Convert files in the Google documents list to a Google Docs format

If you have uploaded files into your Google docs document list, you can now convert these files into Google Docs format by right-clicking on the document. In addition, both image files and .pdf files can be converted to text via Optical Character Recognition (OCR) technology.

See the link below for more information and a list of file types that can be converted.

Source: Convert files in the documents list to a Google Docs format - Official Google Docs Blog