Future Group is in talks with a clutch of potential buyers including JPMorgan and

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Kohlberg Kravis Roberts and Co to sell its financial services arm, Future Capital Holdings , three sources with direct knowledge of the matter told media.

The group, which has hired Morgan Stanley to run the sale process, is also in talks with Indian business conglomerate Piramal group, said the sources, who declined to be named as they were not authorised to speak to the media.

Future Capital, which has a market value of $214 million, is a non-bank finance company that makes consumer and mortgage loans.

Future Group and the Piramal group declined to comment, while JPMorgan did not return an e-mail seeking comment. An official with U.S.-based private equity giant KKR was not immediately available for a comment.

The controlling shareholders of Future Capital run India's largest retail chain by market value, Pantaloon Retail and consider the finance unit a non-core business, according to a source.

The Mumbai-based Future Group owns 54 percent of Future Capital, which has more than 30 bn rupees ($653 million) of assets.

The Piramal group's Piramal Healthcare unit said in May it was entering the financial services business. Piramal Healthcare is armed with a war chest after selling its domestic formulations business for $3.7 bn.