Alliance Boots, the pharmacy, is poised to form a partnership with India's Reliance Industries that would bring the retailer to the subcontinent.

Reliance, a petrochemicals giant that is controlled by the billionaire Mukesh Ambani, is looking to transform itself into a major force in Indian retail with the help of several British high street stalwarts. It already has deals in place with Marks & Spencer and Hamleys.

It is understood that Boots, which last year became the first FTSE 100 company to be bought out by a private equity group when KKR acquired it for £11 billion, has held discussions with several Indian players, but that those with Reliance are well advanced.

It is thought that Boots and Reliance are considering an equal joint venture for a wholesale business and plan to operate retail stores through a franchisee agreement. Indian rules would prevent Boots from holding a majority stake in a retail operation.

Boots has said it intends to tap developing markets. It recently signed an agreement to enter the Brazilian pharmaceutical wholesale market through the acquisition of 25 per cent of Athos Farma in Brazil.

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