Today we are going to discuss about a company which may not popular to you but it is a huge business company in the world. We are talking about Arcelor Mittal company which is own by Lakshmi Mittal. He now owns more than 10 billion dollars which make him one of the richest person in the earth.
His famous quote is “never put your emotion in business. Otherwise you will face huge loss in your company.” This genius businessman was born in 1950 in a middle class family of Rajasthan. He started his company in the name of Ispat international limited which become arcelor company after some years. we will know the entire story in this article.
Arcelor company is the largest steel making company in the world. They generated more than 70 billion dollars revenue from the market. They become so popular in steel manufacturing business that Arcelor become the synonym of steel making products.
From a steel mill in Indonesia, now they manufacture burj khalifa to empire state building to thousands of aircrafts and ships around the globe. The reasons of their success are described below.
Big Vision and play of action
They had very less amount of capital and revenue in start but with the help of unlimited courage and conviction they focused on the key factors in the industry. Earlier steel productions were very limited and efficient to fulfil their demand as there were huge rules and regulations in this sector. So they focused in entire globe rather than depend on a country.
Small company acquisition and turn around
While they were growing up, they took lease many small steel making company. Later when they had the balance in the company book they bought those companies and merged them with their company. Thus they make those company profitable which ultimately benefitted the Arcelor company.
Reinvest their profit in the business
There are two ways to expand one business. First is to get debt and expand. Second is to use the profits reinvested the company. This company followed the second process which is no doubt more efficient than previous one. In the process the expansion takes its own time but good for long term and less risky.
Huge Investing in Research and development
You have to be innovative and you need to have an efficient management for the long term success of any company. It also essential to scale up their business. As we discussed it acquired a lot of steel making company. But before that they spend a lot of time to understand the business model of the company. If they found loophole and think that they can manage that side quite well, only after that they acquire the company.
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They trained their employee to see big dreams and make that happen in real life too. They encouraged by setting a good standards so that everyone included themselves with the company. It helps them to make a good community around the company. All the employee are also treated well by the company in return.