Reliance In Readymade Apparel Thrust

Reliance Industries, the Rs 13,404-crore textiles-to-petrochemicals major, is readying to make a splash in the readymade garment sector by launching brands under the Vimal brand name.

Focused so far on mainly suitings, shirtings and sarees, Reliance wants to extend the Vimal name to cover items like jackets, T-shirts, trousers and possibly jeans.

Sources indicated Reliance is seriously looking at jeans and other denim products now dominated by Arvind Mills.

Trial runs have already begun in some southern markets.

Some retail outlets have been selected to market the jackets.

Industry sources close to the company said the move is based on an internal report prepared by its textiles division based in Naroda, Ahmedabad.

 

The division felt readymade garments presented a good potential not yet fully tapped.

Readymade garments are priced higher than ordinary fabrics and would realise higher value for the company. Reliance's range now includes sarees, suitings and shirtings (under Vimal), sleep products like SlumbeRel and furnishings under the Harmony brand name.

Readymade garments and fashion accessories would complete the range of textile products offered by the company.

The readymade garment sector is cluttered with several labels, both big and small like Bombay Dyeing's Vivaldi, Arvind Mills' Newport, Ruf and Tuf, and Arrow shirtings, Zodiac Clothing, Coates Viyella's Van Hausen and Louis Phillipe, Siyaram Mills' Oxemberg, Raymonds' Park Avenue and Pantaloon Fashions.

RIL would directly pit itself against these companies, all of whom are striving to gain a comfortable market leadership position in this highly competitive segment.

The criteria for success, analysts say, hinges on price, quality and the fashion statement the product makes.

Sources indicate Reliance may farm out manufacturing activities for its apparels on a contract basis.

Considering the company's focus on housing its own activities, sources sayReliance may also make room for producing garments at its textile complex at Naroda.

Reliance's textile complex has activities ranging from spinning, weaving, crimping, texturing and dyeing of yarn, warp knitting, fabric designing, printing and processing.

It contributes hardly three per cent to the company's total turnover. It also has Asia's largest design studio.

The textiles division has three brands Vimal, Harmony and SlumbeRel. Vimal will now market apparels besides suitings, shirtings, dress material and sarees, Harmony has furnishing fabrics, day curtains and automotive upholstery while SlumbeRel brand encompasses sleep products like fibre filled pillows.

Even as the local demand is much higher, Reliance is also eyeing a global market for its garments.

Exports of garments have been growing with it touching Rs 13,295 crore in 1996-97, according to the latest survey by Centre for Monitoring Indian Economy (CMIE) in Industry Market Size & Shares.