Future Group, which owns the Pantaloon Retail chain, is in talks with Japan's convenience store chain Lawson Inc to sell a 49 percent stake in its foods sourcing and manufacturing operations, the Economic Times reported.

Future Group has signed a memorandum of understanding to form a joint venture with Lawson that could see Japan's No. 2 convenience store chain buy into a holding company controlling many of Future's foods businesses, the newspaper said on Wednesday, citing sources.

Future Group and Lawson could not immediately be reached by Reuters for a comment.

Financial terms of the planned joint venture have not been finalised yet, one of the sources told the Economic Times, adding the Japanese firm could invest about 30 billion rupees ($624 million) in the first tranche of funding.

In June, Lawson said it planned to step up its overseas expansion to tap strong growth in Asia.