Mittal sees consolidation in India only after 5 years

NEW DELHI: Acquisitions may have been the strategy behind LN Mittal’s success story, but when it comes to India, he does not see consolidation happening for at least five years. The Mittals instead plan to invest Rs 40,000 crore in creation of fresh steel making capacity in the country.

Mittal’s $32.5 billion acquisition of Luxembourg-based Arcelor has made Indian steel companies jittery. The Tatas have decided to hike the promoter holding through Tata Sons and other group companies to 33.6% from the existing 26.79% to ward off any acquisitions.

Mittal conjures up the Chinese model of growth for Indian steel industry. “First let the Indian companies grow. After five-six years there can be consolidation.”

His son and vice-chairman of Mittal Steel, Aditya Mittal, backs his father’s views, pointing out that there were few takeover candidates in India.

LN Mittal on a thanksgiving mission to India met Prime Minister Manmohan Singh and finance minister P Chidambaram.

Mittal indicated that his company would start working from wherever things moved faster. “Our goal post keeps changing,” he said, adding, the group was looking at opportunities in India and China.