Lakshmi Mitta is the richest man of Indian origin. He is the most powerful steel tycoon of the current time. Earlier this year, his effort to acquire Arcelor SA created stiff opposition from Europe (mostly from France). That time the Indian government and the Indian media came in support of him and even you could find a report with the title ‘Racism hindering Mittal's Arcelor bid?’ Whether it is racism or not Mittal finally succeeded in getting what he wanted. Then, he decided to focus on him home country and Mittal is now facing even a tougher challenge in India. Now, the Indian government and the Indian media are not with him anymore. Today, I could see two reports with the headlines:
So, you can understand that Mittal is having really a tough time in India now. I am stating here five reasons about it:
- India still does not have total free market economy like Europe or America. So, Mittal cannot expect a smooth ride here.
- Indian companies are not happy that Mittal is trying to capture market share in India.
- In terms of business law, India has often very old laws that are not compatible with modern situation. That is why, Mittal is facing some problem in India.
- As for the problem with IOC, IOC has objected that “Mittal's trading venture with ONGC — ONGC-Mittal Energy Services Ltd — is inexperienced in the field and "ineligible" for getting any business to transport crude or products for the company.”
- Indian bureaucracy is not famous for its speed. So, Mittal will surely have a tough time in India in the coming years.
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