"We are forced to improve management efficiency and lower operation costs. But there is a limit. Our price advantage is diminishing, and we are considering opening production plants globally," Xu says.

The Indian market now comprises more than 30 percent of the total revenue of Power HF, which has bigger plans.

"Currently we mainly provide maintenance services for the engines of the telecom base stations. In future, we hope to offer maintenance of air-conditioners, antennas and other equipment at the stations, based on our established network," says Xu.

He also wants to help other Chinese enterprises expand abroad. "The only way for Chinese equipment manufacturers to deal with the problem of excess production capacity is to go abroad," he says.

"With our network and team in India, we can be sales and service agents of Chinese manufacturers of engineering and agriculture machinery, since the engine is the basis of their products," Xu says.

The firm is eying other countries and regions, with Africa as the next key market.

"We want to copy the successful model in India, but adjustments must be made according to the situation in different countries," Xu says.

When Power HF entered India, the enterprise redesigned its products according to the hot and humid environment. Since India has stricter noise restrictions, it also adjusted their engines to reduce noise.

"Now we are entering Egypt and we must take the heat, wind, sand and dust into consideration," says Xu, adding skilled workers were harder to find in Egypt than in India, so training maintenance workers will be given priority.

"The quality of Chinese machinery is already world level. But Chinese machinery manufacturers must focus on service if they want to go abroad," Xu says.