As India moves to tighten regulations to curb industrial and vehicular emissions as part of global effort to fight climate change, multinational engine filtration solution provider Donaldson is hoping to see a big jump in its annual revenues from the Indian market in coming years, says the company’s head for global operations.

The government plans to implement Euro-IV and Euro-III norms for vehicular emissions from April 1, 2010, in metro and non-metro cities respectively. Meanwhile, hopes for adding gas-based power generation have also revived in the wake of huge discoveries reported in the Krishna-Godavari (KG) basin in recent years.

India currently accounts for 1% of the company’s total revenue.

“We plan to increase our Indian market revenue share from 1% to 5% over the next five years,” Bill Cook, Donaldson Filtration Solutions’ chairman and chief executive officer (CEO), told FE. The company mopped up $1.869 billion in revenues from its global operations in the financial year ending July 31, 2009.

“The company sees its annual revenue from auto sector growing at 15-18% while at 10-15% for the power sector,” Cook said. Domestic tractor manufacturer BHEL and Mahindra and Mahindra are Ronaldson’s customers in the Indian market. Besides, the company is also meeting filter requirements of multinationals like Caterpillar and Daimler Chrysler for the Indian market.

To comply with the Indian government’s directive on implementation schedule of Euro-III and Euro-IV norms, Donaldson’s customers from the Indian automobile sector are making changes in their engine designs. That entails changes in filter design too.

“India is going to be very significant for us 5-10 years down the line,” he added.

“In comparison, Donaldson hopes to increase its revenue share from the China market from 6% to 10% during the same period,” the company CEO said.

Cook said that unlike India, China has not made any major gas discoveries in recent years. Further, quality of its coal deposits is better and hence its dependence on gas-fired generation to fight climate change is relatively less. However, China is also adding gas-based power generation capacity, mostly in the vicinity of LNG re-gasification terminals.

The Minnesota-based company manufactures air and liquid filters for various sectors including power, transportation and construction industry. The company operates in the Indian market through its subsidiary, Donaldson India. It has manufacturing facility in Gurgaon which became operational in 1994. Initially, it was producing air filter for gas turbines. But the capacity was later expanded in 1999 to produce filters for diesel-powered transportation and construction equipment like trucks, tractors, excavators and dumpers as well.

The company has manufacturing facilities at 40 locations across the world.