This might not be the answer you're looking for, but I strongly recommend you NOT going this way. Running batch file from inside the MSI package has a number of disadvantages, which will shoot you one day:
- antivirus might block the execution
- as for any deferred custom action (the one which changes the target system state) you'll have to create a rollback action, and for a batch file which might include a number of steps of different nature it could be much more difficult
- you don't have the progress (I doubt this is at all possible for batch script)
Instead, I encourage you to do the following:
- analyze your batch script and make a list of exact things it does to the target system
- take a look at the standard Windows Installer functionality and WiX extensions to see what's there out of the box
- design your installation to use standard functionality as much as possible and custom actions as little as possible
- if you still need a custom action, stick to the DLL ones and make sure rollback actions are present for deferred actions