Reliance Capital, the Indian financial services firm owned by billionaire Anil Ambani, has expanded its partnership with Nippon Life in a deal that explores the sale of some of its businesses to the Japanese insurer.

The asset management and private equity divisions are initially being considered for strategic tie-ups involving Nippon taking a stake in the India firm, according to local media. Reliance is also reportedly looking to manage assets for Nippon Life's funds in India and partner in other growth economies. 

In March, Reliance sold 26 per cent of Reliance Life Insurance to Nippon, which is the largest stake in an insurance firm that a foreign company is allowed to own, according to Indian regulatory limitations.

"Nippon Life has already agreed to be our partner in the life insurance business, and we see great potential to work together across our other financial services businesses," said Anil Ambani, the chairman of Reliance Capital. 

Reliance has a large asset management presence in the country through Reliance Mutual Fund, reporting Rs1.01 trillion ($22 billion) in assets under management. Its other businesses include mutual funds, pension funds, hedge funds and managed accounts.