Indian food and drinks giant Godrej is in talks with the owners of local retailer Pantaloon Retail over a joint venture that would expand its rural retail chain Godrej Aadhar.

The venture is expected to be announced within a month. "We are in discussions at the moment and a strong partner would benefit our expansion plans," Godrej chairman Adi Godrej said.

The Godrej Aadhar retail business has 70 outlets the company has ambitions to increase that number to 1250 within the next two years

Rural retail is a tough market and the joint venture will leverage on the strong rural distribution networks of an FMCG company like Godrej.

For Godrej, the venture would mean more funds to expand rapidly and benefits from the experience and expertise of the Pantaloon, which is owned by Indian conglomerate Future Group.