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Why have not minimills disrupted the Indian steel incumbents?

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  • Chakunnath Madhusudan
  • Ramasamy Panneerselvam

Abstract

The theory of disruptive innovation successfully explained how incumbent integrated steel plants in the US were toppled by entrants using the disruptive minimill technology using steel scrap. The post liberalisation Indian steel sector has been dominated by new steelmakers, many of them using latest minimill technologies. Yet these entrants have not been able to dislodge the Indian integrated steel plant incumbents. Our research finds crucial differences between the evolution of the Indian and US Steel sectors. We find that availability of steel scrap is crucial for minimills to become a disruptive technology, which is lacking in India at the moment. We predict the disruption of Indian incumbents if they ignore steel scrap input technologies in the coming years.

Suggested Citation

  • Chakunnath Madhusudan & Ramasamy Panneerselvam, 2021. "Why have not minimills disrupted the Indian steel incumbents?," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 24(3), pages 364-384.
    • Handle: RePEc:ids:ijbire:v:24:y:2021:i:3:p:364-384
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    Cited by:

    1. Qiu, Ziyang & Sun, Jingchao & Du, Tao & Na, Hongming & Zhang, Lei & Yuan, Yuxing & Wang, Yisong, 2024. "Impact of hydrogen metallurgy on the current iron and steel industry: A comprehensive material-exergy-emission flow analysis," Applied Energy, Elsevier, vol. 356(C).

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