Aditya Mittal’s tips on how to survive a downturn

Aditya Mittal, CFO, ArcelorMittal is just 32 and is the new face of the global steel industry. He has helped put together about 50 deals. Mittal is an M&A whiz and a strategist par excellence.

 

Born to the ‘Sultan of steel’, LN Mittal, and brought up near steel plants, it was only natural for Aditya Mittal to take to the family business. After graduating magna cum laude from the Wharton School of Business, Aditya was formally inducted into Mittal Steel a little over a decade ago in 1997. After a quick initiation, in 1999, he added Mittal Steel’s M&A division to his portfolio along with his first love, finance.

 

This marked the beginning of the company’s audacious inroads into Central Europe, Africa and the US. But soon Aditya found himself in the middle of the biggest downturn the steel industry had ever faced.

 

Mittal narrates the company’s journey. “I joined 11 years ago. We got into the IPO, which was fantastic. That was my condition for joining the company. I did not want to work for a private company; I wanted to work for a public company. Then I became the head of M&A. As soon as I became the head of M&A, the steel industry crushed. So, it was a trying time. A third of the US steel industry filed for bankruptcy. The famous Corus in the UK was close to bankruptcy.”

 

“We became a penny dollar stock. I got a letter from the NYSE that we would be de-listed in 90 days. We were having difficulties with our creditors and suddenly I became the head of M&A. My team left because they felt there was no future. It was me and my colleague Sudhir Maheshwari. Together, we said what are we going to do now. I started looking at opportunities around the world and lo and behold the opportunities were tremendous. There were very strategic, very low cost, and good companies. We could strike a deal even though we didn’t have money because the sellers were patient and that year in the worst downturn ever in the steel industry, we doubled our company. With that began the march of becoming the largest steel company in the world, which we achieved in 2005 when we acquired ISG in the US.”

 

The world sat up and took notice of Aditya as he led Mittal Steels’ almost unbelievable and controversial bid for Arcelor, which was at the time the world’s second largest steel company. It was an acquisition fraught with political and regulatory uncertainties. But that did not deter Aditya from convincing his father and the world that buying out Arcelor made sense.

 

After a five-month long process involving multiple governments, hundreds of lawyers, a battalion of investment bankers, white knights, poison pills and a USD 33 billion offer, Aditya finally got what he wanted. Today, the world’s largest steel company, Arcelor Mittal has revenues of over USD 100 billion and more than 3,20,000 employees.

 

Excerpts from CNBC-TV18's Shereen Bhan’s exclusive interview with Aditya Mittal:

 

Q: It is interesting that you spoke about spotting the opportunity. You said the reason for Mittal Steel’s transformation was because you could spot the opportunities that other people, especially the Americans missed. What gives you the intuition or the ability to spot the opportunities that other people don’t?

 

A: There are a number of factors: it begins with my father. He never worked in his own country. He started his business in Indonesia, which since he is Indian, is a foreign country. So, the world became his oyster, and that is the mentality of our organisation. We have always considered ourselves to be global and our focus is every country. We are not limited to geography or states or provinces or anything like that.

 

If you looked at our steel companies historically, they are geographically focused. Even today, if you look at the Northern Asian companies like the Japanese and the Koreans, they are primarily focused only in their countries, even though they are the number 3 or 4 or 5 largest steel companies in the world. That is also seen in companies in Europe and across the world. So, that is one thing that we wanted to change because we saw opportunities in globalising the steel industry.

 

The second thing was obvious, at least when I was at university. I remember my Professor showing the three worst industries in the world for the last 30-years in terms of return on capital and steel was topping that list. It was terrible.

 

Q: Were you thinking, ‘Is this my future’?

 

A: Exactly. When I joined, my grandfather was so upset. He said why are you joining the steel industry? It is a setting sun; there is no future. All the young, smart guys- not that I was smart, but I was young- joined the IT industry. They join the Googles, Yahoos and the Microsofts of the world.

 

Q: That was never a consideration for you to actually go the Google, IT or “sexy” glamorous way?

 

A: No, I have liked steel, I don’t why, may be I was blind. I still love steel. It is a passion and now suddenly it has become the hot thing. For me whether it is hot or not does not matter. It is something that we love to do.

 

Q: Your father evolved the company and the way that you look at things because a lot of people, who have been observing the way that deals have been done within the group, say that your father likes to have management control. You are okay with not having management control as long as you get a foot in, as long as you get a toe-in? Is that a difference in the way that you look at deals?         

 

A: There are a lot of differences. But, fundamentally, both of us bring our shared prospects on the platform and that is why this company is successful. If I was going one way and he was going another, I do not think this company would have the strength that it is having today and together we are stronger than we are on an individual basis. We do compliment each other.

 

Q: What does he bring to the table? What do you bring to the table?

 

A: He brings a lot of things like vision, wisdom and experience. I bring the new ideas, some energy and some boldness.

 

Q: Eye for detail?

 

A: Clearly, I am not comfortable if I am not aware of everything. But together we work well. For example-Arcelor, was proposed to him by me; perhaps it was a bit bold, when I proposed it to him. But over time, he got convinced and then it was just a matter of convincing the world.

 

Q: How long did it take you to convince your dad about Arcelor?

 

A: It probably took a good week. He wasn’t that slow. That is why he is where he is.

 

Q: What was the apprehension on his part when you proposed it to him first?

 

A: First, I just told him the concept, whether we can do this and come together and what that means. The apprehension was that what are the underlying assets of Arcelor, how are we going to achieve it and all of that. Clearly, once we started talking, it became obvious that this is the best thing that can happen to the company and the industry.

 

Q: Tell us about your ability to stitch together deals. I believe you have personally been involved with or directly overseen about 20 deals and indirectly overseen about 50 deals being put together. What gives you the ability to be with this M&A?

 

A: I don’t know if I am an M&A whiz or any record holder.

 

Q: The numbers speak for themselves.

 

A: Yes, the numbers are significant, and the company has done well. We are all proud of that success and there is clearly no doubt about it. But fundamentally I don’t know, is the answer. I think I would have been very lucky and the exposure I have seen; I lived through the worst downtrend in the industry and when you live through it, you get to see the worst and the best.

 

When the steel industry was at its bottom, it was very obvious that you needed to make sure a steel company was sustainable. We had certain steel companies that we had acquired which were bad apples, and they had problems strategically, either in their cost or market position.

 

So, on that basis, we could create a very robust M&A strategy going forward. That is what we did and that is why we are very careful about the companies we choose. Even though we have done 20-70 deals, we were very diligent in making sure that these companies would survive not only the upturn but also the downturn in the steel industry. That focus differentiates us compared to someone who is just grabbing assets and building a larger company. We built a larger company but on assets which have very sound strategic profiles.

 

Q: The book “Cold Steel” is out. I was reading about code names, telephones are being bugged and helicopter chases. Is it is a thriller? Was it really like that?

 

A: Absolutely. It was a thriller every single day. We did not realize it when we launched, obviously, that it was going to be a thriller. When I joined the steel industry ten-years ago, I did not think the steel business is going to be exciting like this.

 

But the Arcelor-Mittal deal was and it was one of a kind. I do not think we would see something like that again in the future. Clearly, the book does portray some aspects of the deal. It does not get everything right because it is supposed to be a thriller.

 

Q: Was it a slight exaggeration or a lot of exaggeration?

 

A: I do not think it is an exaggeration as much as just focusing on different aspects of the deal. There was a lot of intricacy in the deal and a lot to do with how we achieved the deal with the shareholders and what we did with the politicians. It covers the media angle very well actually.

 

Q: The PR battle?

 

A: Yes, the PR battle.

 

Q: The clandestine meetings?

 

A: Yes, the clandestine meetings. Some of the personalities are exaggerated, especially because a lot of colleagues were with us at Arcelor-Mittal. But it is one of those deals that you can never forget, a highlight of anyone working in Arcelor-Mittal. We enjoyed it not only because we were successful but we think we changed the steel industry through this transaction.

 

Q: A lot of people who worked on that deal say conceptually, it was Aditya Mittal’s deal. How do you respond to that? What was the hardest part of that battle for you personally?

 

A; The hardest part was to make sure we win because when you launch something like that, one cannot fail because then the company is not the same, the industry is not the same and the amount of risk that you have taken has all gone wrong. My job is to be Head of M&A. So, I have been doing this for the last seven years and so Arcelor was obvious to me.

 

It clearly was the best fit; not only would it change our company but also the industry. It is may be an exaggeration. But if you think about us in the steel industry, we started with may be one chip (we use the example of casino), we walked in with one chip and slowly through our efforts we built a steel company. In 2001, when we started, we were small. We doubled that year in the worst downturn of the steel industry.

 

Q: Did it become an ego purchase somewhere down the line, when the battle really begun to get bitter and ugly?

 

A: I would like to say no but the answer is yes obviously, not only for us but also for the whole company it was a matter of the whole of ex-Mittal Steel. It was all about are we going to be successful in realising our vision of transforming the steel industry.

 

It was no longer about the company and not the steel industry, because if this deal had not gone through, I do not think the steel industry would be where it is today, consolidation would not have happened and people would be very careful in doing deals.

 

Even Indian global companies would be careful because suddenly there was an example of a big company being rebuffed. So, the world would have been a different place and so would be the steel industry.

 

Q: And Tata-Corus may not have happened?

 

A: Yes, it may not have. Corus was very clear, once we had succeeded, that they need to do something about their future and they began discussions with Tata very wisely. It was very interesting. The day we became successful, there were 10 steel companies in the world that immediately instituted a defense mechanism. But that was only on the day we were successful, which was in June or July and not in January because they thought this was not going to happen. So, it just shows how the world changes.

 

Q: Have the integration issues been resolved and sorted out, with differences buried and the targets set for 2008 in terms of savings and revenues, on target to meet those?

 

A: Yes, absolutely. It has happened much better than any of us expected, both sides of the deal. We expected synergies in three years and we did that in 18 months. The integration was phenomenal and people are genuinely happy. As you walk around the company, there is level of motivation and excitement, which is higher than it was even in the ex-Mittal company.

 

We have all made changes and have learnt a lot from the Arcelor side and vice versa. To give you a cultural antidote, we used to never serve alcohol in our offices and that was our old style. But now we have so many French employees, which is just an example of how we are making people feel comfortable in the new entity. Then people are not only comfortable and also motivated and passionate and hopefully they are bold everyday in their working life.

 

Q: One of the other differences that people talk about, that you have made personally, is in terms of corporate governance. This was a huge issue that was brought up when the battle for Arcelor Mittal was on. You had a condition of yours that you would work only for a public company and not for a privately held company. In terms of corporate governance, what are the changes that you have actually gone about making to change the perception and the image?

 

A: There are a lot of things that you do; some are obvious and some are not. The most obvious one is working for a public company. The second was convincing everyone that it was okay to have a shareholding in ArcelorMittal, which was less than 51%.

 

Q: Your dad wasn’t happy with that, was he?

 

A: I would not say he was unhappy with it, but it just requires an understanding and an appreciation. Today, if you ask him, he will tell you that it does not matter what shareholding you have in a company, only performance matters. So, clearly that is a learning experience.

 

Q: You have gotten him to change that mindset, haven’t you?

 

A: Yes, it has been a good discussion and that is a fundamental move forward because it reflects that the company or the family is not on to the crutches of its shareholding but because of its performance capability and that is very important. That distinction is really the change in corporate governance. I do not like it when I am at a conference and people say that this is a conference of a family run company. I refuse to attend that.

 

Q: Had that happened when the deal pass was going through? There was a lot of talk on ‘the son as the owner and the family and so on and so forth’. Did that hurt you?

 

A: Obviously, it hurts you when someone tells you something like that. Often you realise that when you are working in a company, you have to demonstrate yourself because of what you have achieved. But sometimes that does not translate so well on the world outside. That clearly was another discussion with stakeholders as well as with the media and that is part of life.

 

Q: I read somewhere that people are constantly trying to test you. How would somebody test you for instance? Give us an example of what you mean by that.

 

A: I was tested when I joined the company. I do not think people test me today. I told you about this IPO. So, I was part of the team working on this IPO. There was a point in time when this deal was basically dead. We were presenting with the top management about this deal and my boss said, “This is Aditya’s responsibility.” So, that is a test because I was never really responsible at the beginning on this transaction, and I was 21 then. But I was made responsible when the deal was completely at its worst. So, then the whole organisation is testing you and whether you can bring it back up, revive it and make it a success.

 

I was fortunate that it was clearly a success and it did well. But that is an example of how the organisation can maneuver to test you. It is part and parcel. I don’t blame anyone. In a way, it is good because it makes you stronger and more capable and confident. So, I went through some of that in the early stages. Now, I am not saying I am pleased about it, but it was a good thing.

 

Q: Every article that has been written about you or every prelude to an interview that has been done with you were ‘Aditya Mittal - the man with the Bollywood star looks and the boyish charm’.

 

A: You have met me and know that it is a complete lie.

 

Q: Does it embarrass you when you read stuff like that?

 

A: It is completely irrelevant. I don’t even look at myself like that. So, now you know how untrue it is.

 

Q:  I believe you have a folder on your table which runs into about 80 pages, 3 deals a page, you haven’t snapped up everything that needed to be snapped up already?

 

A: No, we are small, just 10% of the global steel industry. So there is a lot to do.

 

Q: 80 pages?

 

A: Yes it is, and I am trying to reduce it. But there is a lot because we don’t only focus on steel. We are looking at mining, iron ore, coal, manganese, and other mineral products. We are looking at distribution growth, project developments. So there is tremendous opportunity for us at Arcelor Mittal.

 

Q: The balance sheet is fairly stretched at this point in time, USD 22 billion in debt, what size of deals are we talking about?

 

A: The balance sheet is not at all stretched. What we forget is that our earnings have also increased. So we have room in our balance sheet to grow but we have to be wise in terms of where we spend our capital. In terms of the deal sizes, I can’t see anything like the Arcelor deal, that was a defining deal. That is a once in a lifetime sort of a deal. There are things that we can do to further grow our company.

 

The emphasis we have in terms of our capital is the Greenfield and the Brownfield projects, and on a combined basis we expect to spend USD 50 billion over the next 5-7 years in growing our steel business. About 20 million tonnes of Brownfield growth, 23 million tonnes of Greenfield growth, 55 million tonnes of iron ore and a lot of growth in distribution as well. That gives you a flavour of how aggressive we are in growing our business even in the absence of big M&A deals like Arcelor.

 

Q: Analysts who look at the company say that if you increase your exposure to Asia, you pretty much got the world. India is an area of opportunity for you, I believe it’s your number one priority area at this point in time. You’ve already got a presence in China, via a 33% stake in Hunan. POSCO is that a possibility at all or is it something that you are not looking at or something that is not on the radar?

 

A: Our primary focus is India and China. We intend to grow in India.

 

Q: Organically or inorganically? Organically I know you have got your plan set out, but it’s at a frustrating pace in India at this time regarding the steel business. Would inorganic growth be a consideration?

 

A: It’s always a consideration.

 

Q: Any thing identified?

 

A: It’s not a matter of identifying. You need a willing seller.

 

Q: Have negotiations or any clandestine meetings taken place?

 

A:  I don’t think so. Everyone’s focused on growing their own businesses in India. There is no serious steel company out there that intends on not selling itself at this time in the cycle.

 

So right now everyone is focused on growing their own businesses and so are we. The progress has been slow, but that’s India and I am not surprised. We have a very strong democratic base, a very strong and good bureaucracy as well. It takes time to allocate a mining license, to allocate land, taking care of the constituents and the stakeholders. So it’s taking time but fundamentally the potential is huge.

 

Q: The roadblocks have been pretty severe as well. Just to take POSCO’s example, over three years, they haven’t been able to get much done and are hoping to acquire land that they were going to acquire. I know you are not POSCO but you are Arcelor Mittal but do you hope things would be very different for you?

 

A: Roadblocks is the name of the game. If we were shy of roadblocks, we would not be bidding for Arcelor. So clearly when the opportunity is huge, there are challenges and otherwise everyone would be doing it. We think we bring a unique set of attributes to the table in India. We have a lot of global knowledge, global technology, global R&D, global customers and hopefully some appreciation on the Indian way of working, being Indian. And I think we are making good progress.

 

Q: What is the schedule that you have got now in place for India and how hopeful are you that you would meet those targets?

 

A: We should be breaking ground in the early part of 2009. We should be completing our first phase after we break ground within two years. So, we should have steel being sold, produced in India in 2012.

 

Q: Another question on India and the sectors that are looking exciting to you there. You have got big plans for steel of course. But have you been backing other companies who are involved with sectors like real estate or oil for instance. Indiabulls is an example, they have just listed their REIT on the Singapore Stock Exchange and you have backed significantly. Is that an area of opportunity you are looking at or is this a one-off?

 

A: It is not a one-off. We have three other aspects of the family. One is the Mittal family’s private investment office that started right after the IPO. I remember meeting entrepreneurs like Sameer Gehlaut for the first time and liking what they were talking about and we made an investment.

 

We have multiple investments. We fund a lot of hedge funds in the UK as well as private equity houses and we continue to do that. On the oil and gas side I think that story is well covered. We have a joint venture with ONGC.

 

Q: What is the plan now for China and how confident are you of making further inroads into the Chinese market?

 

A: The plan for China is simple. We want to have significant minority stakes in a couple of companies and work with them to develop their technology base and to develop their marketing presence and also grow those companies.

 

We have been very successful in our JV with Hunan Valin - the 8^th largest steel company in China. We have grown it from an 8 million tonne steel company to a 12-million tonne steel company. It has done very well. We are going to be producing automotive grade steel and electrical steel through Hunan Valin.

 

So, these are technologies that are not available normally to these companies in China. Through that we are enlarging our partnership.

 

Q: Steel prices have gone up about 30-35%, we see crude oil prices moving up. Where are steel prices headed?

 

A: Steel prices are quite stable and they are still increasing, but that is primarily because of the cost pressures that we have. There has been tremendous cost pressure in the steel industry. Iron ore is up three times. I think they are driving us to increase their prices. The mining industry clearly has its own demand-supply issues. There is a constraint on the global world and they are consolidating.

 

Why is oil at USD 135 per barrel? Why are steel, ore and coal prices going up? The answer has to do with rapid industrialization. Since World War II we have had a couple of hundred people industrializing every decade. You had the US first and then Europe, Japan, Korea et cetera.

 

Today we have over 2 billion industrializations, some in India, China, Brazil, Russia, which is creating a tremendous strain on resources and commodities like steel, oil, iron ore, coal are in tremendous demand. I think there is a price escalation as a result.

 

The majority of cost for the steel industry is raw material. Hence we are struggling very hard to catch up. We have a lot of contracts in which we are losing money because the cost increase is so tremendous. That is clearly frustrating. We hope to correct that situation in 2009 and be able to earn reasonable cost of capital.

 

Q: Is there room for prices to move up significantly from these levels?

 

A: I think there is. It is all cost driven. So, there is no choice as such. The steel industry has to cover its cost of capital. So there is room for prices to go up. Steel is a very valuable product.

 

The most important thing is containing cost inflation in our raw materials - iron ore and coal

 

Q: Speaking of iron ore and the raw material costs, do you think the cost increase there has peaked or is there further room for prices to go up on that front?

 

A: It depends a lot on the demand environment. If the demand environment is as strong as it was historically, then I think prices will continue to rise. However, if there is some moderation in demand, then I think prices may stabilise or partially decrease.

 

Q: Does demand looking like it is moderating at this point?

 

A: At this point, there is no global economic slowdown.

 

Q: You are not part of that camp that feels that you have got it happening in the US, now India and China are likely to slow down, interest rates are moving up, the oil shock that most of the economies are dealing with. But you are saying you are not really worried about the slowdown?

 

A: I am not saying I am not worried. I am saying today there is no slowdown. Today, you have a consumer economy, which is weak in the US and clearly there is a credit crisis. That is playing out on a global basis. That will have some impact. Industrial economy on the other hand is very strong and that is why you have oil still at USD 135 per barrel and reaching new highs.

 

If people were worried about a global economic slowdown we had see a correction in oil, and a lot of these commodities. There has been no correction so far. I agree with you there are certain indicators that are not very positive such as high inflation, increasing interest rates, and fuel subsidies that are going on. But there are also other indicators that are still pointing to tremendous growth. If India does not grow at 9% it will still grow at 7%, which is still fine. If China is not growing at 12% it might still grow at 9% or 8%, which is still fine. So, fundamentally I still believe that there is perhaps a reduction in growth. But there is no global economic slowdown.

 

For Aditya, family ties have turned into business bonds. Learning the ropes from his father, together they formed a formidable team that creating waves across the world.

 

Q: Is there a succession plan in place or is there a even need for a succession plan really?

 

A: Mr. Mittal is very young. He is very dynamic.

 

Q: He is not retiring anytime soon, is he?

 

A: No, I don’t believe so.

 

Q: Is there a timeline in either of your minds in terms of when the handing over and the taking over will take?

 

A: There is no timeline. I don’t feel there is a need. We are both doing our respective things and are enjoying. Apart from M&A, I am in charge of operations in America, which has been a fascinating experience for me. I jokingly say, I run the second largest steel company in world after Arcelor-Mittal because actually, it is a second largest. It is larger than Nippon or Posco, which are my area of responsibility.

 

I may not succeed; it is almost a curse, to be called the heir or the parent or the natural successor. I remember in school, you would look at someone and say, that guy will do really well. But you never hear of that guy.

 

Q: But you’ve done it? Now it is question of whether you take on the mantle or do you don’t take? Surely it is more choice than anything else.

 

A: We should make you a board member.

 

Q: No, but seriously?

 

A: It is the board which has to finally decide whether I have done it, whether I am successful and whether I am capable or not?

 

Q: But that’s what you want?

 

A: I don’t know if that’s what I want. I have done a lot of that already. It has been great working in this company. It would be nice obviously but what I want really is this company to flourish and what's right for this company - that’s the most important thing because there is no point in destroying this company or the legacy it has in the steel industry.

 

Q: WL Ross who was the board member of the company said that this relationship between a father and son is tricky thing but you guys have gotten it right and we are seeing this playing out in business families across the world especially in India - fathers and sons, brothers especially - how have you managed to get the equation right? How do you sort of get this working equation?

 

A: Communication and trust. We communicate a lot. We meet each other literally everyday. If we are traveling, then we are on the phone - 3-4 times. He would tell me everything he is doing which is of importance and I do the same and if we don’t agree then we don’t do it or I won’t do it. That partnership, that level of trust is what we share.

 

Q: Who gives in more often?

 

A: I don’t think we actually have to give in. We tend to agree and if we don’t agree then we try and convince.

 

Q: Has there been any major disagreements?

 

A: Everyone asks me that question and I would not hear if there were any and that’s important as well because I don’t think I can be passionate about this company, passionate about its direction and future if I don’t disagree with the direction that it is taking and the same is true for him as well. We both love this company so much so we have to come to an agreement on how we move forward and we have to believe in that. Otherwise one loses your passion then you are just an employee or just a professional who is not motivated and excited because even people who work in this company have the same level of responsibility and the same level of trust. When they come and talk to me or to their bosses, they want to know if they have a strong view, it is understood, entertained and is acted upon.

 

Q: One of the important things that very often nobody really talks about is the role that the women within the family have played. From your mother, to your sister, to your wife who I believe was a former Goldman Sachs Banker. How important has their role been in really making Arcelor-Mittal what it is today?

 

A: You should ask them.

 

Q: But give us your sense?

 

A: They have been great support to us. My wife has been incredible. She was pregnant while we had the Arcelor-Mittal deal going on and if I was very, very tired then she would put her cravings aside. So she was great.

 

Q: I believe it took a year for you to actually get her to accept your offer in that sense when you were wooing her?                             

 

A: You know too much. It took me three-years.

 

Q: Was that the hardest deal?

 

A: It was the best deal. It took three-years. I saw her. I feel in love with her. She was me. She hated me.

 

Q: What did you do?

 

A: I was too aggressive. Too bold I must say. I asked her out too quickly.

 

Q: So what works in business does not necessarily work?

 

A: There were too many people after her. So I was one in the crowd. I had differentiate and that took me about three-years to differentiate myself and I only began to differentiate myself when I actually left university. I was working in New York and I went back to Philadelphia where she was still there and I began to see her and then it was a hard to have a long distance relationship. She went back to India. I was between New York and London. So we got engaged, got married.

 

But coming back to the one when I think my mum has been tremendous to my father. She helped him out initially in Indonesia and she has always been there for him, supporting his travels, hard work.  

 

Mittal: I don’t know whether you know it that India has the highest mortality rate in the world. One in fourteen don’t make it to the age of five, which is a disaster actually. And I have two young kids and there is an emotional attachment because when you have your own children, I realize how fortunate we are, we can provide them with everything, good education, food and health and it burns my heart when I think of other parents who have kids and equally cannot do the same. So we want to do something in that regard. We have done something in London; we are doing something in India. So that’s an area where I can hopefully spend more time on and focus more.

 

Q: There is so much written about the lifestyles of the rich and famous of some stuff and flying off every other day for lunch and dinner. How different can life be with that sort of money, what does money really mean to you in that sense?

 

A: It’s not that glamorous as you may get out to be.

 

Q: So you say it’s not as it seems?

 

A: No, not at all. Money is a sideshow; it is something that perhaps you can measure success by where you are in life. But it is really a sideshow. You don’t get passionate about money; you get passionate about things or people, about your family, friends and this company at least for me.

 

Q: Have your friends remained the same over the years?

 

A: Yes I am very lucky; my friends are exactly the same.

 

Q: Apart from all the deal making and the intuition and the ability to deal with numbers and all of that, what do you think personally in your mind is your biggest strength?

 

A: My boldness. I love to change things. I find a status quo not good enough.

 

Q: And that’s the philosophy of the company now, isn’t it? That boldness changes everything?

 

A: It captures the ethos of the company, the energy and the speed in which you want to move and today if there is a proposal that is difficult, every one would write, this is bold. So they are trying to convince me as well.

 

Q: Where do you actually see yourself in 5 years? What are the goals that you have set your self?

 

A: Maybe I will be sitting with you again in five years. By then I would have lost my so-called untrue bollywood charm, unfortunately. Age does that to you, I don’t know if I have it today but probably will lose that.

 

Q: You’ve got age on your side, you are 32.

 

A: Hopefully still the CFO of the company and hopefully the company will be different, it will be a metals and mining major. I hope to sit here and tell you about our achievements in India, which we will be proud of because it’s our most important priority that we have a steel plant up and running and that we are doing a great job and we are providing the best quality steel in our country. And not only that, but also to create a sustainable steel environment, taking care of the community around the world in which we operate.