Online retail giant Amazon is in talks with Spencer's Retail for picking up a minority stake in the food and grocery chain, The Economic Times reported.

The US-based company is also in talks with the Aditya Birla Group on buying stakes in its More chain of stores and is likely to partner with Samara Capital and other investors to fully acquire the business, the report said citing two people with knowledge of the matter.

The e-tailer is also aiming for a minority stake in Kishore Biyani’s Future Group.

If all the three deals succeed, Amazon will have a stake in around 1,700 stores and a mine of data to further its business in India as it seeks to compete effectively with Walmart-Flipkart and Reliance Retail, according to the report.

Amazon is required to have an 'omnichannel' presence in order to make a mark in India’s food and grocery industry, experts told the paper, adding that the strategy is likely to unfold through Amazon’s Prime Now hyperlocal platform that promises two-hour to same-day delivery of food and grocery.