Pakistan-based fashion retail chain Sefam plans to expand its presence in India, soon after the government gave nod to boosting foreign direct investment (FDI) flows from the neighbouring country.

The company aims to set up 200 more retail locations across Delhi, Mumbai and smaller cities in India by 2015, reported The Economic Times.

Sefam international business head Zain Aziz told Business Standard that the firm would roll out its expansion from the cities up in the fashion quotient, mainly Delhi and Mumbai.

As the luxury market in the country is spreading beyond the big cities, the fashion chain plans to enter tier-I and tier-II cities, such as Chandigarh and Ludhiana too.

The firm will set up outlets through franchisee model and brand-owned stores, but opening 100% owned shops may still be a distant dream, because of the sourcing conditions attached to single brand retail FDI norms.

The government has hiked the FDI limit to 100% from 51% in single brand retail, but made it mandatory for foreign chains to source at least 30% of the material used from India.

"We use a mix of in-house production, majorly," Aziz said.

"We are planning to set up an Indian fashion house, which would create products based on Indian fabrics and designs and sell it in Pakistan. We will surely be sourcing Indian fabric then.

"We will look at opening flagship stores after setting up considerable number of franchisees, pan-India."

The fashion chain has a range of eight brands, including its flagship ‘Bareeze’ and it has a retail presence in over seven countries, including Canada, Malaysia, Norway, Pakistan, the UAE and the UK.

Currently, the retailer runs a single store in New Delhi, which it set up more than a decade ago through the franchisee route.

Following the huge response to Lifestyle Pakistan exhibition held in Delhi in April 2012, several other Pakistani brands are also ambitious about expansion plans in India.