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Best Business Opportunities in Bangladesh - Identification and Selection of right Project, Thrust areas for Investment, Industry Startup and Entrepreneurship Projects

Bangladesh representing a potential market in itself (and potential access to the much larger South Asian market) Bangladesh also offers considerable potential as a base for labor-intensive manufacturing. Low-cost labour is the factor most often cited by the private as well as the public sector in Bangladesh when asked to name the most attractive features of the country. In addition to its large population and low-cost labour, Bangladesh offers major reserves of natural resources, in particular natural gas.

Bangladesh is a moderate, secular and liberal democracy with immense potentials. It has earned global reputation in poverty alleviation, primary school enrollment, women empowerment, family planning, infant, under-five mortality rate and maternal mortality ratio reduction, lowering number of communicable diseases and child immunization.

Bangladesh is in the process of a transition from a predominantly agrarian economy to an industrial and service economy. The private sector is playing an increasingly active role in the economic life of the country, while the public sector concentrates more on the physical and social infrastructure. Bangladesh has great ambitions that offer great opportunities in the energy, Agriculture, transportation and environmental sectors for the best domestic as well as international enterprises.

Business Sectors and Thrust Areas in Bangladesh

Agriculture Sector

Bangladesh is well known for its progress in human development. The economy of Bangladesh is primarily dependent on agriculture. About 84% of the total population lives in rural areas and are directly or indirectly engaged in a wide range of agricultural activities. Bangladesh has the essential attributes for successful agri-based industries namely rich alluvial soil, a year-round frost-free environment, available water and an abundance of cheap labor. Increased cultivation of vegetables, spices and tropical fruits now grown in Bangladesh could supply raw materials to local agribusiness industries for both domestic and export markets.

Agriculture plays a key role in Bangladesh’s economic growth. Bangladesh’s rural economy, and specifically agriculture, have been powerful drivers of poverty reduction in Bangladesh.

There may be investment opportunities in:

  • Fresh produce production for local and export markets;
  • Production of fertilizers and seeds;
  • Eco-friendly jute production, supported by the jute technology development institute;
  • Aquaculture and Processed fish;
  • Halal foods;
  • Milk and dairy products;
  • Cold storage facilities;
  • Agricultural products for export markets, including herbs, spices, nuts, and pulses;
  • Canned juice and fruits

 

Transportation Sector

Bangladesh's transport and logistics sectors offer immense opportunities for investors, as the country is found most wanting in the area. Improvements in ports, road, rail, and air services are all essential for a country that is in the midst of historic growth.

As of we are a developing country the main development issue is on building the infrastructure to enhance the economic growth as well as achieve the economic freedom. Bangladesh ever since the independence has focused on constructing roads & highways. In last three decades transportation sector & construction of roads has been the top priority of government. Private sector, are ready to invest, in Bangladesh's transport infrastructure and trade logistics, towards Bangladesh's growth. Invest in the country. The government will provide the policy support and security.

Opportunity

  • Replacement and up gradation of old signaling and interlocking system
  • Replacement and up gradation of old signaling and interlocking system.
  • Rehabilitation of old Line.
  • Construction of Railway line from Khulna to Mongla.
  • Procurement of trains for introduction commuter Trains
  • Studies for strengthen/reconstruction of existing Bridges.
  • Construction of missing links in the rail corridor between Bangladesh India border

Transportation sector business is a profitable business. Ever since independence this sector has been dominated by private owners.

 

Power and Energy Sector

Bangladesh has experienced rapidly rising energy consumption over the past two decades. This trend will intensify further in the coming years as economic growth and development efforts accelerate—Bangladesh strives to become a middle-income country by 2021.

Electricity is the major source of power for most of the country's economic activities. Noncommercial energy sources, such as wood fuel, animal waste, and crop residues, are estimated to account for over half of the country's energy consumption. Bangladesh has small reserves of oil and coal, but very large natural gas resources. Commercial energy consumption is mostly natural gas (around 66%), followed by oil, hydropower and coal.

Planned and appropriate use of electricity is fundamental to the economic progress of Bangladesh. There is a huge demand for electricity for all sectors of the economy including agriculture, industry and service sectors. Other than household use of electricity in rural areas, the scale of demand for electricity in agricultural, SMEs and income generating activities is going up.

 

Textile Industry

From spinning to weaving, from knitwear to leisurewear and high street fashions, the textiles and clothing industry is Bangladesh’s biggest export earner. This rapidly growing sector of the Bangladeshi economy offers a unique competitive edge that supports profitable expansion into new strategic markets.

As global demand for cheap clothing rises rapidly, Bangladesh’s position as the second biggest exporter in the world continues to hold strong, which is mainly due to its large population and low labour costs. Bangladeshi manufacturers will be forced to enhance productivity levels in order to maintain their competitive advantage.

The phenomenal growth in the readymade garment (RMG) sector in the last decade created many new factories and employment opportunities. Yet, even with these challenges ahead, as global trade picks up in the coming years, demand for Bangladeshi garments is also expected to increase, thereby prompting much-needed economic growth for the developing state. Enormous investment opportunities exist in this sector. In the RMG industry demand for fabric significantly exceeds local supply and so is currently being met by imports.

The importance of the textile industry in the economy of Bangladesh is very high. The growing trend in the textile and the RMG sector means that Bangladesh is favorably positioned to appeal to foreign investors.

Sector highlights:

  • Low-cost and high-quality products that are produced on time, reliably and very competitively with a skilled work force;
  • A unique regional location for expansion into key Asian and other markets;
  • Privileged trading status with Canada, the EU and Japan;
  • Clusters of companies providing a local supplier base with depth in skilled labour, training, and technical development facilities.

There may be investment opportunities in:

  • Carding Cloth
  • Silk Reeling Unit
  • Jeans, Cotton Casuals & Shirts
  • Implantable Surgical Suture (Biomedical Textile)
  • Acrylic Blanket for Warming Human Coverage Purpose
  • Viscous Rayon
  • Readymade Garments (T-Shirt)
  • Sanitary Napkins
  • Jeans Manufacturing Unit

 

Jute Sector

Jute is a vital sector from economical, agricultural, industrial, and commercial point of view in Bangladesh. Once upon a time jute was called the ‘Golden Fibre’ of Bangladesh. It is one of the cheapest and the strongest of all natural fibers and considered as fibre of the future. Jute is second only to cotton in world's production of textile fibers. The jute trade is centered mainly on Bangladesh and the Indian State of West Bengal. The major producing country of jute is Bangladesh, due to its natural fertile soil. Being a major player in the long history of jute trade and having finest natural fiber, Bangladesh has always had an advantage in raw jute trading. Bangladesh is still the largest producer and exporter of raw jute in the world. After the emergence of Bangladesh as an independent state the contribution of the industry to the nation's GDP and in the field of employment declined (in absolute and relative terms). But Still the jute industry must be said to be playing an important role in the national economy: it provides direct employment to about 150 lakh people even after the closure of 40 per cent of its production capacity, pays over Tk 100.00 crores for insurance and similar amount as cost of internal transport of raw jute, earns about Tk 150.00 crores worth of foreign unchanged and consumes 30 lakhs of raw jute, thereby benefiting millions of jute cultivators.

There may be investment opportunities in:

  • Jute Garments
  • Coir Pith
  • Jute Twine (Jute Rope) & Gunny Bag from Raw Jute
  • Jute Yarn, Jute Sutli & Hessian Cloth Weaving Integrated Unit
  • Jute Shopping Bags
  • Jute Ropes/Sutli
  • Jute Mill (With Spinning & Weaving)
  • Activated Carbon Powder from Jute Sticks


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• This report helps you understand the viability of the project by disclosing details like machinery required, project costs and snapshot of other project financials

• The report provides a glimpse of government regulations applicable on the industry

• The report provides forecasts of key parameters which helps to anticipate the industry performance and make sound business decisions.

 

Our Approach:

• Our research reports broadly cover Indian markets, present analysis, outlook and forecast for a period of five years.

• The market forecasts are developed on the basis of secondary research and are cross-validated through interactions with the industry players

• We use reliable sources of information and databases. And information from such sources is processed by us and included in the report

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Nuts & Bolts (Hot Dip Galvanized)

Nuts and Bolts are available in various sizes and shapes. The kind of the classification of bolts and nuts may broadly be those made by the cold and hot process plant.Nuts and Bolts are used by the existing industries, repair workshops etc.Hot Dip Galvanizing is a process in which an adherent, protective coating of zinc and zinc compounds is developed on the surfaces of iron and steel products by immersing them in a bath of molten zinc. Hot Dip Galvanized Fasteners is extensively used to join heavy-duty components together. India is expected to increase from 88.4 million tonnes (MT) in 2017 to 128.6 MT by 2021. The analysts forecast global industrial fasteners market to grow at a CAGR of 4.05% during the period 2016-2020. Worldwide demand for industrial fasteners is forecast to amount to US$93.8 billion. The revenue in North America will register US$20.05 billion, US$18.85 billion in Europe, US$40.75 billion in Asia Pacific and US$14.15 billion in other regions, respectively. Which facilitates the development of new technologies and ensure a high quality product. Few Indian major players are as under • A V R Fasteners Pvt. Ltd. • Adinath Forging Pvt. Ltd. • Agarwal Bolts Ltd. • Agarwal Fastners Pvt. Ltd. • Deepak Fasteners Ltd. • Dev Fasteners Ltd.
Plant capacity: Mild Steel Zinc Coated Bolts (DR M8-M18): 2310 MT/Annum Mild Steel Zinc Coated Nuts (DR M8-M30): 690 MT/AnnumPlant & machinery: Rs. 404 lakhs
Working capital: -T.C.I: Cost of Project: Rs. 897lakhs
Return: 28.00%Break even: 48.00%
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Exercise Note Book

Exercise books are widely known & vastly used as day-to-day products. Notebooks are available in the market in various sizes, shapes & pages and having various types of covers paper bound, board and Rexene bound etc. Writing pads, exercise notebooks and ring books are made from paper sheet layers which are commonly ruled, stitched or glued and used for writing. They are composed of pages, often ruled, made out of paper, used for purposes including recording notes or writing, drawing and similar activities. The demand for notebooks is projected to reach 2,250 tons and 3,155 tons by the year 2017 and 2022. India exercise notebook market is expected to reach Rs. 334.6 billion by FY’2020. India exercise notebook market, segmentation on the basis of Use, Number of Pages, GSM, Recycled/Non-Recycled Papers, Retail/Institutional Sales, Size, Bindings, Cover Types, City Tiers, Rural/Urban Demand and Paper Types. India stationery market revenues are projected to grow at a CAGR of 10.5% during 2018-24. Thus, due to demand it is best to invest in this project. Few Indian major players are as under • Apeejay Oxford Bookstores Pvt. Ltd. • Apollo Publishers Ltd. • Aptonline Ltd. • Archies Ltd. • C B S Publishers & Distributors Pvt. Ltd. • Crossword Bookstores Ltd.
Plant capacity: Exercise Note Books (17x27 cm.): 10000 Pcs./DayPlant & machinery: Rs. 48 lakhs
Working capital: -T.C.I: Cost of Project: Rs86 lakhs
Return: 27.00%Break even: 67.00%
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Ready Mix Concrete

Ready mix concrete is a modern trend of introduction in the Asian Countries. It is already introduced long before in the European Countries. It is new concept of use concrete in the construction area. Ready mix concrete has advantages in the area where immediate requirement of concrete mixture like in the preparation of bridge overhead roads on or the road construction. The good quality concrete is a homogeneous mixture of water, cement, aggregates and other admixtures. India is the second largest producer of cement in the world after China. It is followed by Japan and the USA. Cement consumption is very closely linked to the performance of the construction industry; the growth of RMC in India has in the past been predominantly driven by demand from the metro cities. According to an ICRA analysis, in cities like Mumbai it is mandatory to use RMC in construction of flyovers. The world market for Ready-Mix Concrete is projected to reach $105.2 billion. The RMC market in India is estimated to be worth USD 78.7 billion by 2024.As a whole any entrepreneur can venture in this project without risk and earn profit. Few Indian major players are as under • A C C Ltd. • Ahlcon Ready Mix Concrete Pvt. Ltd. • Ambit Concrete Pvt. Ltd. • Dirk Pozzocrete (M P) Pvt. Ltd. • Nutech Engineering Technologies Ltd. • Particle Dynamics Pvt. Ltd.
Plant capacity: Ready Mix Concrete (M20): 240 Cu.Mt./DayPlant & machinery: Rs 48 lakhs
Working capital: -T.C.I: Cost of Project: Rs. 229lakhs
Return: 27.00%Break even: 73.00%
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Red Oxide Primer From Mill Scale

Red oxide primer is a specially formulated coating used as a base coat for ferrous metals. Red-oxide primer serves a similar purpose to interior wall primers in that it prepares metal for a topcoat, but it also gives iron and steel surfaces a layer of protection. A primer is composed of Red Oxide, solvents, resins, and various additives. The pigments give the primer color; solvents make it easier to apply; resins help it dry; and additives serve as everything from fillers to anti fungicidal agents. Indian paint market will grow with a CAGR of around 14% during 2015-16 to 2019-20. The Indian paint industry has been growing at an average 15% per annum over the last decade. Growth has been consistent with the Indian GDP growth rate and in some years the industry has grown at a rate of 1.5 to 2 times higher than that of GDP growth. This facilitates the development of new technologies and ensures a high quality product. Few Indian major players are as under • Ashok Neel Mfrs. Pvt. Ltd. • Bajaj Superpack India Ltd. • Eskay Dye-Stuffs & Organic Chemicals Pvt. Ltd. • Futura Polyesters Ltd. • NirupSynchrome Ltd. • Omkar Industries Ltd.
Plant capacity: Red Oxide Primer (Each Packed in 20 Ltrs Container): 1000 Packs/Day Red Oxide Primer (Each Packed in 5 Ltrs Container): 4000 Packs/DayPlant & machinery: Rs. 412 lakhs
Working capital: -T.C.I: Cost of Project : Rs1247 lakhs
Return: 27.00%Break even: 59.00%
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IV Fluids (BFS Technology)

Intravenous fluids are fluids which are intended to be administered to a patient intravenously, directly through the circulatory system. These fluids must be sterile to protect patients from injury, and there are a number of different types available for use. Intravenous fluids can also be used as a route of medication administration. If a doctor wants to deliver a small amount of medication over an extended period of time, it can be dissolved in a bag of intravenous fluids and set on an infusion pump which delivers the medicated fluid directly into the blood. The Indian pharmaceutical industry is the fourth largest in the world in terms of volume of output and thirteenth in domestic demand. However, the Indian industry, valued at USD 17 bn in represented just over 1% of the global pharmaceutical industry (USD 1700 bn) in value terms. The domestic market is estimated at Rs 680 bn. Intravenous (IV) fluids market in India is around Rs. 3,000 crore growing at healthy rate of around 15-20 per cent a year due to its essential requirement in nature. Entrepreneurs who invest in this project will be successful. Few Indian major players are as under • Abaris Healthcare Pvt. Ltd. • AhlconParenterals (India) Ltd. • AxaParenterals Ltd. • Infutec Healthcare Ltd. • Kokad Pharmaceutical Laboratories Ltd. • Parenteral Surgicals Ltd.
Plant capacity: IV Fluids (500 ml Bottle): 49600 Pcs./DayPlant & machinery: Rs. 1954 lakhs
Working capital: -T.C.I: Cost of Project: Rs. 2756 lakhs
Return: 25.00%Break even: 52.00%
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LPG Bottling Plant

LPG cylinder filling plants vary considerably in size, complexity and layout. The type and size depends on such factors as maximum potential throughput requirements, size and type of cylinder filled and the number/grades of products handled. Liquified Petroleum Gas (LPG), popularly known as cooking gas, is a mixture of hydrocarbons which are gaseous at normal temperature, but can be liquified at moderate pressure, and can be stored in cylinders as a liquid under pressure, and is drawn out and used as gas. The average growth rate in demand has settled down to around 10% from a high of 18% during early 1990s. Apart from commercial and industrial establishments, 94 mn households use LPG. Projections from all three scenarios reveal that demand for LPG will reach a minimum of 5.9 million metric tons by the year 2022.Thus, due to demand it is best to invest in this project. Few Indian major players are as under • AdaniDhamra L P G Terminal Pvt. Ltd. • Aegis Gas (Lpg) Pvt. Ltd. • Aegis Logistics Ltd. • Alert Petrogas Ltd. • Asia Lpg Pvt. Ltd. • Balaji Pressure Vessels Pvt. Ltd.
Plant capacity: LPG Cylinders (5 Kgs Size): 1360 Cylinders/Day LPG Cylinders (14.2 Kgs Size): 1000Cylinders/Day LPG Cylinders (19 Kgs Size): 1000 Cylinders/DayPlant & machinery: Rs. 113 lakhs
Working capital: -T.C.I: Cost of Project Rs. 984lakhs
Return: 27.00%Break even: 35.00%
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Cashew Nut Processing Unit

The cashew nut is a popular dessert nut, eaten out of hand, with other mixed nuts and used in baking and confections. Sixty percent of cashews are consumed as salted nuts. The cashew apple is generally processed and consumed locally. The raw cashew nut is the main commercial product of the cashew tree, though yields of the cashew apple are eight to ten times the weight of the raw nuts. ? India is the third largest consumer of cashew nuts in the world & India stands first in Cashew Nut Processing. India processes around 1.59 million tons of cashew nuts every year though it produces only around half of the quantity that it processes. India’s cashew industry might have to increase domestic production to over 2 million tonnes by the year 2025, it is expected to achieve a target of 2.14 MT of raw cashew nut production in India, against the estimated demand of 2.19 MT by the year 2025. Which facilitates the development of new technologies and ensure a high quality product. Few Indian major players are as under • Ames Foods Processors India Pvt. Ltd. • Ashoka Estate Developers Pvt. Ltd. • Chandra Cashew Imports & Exports Pvt. Ltd. • Goa Forest Development Corpn. Ltd. • Kerala State Cashew Devp. Corpn. Ltd. • Padmavathi Cashews & Coffee Ltd.
Plant capacity: Cashew Nut Processing Unit: 20 MT/Day Plant & machinery: Rs. 155 lakhs
Working capital: -T.C.I: Cost of Project: Rs. 750 lakhs
Return: 31.00%Break even: 62.00%
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Disposable Plastic Syringes

Disposable Syringes are made of plastic material and are used in the field of medical and veterinary science. Due to their availability in sterilized condition, ready to use, and cost effectiveness, disposable syringes are fast replacing the age-old glass syringes. Disposable Syringes are being used by doctors to inject medicines through intravenous or intramuscular ways for the treatment of diseases & also by research & development personnel. The effective result of the above factors of influence on the market – along with a few others – for disposable syringes is expected to translate to a CAGR of 5.6% from 2015 to 2023.India is witnessing a rapid growth across all segments and categories of medical products. India exported US$ 35.22 million worth of syringes and the overall exported quantity was 719.48 million units. Thus, due to demand it is best to invest in this project. Few Indian major players are as under • Albert David Ltd. • Disposable Medi-Aids Ltd. • Hindustan Syringes & Medical Devices Ltd. • Lifeline Injects Ltd. • Lifelong Meditech Ltd. • Oyster Medisafe Pvt. Ltd.
Plant capacity: Disposable Plastic Syringes: 460 Boxes/DayPlant & machinery: Rs. 115 lakhs
Working capital: -T.C.I: Cost of Project: Rs. 289 lakhs
Return: 18.00%Break even: 67.00%
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Essential Oils Extraction and Manufacturing Industry

Essential Oils Extraction and Manufacturing Industry. Jasmine and Tuberose Oil Extraction Business. Essential Oils from Flower Crops An essential oil is a natural product extracted from a single plant species. Not all plants produce essential oils, and in the plants that do, the essential oil may be found in the roots, stems, leaves, flowers, or fruits. Essential oils, also called volatile odoriferous oil, are aromatic oily liquids extracted from different parts of plants, for example, leaves, peels, barks, flowers, buds, seeds, and so on. They can be extracted from plant materials by several methods, steam distillation, expression, and so on. Among all methods, for example, steam distillation method has been widely used, especially for commercial scale production. Essential oils have been widely used as food flavors. Essential oils have been known to possess antioxidant and antimicrobial activities, thereby serving as natural additives in foods and food products. Jasmine Essential Oil Jasmine essential oil, or technically Jasmine Absolute (Jasminum officinale) is a pricey and rarer oil to find. It has a sweet aroma (almost sickly sweet to some noses), very floral and stronger than the flowering plant itself. Jasmine oil is extracted from the flowers of Jasmine. Its scientific names are Jasminum Grandiflora (Royal Jasmine) and Jasminum Officinale (Common Jasmine). It is one of the most powerful, soothing, exotic and pleasant oils available. It is widely accepted for its ability to treat depressed people. This oil is also known to ease childbirth and has been used for many years now. Jasmine oil is also appreciated for its blending properties with other oils. Although expensive, this oil is preferred by many people around the world. The benefits and effects it has on the skin are innumerable. It is extremely effective in healing wound scars and stretch marks besides helping in treating dry skin. Tuberose Oil Tuberose oil is extracted from Polianthes tuberosa of the Agavaceae family and is also known as tuberosa and tubereuse. Polianthes tuberosa, is commonly known as Rajanigandha in India due to its night blooming fragrant flowers. It is small bulbous herb reaching upto height of 2-3 feets. It bears aromatic flowers and generally grown for oranmental purpose. The waxy, white and fragrant flowers on long spikes are mostly used as cut flowers for making garlands and extracting essential oil. There are also few medicinal uses of Polianthes tuberosa. Flowers are used in perfume industry and also diuretic and emetic activity. Bulbs are used as antigonorrhoea, diuretic, emetic and for curing rashes in infant. Market Outlook The essential oil is used across various industries such as agriculture, food and beverage industry, fragrance, cosmetics, pharmaceuticals, and retail. Its benefits range from good sleep, stress relief, pain relief, weight loss, body detoxification, mental alertness and stretch marks healing. Essential Oil Market is expected to reach $11.188 million by 2022, with a CAGR of 8.7% from 2016 to 2022. Essential oils, also known as volatile oils/aetherolea/ethereal oils, are derived from leaves, stems, flowers, bark, roots, or other parts of a plant. Essential oil is obtained from various herbs and plants, such as orange, eucalyptus, corn mint, peppermint, citronella, lemon, lime clover leaf, and spearmint, using distillation methods such as steam and water distillation. An essential oil contains volatile aroma compounds and real essence of the plant from which it is derived. Essential oils are primarily used in cosmetics & toiletries, food items and beverages. Rising consumer income across developing nations coupled with high demand for premium cuisine is expected to contribute to the segment growth. Orange, lemon, spearmint, anise, asafetida, basil, citronella, coriander, rosemary, and others are increasingly being used to extract oils and improve flavor in food & beverages instead of adding whole herbs and spices. Rising demand for attractive color and taste in local dishes is further fueling to market growth. On the basis of application, the essential oils market is led by the food & beverage application segment. Highly nutritive contents and numerous health benefits associated with the consumption of essential oils are the key factors driving the use of essential oils in food & beverage industry during the forecast period. Furthermore, an increase in demand for energy and health drinks is witnessed in the recent years, which have led to increased use of essential oils in beverages. Also, the number of recreational and lifestyle users has constantly increased in the recent years, which will increase the demand for essential oils in spa & relaxation and aromatherapy industries. The major factor boosting the market growth is the increasing consumer preference for natural and organic products be it cosmetics, food or similar other product categories. This in turn, has led the manufacturers operating in such industries to develop products that contain natural additives. Thus, the growing usage of essential oils among the aforementioned industries, coupled with factors which include increasing disposable income and improved standards of living in emerging economies, supplement the market growth. The factors restricting the market growth are high price of essential oils, availability of synthetic substitutes, and limited availability of raw materials. Government support and favorable regulations are likely to offer lucrative opportunities for market growth. Essential oils are volatile liquid substances extracted from aromatic plant material by different types of extraction methods. They have potent antioxidant and anti-microbial properties and can be used to treat depression and stress-related diseases. Different types of essential oils used in aromatherapy include tea tree oil, jasmine oil, rosemary oil, and lavender oil. These oils are used in massage therapies, acupuncture, and topical care. Changing lifestyles and their consequences, such as high stress and depression, along with increasing disposable incomes, result in an increase in demand for aromatherapy. The global essential oil market is observing a significant expansion in its size, thanks to the increasing usage of essential oil in aromatherapy. The augmenting demand for flavored food and beverages products among consumers is also boosting this market substantially. With the rising development of innovative beauty and personal care products, fueled by the increasing preference for natural products, the usage of essential oil for the creation of new fragrances is surging, leading to an expected upswing in this market over the next few years. Tags Essential Oil Extraction, How are Essential Oils Extracted? 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Plant capacity: -Plant & machinery: -
Working capital: -T.C.I: -
Return: 1.00%Break even: N/A
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Business Opportunities in Tourism and Hospitality Sector

Business Opportunities in Tourism and Hospitality Sector. Setting Up a 5 Star Hotel. Rising Opportunities in India's Hospitality Industry Hotels industry is one of the major sectors fueling the growth of hospitality sector at the global level. Booming travel and tourism industry is one of the major factors fueling the demand in the hotels industry The various types of hotels in the world are typically classified as 5 star, 4 star, 3 star, 2 star, and 1 Star, among others. India’s tourism sector is growing, bringing with it an increased demand for hotels that cater to holidaymakers. And hotel groups are seizing the opportunity, expanding across some of the country’s biggest cities. The Indian tourism and hospitality industry has emerged as one of the key drivers of growth among the services sector in India. Tourism in India has significant potential considering the rich cultural and historical heritage, variety in ecology, terrains and places of natural beauty spread across the country. Tourism is also a potentially large employment generator besides being a significant source of foreign exchange for the country. Market Size India is the most digitally-advanced traveller nation in terms of digital tools being used for planning, booking and experiencing a journey, India’s rising middle class and increasing disposable incomes has continued to support the growth of domestic and outbound tourism. The travel & tourism sector in India accounted for 8 per cent of the total employment opportunities generated in the country in 2017, providing employment to around 41.6 million people during the same year. The number is expected to rise by 2 per cent annum to 52.3 million jobs by 2028. The Indian hospitality industry has emerged as one of the key industries driving the growth of the services sector and, thereby, the Indian economy. The tourism & hospitality sector’s direct contribution to GDP in 2016 was US$ 47 billion. Also, tourism in India accounts for 7.5% of the GDP & is the 3rd largest foreign exchange earner for the country. 3 Star hotels held the largest market share in the hotels market globally and is expected to remain the market leader throughout the forecast period. However, the unrated segment is expected to be the fastest growing market. Increasing demand in the budget hotels segment is one of the major factors fueling the demand in the unrated segment. Apart from this, 5 Star segment is also having huge growth potential in the hotels market. Increasing number of business travelers and demand for luxurious lifestyle are the major factors boosting the demand in this segment. North America is the largest as well as the fastest growing market for hotels globally. The U.S. held the largest market share in North America hotels market. The U.S. has largest number of budget hotels globally. Moreover, booming travel and tourism industry is also expected to have positive impact on the hotels market. In addition, the major players offering segmented offerings is also driving the hotels market in the U.S. India, China, Singapore and South Korea among others are some of the major markets for hotels in Asia Pacific. Singapore with increasing number of business travelers is the fastest growing market in the Asia Pacific region. The 4 Star segment held the largest market share in Singapore hotels market. In addition, Brazil, Saudi Arabia and UAE are some of the major markets fueling the demand for hotels in rest of the world. Hotel business in India is a lucrative business option, as in India tourists inflows are increasing day by day due to the prime attractions here and diverse culture. Hence, hotel business can be one of the profitable businesses to start. Hospitality Industry Hospitality is the world’s largest service industry, employing millions of people working in hotels, restaurants, cruise lines, resorts, private clubs, casinos, and bed-and-breakfasts throughout the world. The hospitality industry covers a wide range of organizations offering food service and accommodation. The industry is divided into sectors according to the skill-sets required for the work involved. Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information. There is a huge tourism potential in the country and as a result hospitality industry will continue to grow at a substantially higher rate. India is projected to be the fastest-growing nation in the wellness tourism sector in the next five years and infrastructure development is an inevitable factor in order to support this growth. The Indian hospitality industry has experienced prominent growth in recent years due to various factors, including the rising purchasing power of domestic travellers, an increase in commercial development and foreign tourist arrivals, a growing airline industry and government-led initiatives aiming to stimulate the sector. There is a great deal of scope to expand tourism across India, and as the country improves air travel connections and relaxes visa restrictions, tourist arrivals should increase. The growth in the hospitality sector and its contributions to the GDP will continue to be substantially higher than other sectors of the economy on the back of huge tourism potential in the country. Hospitality industry in India has generated tremendous employment opportunities and is a big source of foreign exchange for India. As per the planning commission the hospitality sector is responsible for more jobs per million rupee of investment than any other sector. This sector provided varieties of jobs which satisfies unskilled people to specialized one. The Future of Hospitality The Indian economy is opening up its horizons as it continues to integrate with the world economy. Therefore, the advantages of conducting business with and in India are many. This has led to the manoeuvring of variety of jobs to the shores of India, bringing in its wake transit travellers, business travellers, business meets and holiday seekers. India is the ninth largest civil aviation market in the world in 2014. The sector is projected to be the third largest aviation market globally by 2020. India’s aviation market caters to 117 million domestic and 43 million international passengers in 2014. Over the next decade the market could reach 337 million domestic and 84 million international passengers. Tags How to Start Your Own Hotel, Hospitality Sector Projects, How to Start a Hotel, How do I Start a Hotel Business? How to Start Hotel Business in India, 5 Star Hotel, Good Opportunities in India for Entrepreneurs, Want to Start Hospitality Industry in India? Start Hotel, Start a Tourism Business, How to Start Your own Hotel Business?, Setting Up a Hotel, Cost of Starting Hotel in India, Indian Hotels Industry, Tourism and Hospitality Sector Projects, Free Sample Hotel Business Plan, Hotel Business Plan, Hospitality Industry, Hospitality Business, Starting Your Own Business in Hospitality Sector, New project profile on 5 Start Hotel, Project Report on 5 Start Hotel, Detailed Project Report on 5 Start Hotel, Project Report on Tourism and Hospitality Sector, Pre-Investment Feasibility Study on Hotels & Hospitality Industry, Techno-Economic feasibility study on Tourism and Hospitality Sector, Feasibility report on 5 Start Hotel, Free Project Profile on Hotels & Hospitality Industry, Project profile on Hotels & Hospitality Industry, Five Star Hotel Business, Hospitality Projects, Hotel and Hospitality Projects, How to Start Hospitality Business, Start Your own Business as a Hospitality Industry, Starting Hospitality Business, Start Up Hospitality Business, Tourism and Hospitality Business Ideas to Start, How to Start Hospitality Business in India, Business Ideas in Hospitality Industry, Hospitality Industry in India, How to Start a Business in Hospitality Industry, Hospitality Business Ideas, Hospitality Startup Ideas, Opportunities in Tourism and Hospitality Sector, Hotels & Hospitality Industry in India, Investment in Hotel Industry, Hotel Industry and Hospitality Business, Hotel project ideas, Projects on Small Scale Industries, Small scale industries projects ideas, Tourism and Hospitality Sector Based Small Scale Industries Projects, Project profile on small scale industries, How to Start Hotel Industry in India, How to Start a 5 Start Hotel, 5 Star Hotel Business Plan, How to Start a Hotel Business or Hotel Startup in India
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