- The epidemic reduced the turnover of most companies by an average of more than 25 percent
About 75-80 per cent of Gujarat’s companies are facing a financial crisis due to the epidemic. During the festivals, corporate companies regularly give boxes of gifts and sweets to employees as well as businessmen directly or indirectly associated with the company on the occasion of Diwali. This year, 60 per cent of corporates will stay away from Diwali gift-sweets to save costs. More than 25 per cent of corporates say the focus is on maintaining employment by saving not only on Diwali but also on other side expenses. Gujarati companies around the world are leading the way in giving Diwali gifts to employees and families. The Gujarati company is making a loss, but during the Diwali festival, if not the flower, then the flower petal is also given as a sweet-gift.
IT, pharma, real estate, FMCG, retail, textile-garment, banking, electronics appliances and gems-jewellery industries have seen an average decline of 20-50 per cent in orders from corporates this year. The Corona effect is still being seen in most companies. The average turnover for each sector has been reduced by 10-50 per cent this year, not to mention the fact that most companies have cut jobs in addition to cutting their salaries.
Gifts will be avoided due to the impact on the turnover of the companies and loss of profits. Most of the companies have made pay cuts that will save on gift expenses and will also focus on raising salaries again next year.
Sweet-Salt Mart: Sweet and salty orders will be affected by up to 30%
Honourable Ajit Patel of Jayhind Sweets said that due to the Koro epidemic and economic crisis, this year will see a 25-30 per cent decline in the currency of Diwali sweets. Order booking of corporate companies has started with the highest demand for dry sweets ranging from Rs 500 to Rs 1,200 per kg. While in Namkin, gift boxes are being packed at Rs 200-800 per kg. There has been no increase in prices to boost trade.
Corporate Sector: 70% of companies will not give gifts to employees this year
Corporate adviser Bhavesh Upadhyay said the Diwali festival would be a crisis for most of the sectors facing an economic crisis. Attempts to maintain employment on the one hand and the burden of bonuses and gifts on the other. It is estimated that more than 70 per cent of companies in Gujarat will not receive gifts to their employees this year. IT, FMCG, retail industries and manufacturing companies are going through a crisis.
Real Estate: We will cut the budget but not hurt the hopes of the employees
Ashaben Desai, VP-Coldwell Banker Global Real Estate Consultant, said that the leading company in the international real estate sector says that even though it is a time of crisis, Diwali is full of hopes for the employees who are special to their families. So our company will cut the budget but will definitely celebrate Diwali by giving gifts and sweets. Even with a small budget, we have to come forward to revive the economy.
- More than 750 Gujarati companies with a turnover of over 100 crores
- Companies allocate budget in the form of Diwali gift-sweets of 0.50% of total turnover
- 60% of corporate companies will stay away from gifts to reduce administration costs
- 20% of companies will only give boxes of dryfoot as a gift
- 15% top companies will give 10-100 gram coins of silver in Diwali gift
There will be an effect according to the sector
Companies’ vote: Focus on saving jobs by saving gift-other expenses
The Corona epidemic has had a major impact as the turnover of most companies has dropped by 50 per cent. The Diwali festival has become a trouble for them at a time when many companies are running on oxygen. Top executives of the companies say that even though we have cut the gift budget on Diwali, the companies have tried to maintain employment by reducing other expenses which can be considered as the biggest gift for us.
Demand for chocolate boxes will drop by 30 per cent, with less impact from immunity chocolate
Suryakant Vishwakarma, founder of Zocolate Chocolate Caf એન્ડ & Bakery, said chocolate boxes for Diwali gifts are being preferred by corporates but demand has remained cold due to covid. However, we have provided immunity boosters, attractive packaging and masks and home delivery which has resulted in a 25-30 per cent drop in order bookings compared to last year.
Electronic Appliances: Order online from work retail from home
Honorary Bhavesh Parwani of K. Mahendra Enterprise said that in electronics appliances, corporate companies give LED TVs, sound system, irons etc. as gifts in normal years but this year the footfall is less due to covid. More than 40 per cent of orders have been cut due to the fragile financial condition of the companies. Preferring to order online because of the work from home culture.
Article Industries: 40-50% weak demand for gold-silver coins
Alpesh Soni, the director, Suvarna Shilpi, said demand has been declining due to high gold-silver prices and the Koro epidemic. Demand from corporate companies has declined. However, 1 to 5 gram coins in gold and 10 to 100-gram coins in silver are getting orders. The trend has also been cold in the jewellery segment. In addition, silver gift articles are getting a cold response this year.