"With stateoftheart R&D centres in Italy, the US and India, we strive to give the very best in to the market in India and abroad. Our R&D is continuously working on development of compact, lightweight and fuel efficient engines," says Sudipto Mukherjee, General Manager Marketing, Lombardini India. Excerpts from the interview. What is the present state of the diesel engine manufacturing industry in India the total market size in the 7 to 150 kW segment? Diesel engines are the leading prime movers for agricultural construction, industrial and power generation applications. Diesel engines are manufactured in both aircooled and water cooled versions. Suppliers are regularly upgrading and improving engine manufacturing facilities to ensure the requisite quality at competitive cost. Suppliers are focused on offering eco friendly engines. The Indian diesel engine industry is estimated to be more than $23 billion, even if we exclude the captive engine manufacturing of automotive companies.Out of this, what is the market for construction equipment segment? What about the Kohler footprint in this segment? Studies and reviews state that the Indian construction equipment market recorded strong growth until 2007, before the global economic crisis and subsequent reduction in the availability of credit in India caused the market to decline. As a result of this decline, the market recorded a CAGR of around 20 percent over the review period. In 2009, the construction equipment turnover stood at $1.5 billion, which represented a decline in comparison to the value from the previous year.However, the construction equipment market has shown signs of recovery since the last quarter of 2009 with the easing of the lending activities by the banks.Over the forecast period, the growth of the market is expected to accelerate as a result of the resumption of delayed projects and new investments into construction projects in the country. Therefore, Kohler expects the Indian construction equipment market to register a CAGR of around 30 percent during the forecast period, to value $6 billion in 2015.What are the major challenges that blunt the growth of the industry?The rise of commodity prices had a strong impact, especially because the increase in costs cannot be passed on to the customers. Delaying launch plan of CRDI engines for off highway applications is basically to the lack of a clear cut fuel road map.What is the response so far from the OEMs, and usersegment for the India Stage III based on EU Stage IIIA? The change to StageIII had marginal impact on engine technology, after treatment and prices. The real change will come as and when the StageIV gets implemented.How do you view the demand for your products in future? Looking at the strong technological backing of Kohler with our ever enhanced global supply network, we are expecting a bright and green future for all our products.What is the potential for the export of engines? Kohler has foot prints in over 85 countries in the world and we supply to some of the companies in Europe and US through our parent companies sales network. However, seeing the growing demand in the domestic market, we need to cater to that demand first, from our factory at Aurangabad.