Lakshmi Mittal fought five months to take over Arcelor SA and in the end he was successful. In that takeover bid, he made it clear that he was not the person to accept back off from what he wants. Now, Mittal has set off into a new mission- making a mark in India and China. These two countries are very attractive now to foreign investors but we all know that direct entry to these markets are not easy. India may be Mittal's own country but Indian mining law is 49 years old and it is extremely difficult get new mining license in India. So, Mittal can hardly do anything but to wait until Indian government opens up the steel industry for the foreign companies. World's No. 3 steelmaker, Posco of Korea, has found itself to be in all kind of difficulties in its attempt to start operation in India. The state government of Orissa has approved the plan of Posco but the Korean company is yet to get the approval from the Indian central government.
It is ironic that when Mittal tried for Arcelor, he faced stiff opposition in Europe (particularly from France) and at that time, Indian government and the media supported him whole heartedly and even some persons went as far as stating that this was a classic example of western prejudice against Indian entrepreneurs. I found one article titled, 'Racism hindering Mittal's Arcelor bid?'.
Now, Lakshmi Mittal has perhaps even a tougher mission in his hand. Posco bosses are getting more and more frustrated about their project in India. It will be interesting to see what strategy Mittal takes to be successful in India.
Related Articles
Comment Preview