The food processing industry in India is a sunrise sector that has gained prominence in recent years. The average annual growth of the food processing industry has been around 8% between FY 2001 and FY 2006 and as a part of total manufacturing accounts for 9%.

The food processing industry in India has taken off substantially and will continue to grow rapidly considering the untapped potential in the sector. The growth in this segment not only indicates the changing development patterns of the country similar to the developed nations.

The Ministry of Food Processing Industries, Government of India has estimated the size of the Indian food market at US$ 191 bn (Rs. 8,600 bn). The processed food market is projected to be over US$ 100 bn, of which the primarily processed food market account for 60% while the value added processed food is around 40%.

The Ministry of Food Processing Industries, Government of India, has projected the organized food retail industry to grow by 30% for the next five years. Indian corporates who have already ventured into this segment include ITC, Bharti, Reliance, Aditya Birla group, Subhiksha and Future Group.

Eyeing an acute shortage of hotels in India, hospitality majors are likely to pump in close to Rs.4,500 crore in new projects and expansion over the next two years on the back of a massive growth in business and leisure travel. Indian Hotels (Taj Group), Leela Venture, Oberoi Group, Kamat Hotels, Royal Orchid and other leading chains are likely to see room inventory go up by around 6,500. Global hospitality majors such as Intercontinental, Starwood, Hilton, Accor, Carlson are all stepping up their global offerings in the India Market.