The sources said the talks with the private equity firms were ongoing, and no decisions had been made as to the exact amount of the stake sale.
"At this point in time, we cannot give a time frame for the conclusion of the deal," said one of the sources.
When contacted, Ramesh Kalyanaraman, executive director of Kalyan Group, said the company is in talks with various investors, but declined to name them or provide details.
Temasek, TPG, and Blackstone Group LP each declined to comment.
Kalyan Group, based in southern India, runs silk and jewellery retail chains across the country.
The company has annual revenues of 94 billion Indian rupees ($1.54 billion) and hopes to touch 150 billion rupees next year. It also plans to expand into Malaysia and Singapore next year in anticipation of a potential listing in 2-3 years, Kalyanaraman said. ($1 = 61.1400 Indian Rupees)