Deere forms backhoe, loader venture in India

Financial terms of the deal between the agricultural equipment maker and Ashok, a unit of the Hinduja Group, were not disclosed.

Initial production is planned for early 2010. The companies are evaluating potential sites in India on which to build a manufacturing facility.

Ashok Leyland has a broad dealer network in India--the world's largest backhoe market in 2007--and exports to more than 20 countries.

The India venture marks Deere's latest investment overseas. In addition to being a major seller in South America, Deere in February announced a joint venture to build construction equipment in China. The company has been weathering the domestic downturn by drawing a larger percentage of its business from outside the U.S. and Canada.