure game as well. He decided to be wary of those factors in future.
The luck gave Aditya a second chance to try his updated strategies. The Polish government offered four of its steel works for privatisation. This time also the opponent was US Steel. The president of America was Geroge Bush who was pushing for the American company like Bill Clinton. Iraq war was on. US was calling the shots everywhere in the world. American diplomats were creating pressure on Polish government. It appeared that US Steel will again walk away with the prize because of the political backing behind it.
But this time the scence was different a bit. USA had its attention diffused due to twin tower attack of New York, Afghanistan and Iraq wars. On the other side Aditya had learnt valuable lessons from the earlier fiasco. He put some professional players in the field and the acquistion game or rivalry got converted into a public issue through media. The world was made to watch the game. It pushed USA in a defensive position where it could not use its old arm twisting game. It had to be careful. Meanwhile young Mittal got the message across to the union leaders through professionals that Mittal group respects the laws and rules related to human resource. It was said that for Mittals it was not only matter of acquisition but a humanitarian effort as well. The union leaders were made to consider where the interests of the workers lay, US Steel or Mittal Steel International? The union leaders hinted that no decision will be taken under pressure from US Steel or their U.S. political backers. The talks with the government representatives were held by Mittal Group and attractive package of workers welfare and social services were sounded.
Aditya—No bad feeling or bitterness
At the external level it appeared that it would be impossible to go against the wish of George Bush. An England based newspaper even before the formal announcement printed the news that US Steel had bagged the deal considering it a foregone conclusion. The white British seemed to gloat over the fact that a brown monkey had been shown its place. But the intelligent work of Aditya’s team and their attractive package won the day for Mittals. The Polish government decided in favour of Mittals and the racial detractors were made to bit the dust. Geroge Bush lobby had been defeated and Aditya had taken his revenge.
Aditya was able to send the message down into the poles that Americans were pushing them even before the acquisition which should make them imagine what they will do after the take over. Mittal also drew a rosy picture of the worker welfare under his group. The government of Poland tilted towards welfare instead of pressure tactics. It was all done within the limits of grace and dignity. So, inspite of the defeat Bush regime and Mittals carried on their cordial relationship. There was no trace of any bitterness. Both sides took victory and defeats sportingly as if it were the result of a friendly round of poker game. Whenever Mittals intended to acquire some business in USA the president George Bush readily issued the required ‘No objection’ certificate. Aditya had displayed his skill. The capitalist USA also recognised his skill and gave little importance to victory or defeat at personal levels. Perhaps that is the spirit that makes America a great country and the world power.
