Atul Kirloskar, chief managing director, Kirloskar Oil Engines Ltd, spoke at the Indian Diesel Engine Manufacturers' Association (IDEMA) biennial general body meeting at Pune recenlty. He painted a bleak future for the industry and pointed out that with seasoned international players consolidating their position in the country and foreign manufacturers moving in, Indian manufacturers face challenging times.

The last two years, according to him, have been very difficult with slowdown and heavy pressure on margins in the industry. The industry would also require heavy investment if it has to produce environmentally friendly engines to conform with all regulations and norms, he said and explained that technology pressures could result in industry restructuring, mergers and acquisitions and alliances. The component manufacturers would not be able to remain immune to these changes and would see a lot of restructuring, he said.

Kirloskar said the challenge for the industry was to obtain right technology but as no one would offer technology without equity there was no alternative to in-house technology development and to be able to productionise this technology at affordable costs. He felt that the component manufacturers would play a crucial role in enabling engine manufacturers to take up the challenge. Component makers would have to move to modular systems supplies as has been taking place in the automotive industry with tiered supplies, he said.

According to A R Jamenis, chairman of IDEMA, the all India diesel engine market during 1998-99 was around 9.2 lakh units. The technology absorption process for achieving lower polluting norms has gained momentum among all manufacturers. IDEMA is trying to arrive at a new improved standard proposal for control of noise and emissions of stationary diesel gensets and if approved by the Central Pollution Control Board it could drive the DG set engine industry to supply engines confirming to basis Euro norms.