Dim Diwali

Usually, he says, the orders peaked at Rs 1 crore for corporate gift items over the past three or four years. It has barely touched Rs 40 lakh this year, Bansal says.

8220;This is unprecedented,8221; he says, 8220;we have no one to blame, though.8221;

At least 30 companies that placed orders with Chemzone India, which customises gift items from local manufacturers scattered in Faridabad and Ghaziabad, did not come shopping this year, Bansal says. About 20 clients cancelled part of their orders, and those who did place orders for corporate gifts opted for cheaper options such as leather wallets, mobile accessories and key chains that cost up to Rs 200, he says.

Brass products were also in demand as these came for less than Rs 800, another gift manufacturer says. There was also a huge demand for steel gift items and home utilities as these were innovative and a relatively newer concept, the manufacturer says.

For local manufactures, this Diwali season has been a nightmare. While retailers have been cautious and only bought what has been ordered in advance, for manufacturers who have stocked their inventory in anticipation, the losses are substantial.

Subhash Sabharwal of Creative Candles, a company that makes candles and chocolate gift hampers, says business this season is down 25 per cent compared to last year. The shelf life of candles isn8217;t long and they won8217;t last till the next year, he says.

8220;Diwali is not the same this year,8221; Sabharwal said. 8220;This is the biggest slump I have seen in eight years. Hamara toh lakhon ka nuksaan hai.8221;

Cutting losses not easy
Many importers, too, are stuck with gift items from China that are not selling. There is just no demand, says Sabharwal. While 8216;gift gurus8217; say a cheap gift on the occasion must be avoided as employees look forward to these, for companies struggling with the slowdown, cost-cutting is one way to stay afloat. Mukul Anand name changed on request, who works for a reputed communications firm, says he was expecting designer diyas instead of the box of sweet that he got from his office as Diwali gift. 8220;The ladoos are bad,8221; he says.
But business isn8217;t that bad for some manufacturers. Naveen Patel, whose company manufactures and supplies silver coins and such gift items, is not complaining. Since silver prices took a beating 8212; current prices are about Rs 16,500 per kg 8212; there is a surge in demand for 10-gram silver coins that cost Rs 200 each. The last word? 8220;It8217;s actually better than last year.8221;