Mittal is the world's largest producer of long products using the DRI/EAF/CC (Direct Reduced Iron/Electric Arc Furnace/Concast) route. Metal Bulletin Monthly of April 1998 has brought out a special supplement on his far flung empire and the expertise that has helped him build the biggest steel empire in the world in a span of 10 years.

For Mittal the goal is to produce low cost and best quality steel in the world. Mexico Ispat uses DRI technology to produce steel.

"We currently produce hot metal at $160 per tonne which is the price most mills pay to buy scrap. So we are looking for that kind of situation, where we are the lowest-cost producer."

Mittal used steel from the integrated mini-mill process and also the largest producer user of DRI. Hesays the average cost for DRI is $84 per tonne which he claims gives him an advantage over scrap. They have developed a continuous charging system for using DRI while most producers use the batch process. Some of his plants use 97 per cent DRI and no scrap. In a few years hot charging of DRI should be possible to reduce cost further.

The foundation stone of Mittal empire was laid by ML Mittal, in Indonesia in 1978 with a 80,000 tpy EAF plant where the son LN Mittal learnt his ropes and today the plant has a capacity of 850,000 tpy.

Many thought that LN Mittal will spell doom when he acquired a steel plant in Kazakhastan in 1995. Ispat Karmet with a capacity of six million tonnes, coal mining was loosing heavily.

Mittal has been able to turnaround this sick giant and production has now increased by 50 per cent since its acquisition.

Now Mittal has acquired Inland Steel for $1,430 million and reportedly is bidding for some Polish Steel Plants in association with Thyssen Krupp on a 50-50 partnership.Apart from the DRI/EAF route what are the other ingredients that help produce best quality low cost steel. It is the quality of management and leadership provided.

Some of the experience of LN Mittal may be of use to Indian steel producers particularly to Sail.

In Canada while taking over the company he told the managers that wage cost should not exceed 10 per cent at the revenue and gave a business plan to work on. There are lessons for India in Mittal's adventure. DRI/EAF/CC may not be the route it may be BF/BOF/CC route but there are ways to turn around many of the problem units in India if there is right kind of management and leadership.