Indian retail group Pantaloon is planning to place its Big Bazaar, Food Bazaar and related formats into a wholly-owned subsidiary with a view to enable capital infusion.

The drop down is subject to shareholders consent and any other statutory or regulatory authorities, the company said.

It follows a board meeting at the company last week (30 October).

Pantaloon said in a statement that its value retail business - led by Big Bazaar and Food Bazaar - has "gained tremendously in size and scale and emerged as a market leader in modern retail".

The company operates 119 Big Bazaar stores in over 70 cities across India and plans to expand and operate close to 275 stores by 2014.

Pantaloon's board also considered plans to consolidate its investments made in the financial services business of the company, a statement added.

Kishore Biyani, managing director, Pantaloon Retail (India) Limited said: "In the last few years, the company had forayed into allied businesses in the consumption sector with a view to strengthen the retail business as well as leverage on new opportunities that the Indian economy provides.

"In order to unlock more value for the shareholders, the management had proposed to independently govern and build these businesses, while retaining the character of Pantaloon Retail as a pure retail play, focusing on retail businesses."