NK Minda Group, one of the leading manufacturers of automobile components, has entered into a joint venture with Italy-based Emer to manufacture and sell alternate fuel systems.

Both partners have earmarked an investment worth Rs 40 crore in the next three years for this purpose.

The new JV company which will be known as 'Minda Emer' will exploit the global design, production and distribution strengths of parent companies to deliver gas fuel systems to the global market.

Under the arrangement, where Emer will supply technology, design and testing, while on other side Minda will provide production competencies and market development services. The products from the JV are expected to hit the Indian market by March, 2010.

Besides producing and supplying kits to the original equipment manufacturers, the JV will also manufacture kits for the retail market for retrofitting.