India nevere fails to procrastinate..

No room for organic growth in India; looking for buyouts: Mittal
3 Dec, 2007, 2120 hrs IST, PTI


LONDON: World steel leader Arcelor-Mittal sees little opportunity for organic growth in India, where two of its greenfield projects have been suffering from procrastination.

Instead, Arcelor Mittal CEO Lakshmi Mittal feels acquisition is the way to grow in the sub-continent nation where he hails from.

"In India, we hardly have any opportunity to grow organically and we are considering purchases that will enable us to participate in the growth process of this country (India)," he said in an interview with Spanish daily Gaceta de los Negocios.

In 2005, Mittal had signed an agreement with Jharkhand government in India for a Rs 40,000-crore steel plant, which has been facing delays in getting clearances. Mittal also announced an identical project in neighbouring Orissa the following year.

However, work on the projects is yet to commence. "We have always focused our strategy on the emerging markets, which is where the real opportunities (exist). India and China are the two main (markets)... we have big plans for both, but different strategies."

Only last month, Arcelor-Mittal acquired a 72 per cent stake in China Eastern Group.