Huge organic growth opportunity for Wal-Mart.
In our six government meetings, we created a very positive image [of Wal-Mart] in what we think is a very important future market, ... We've energized the FDI lobby and preempted the anti-FDI lobby in India. I believe we've told our story.
But it appears that a number of factors may change that.
The average urban household income in India is about $3,000 a year, roughly in line with China, and the consuming class has grown from 35 million families in 1996 to an expected 80 million this year. That's roughly in line with the U.S., ... This is a very big opportunity for us.
India represents a $250 billion retail market, growing 7.2 percent a year, but modern retailing is just starting to emerge This shows us that India is a huge organic growth opportunity for Wal-Mart.
This investment is intended to give Seiyu increased financial stability and continue strengthening Wal-Mart's presence in the second largest retail market in the world.
Take advantage of this market while it's still developing.
We believe our investment will add strength to the partnership by helping to keep prices low for consumers and will offer new opportunities to suppliers in the region for additional business development.