After Mukesh Ambani's Reliance Group and Bharti Enterprises, the Tata Group on Tuesday announced it would invest up to Rs 400 crore as equity in Infinity Retail, which will sell consumer and electronics goods.

Infinity Retail will be a wholly-owned subsidiary of Tata Sons and will operate national chain of multi-brand outlets of consumer electronics and durables.

The Tatas have entered into a technical and sourcing agreement with Australia's largest retailer Woolworths for its retail foray.

"We are sharply focused on retail and our foray into consumer electronics and durables will further strengthen Tata's presence in the growing retail industry," said Tata Sons Managing Director R Krishna Kumar.

Retail consultancy Technopak Advisors has estimated the size of Indian retail industry at nearly $ 300 billion and predicted its growth to $ 427 billion in the year 2010. Kumar said as the market expands the Tatas will also look at investing in other retail formats.

This will be the second venture of the Tatas in retail segment after the Trent Ltd, which runs a chain of department stores under the brand name of Westside.

Meanwhile, Indian retail major Pantaloon said it will form a 50:50 joint venture with UK-based Alpha Airports Group Plc to develop travel retail and food catering business in airports in India.