Reliance may buy Arvind denim fabric to sell low priced jeans at outlets
07 Dec '06
1 min read
As global retailer Wal-Mart prepares for its entry in the Indian retail sector, relatively new entrant Reliance Retail is readying to capture a major share of the low priced jeans segment; a prime product that tops sales charts at the former's stores in the US.
Wal-Mart sells its low priced jeans at about US $10, while Reliance plans to sell them at INR199 (just below $5) at its hypermarkets.
Ahmedabad based Arvind Mills Limited, one of the world's largest denim fabrics and jeans maker is likely to create a fabric that will sell at Rs 40 per metre for Reliance.
At this price, Reliance will book losses but will help attract crowds at its retail stores even as consumers will buy for more.