Indian fashion company Colorplus has hit back at rumours of a sale saying that it is about to launch plans for diversification into medium priced segments.

The makers of Ambattur clothing claimed the reports that it was to be an acquisition target for one of the country's larger players Raymonds, was baseless speculation.

Rajendra Mudaliar, CEO of the company told Asia Pulse that: "All such things are rumours and remain so; we have no intention at all to off load our equity."

He also added that the company would not be linking up with any of India's top designers to enhance the company's clothing range, but would be relying on those currently working in the company.