New Delhi, Nov 2 (UNI) With Diwali round the corner, corporates are expected to give gifts worth Rs 2,000 crores to their business contacts, up from Rs 1,350 crore in last year.
A study by industry body Assocham, projects an increase of 48 per cent in the gift size during the forthcoming festive season given the encouraging first and second quarter results.
''Sectors which would take lead and have budgeted their expenditure for Diwali gifts distribution well in advance include pharmaceutical, IT, BPO, FMCG, real estate, tourism and aviation, retail etc,'' said Assocham Secretary General D S Rawat.
According to estimates, pharmaceuticals, real estate, FMCG and civil aviation are likely to distribute gifts worth Rs 160 crore as these sectors have witnessed a double digit growth.
The most sought after gift items likely to be part of Diwali gifts by most of corporate include silver and gold coins, wrist watches, briefcase, brassware and silver ware, candle stands, suit lengths, handy electronics items like iPods, DVD players, carpet etc.
According to the industry body, the only reason why corporates spend so much on Diwali is because apart from building the corporate image of the company, both internally and externally, it helps to strengthen goodwill of the company and foster long-lasting cordial relations with both employees and associates.
A rise in the culture of corporate gifting and increase in the cost of gifts can be attributed to tough competition in the market today, according to Assocham.
Inlay work in marble on watches, table tops and vases seem to have emerged as a favourite as also have 'Divinity' items ranging from Rs 350 to as high as Rs 20,000. Personalised gifts are also in demand with names of the recipient embossed on everything from expensive pens to diaries and wallets.