The UK retailer may hold majority stake in the venture. Reliance Retail, the wholly owned subsidiary of Reliance Industries [Get Quote], is close to finalise a joint venture with UK retailer Marks & Spencer.

Sources familiar with the developments said while no formal deal has been signed as yet, the partnership deal may be signed by next month.

M&S may hold a majority stake in the venture and the final contours of the partnership are being finalised. India allows 51 per cent foreign direct investment in single-brand retail and 100 per cent in cash-and-carry operations. Multi-brand retail is barred for foreign companies and investors.

Reliance Retail spokespersons did not want to make comments. M&S spokespersons could not be reached for comment. One of the UK's leading retailers of food, clothing as well as home products, M&S employs over 75,000 people and has over 600 stores in the UK and over 275 stores in 39 territories around the world.

In India, the company has a dozen stores run through a franchisee agreement with Indonesia-based non-resident Indian BP Sharma, who was recently in the news for trying to bring coffee chain Starbucks to the country.

Sharma is the promoter of Planet Retail, the company which runs the M&S franchise. It is not yet known as to what the future of this partnership will be.

M&S is keen on growing its business in India, where organised retail constitutes a minuscule portion of the annual market of $7 billion (Rs 28,000 crore) for retailing. It has recently decided to ramp up its presence and address the large market opportunity that India represents.

As part of its strategy, M&S has addressed the mass market by cutting prices of its merchandise by up to 40 per cent.

The company also plans to increase sourcing from India.

Reliance Retail has around 540 stores across the country in multiple formats.