Event management companies face sudden financial crisis because of Zero income amid Coronavirus pandemic. Many of them have now been temporarily closed.
Rs.3000 crore worth events were canceled and postponed in the end of March according to a report. From big events like Indian Premier League to small events like birthday parties, every event is affected because of the pandemic. The industry was growing at 16 percent Compound Annual Growth Rate. This growth was more than the media and entertainment industry, but now has a sudden decline.
The Owner of ‘Chintu party and events,’ Mr. Anish said, “There was no alternative, we were surviving on our hard earned savings . The volume of the events has drastically dropped to 80 percent, 10 percent additional drop in the revenue.”
The pandemic has directly affected 16.67 percent of the total affected employees in this sector as per a Business Standard report. Nearly One crore employees were affected directly, whereas five crore employees have been affected indirectly which includes artists like dancers, models, singers and other helpers. A few of them have ended up doing delivery jobs. A freelance DJ from Bangalore, Sanket Patil says he had no job during the pandemic.
Although the event management industry has gone through loss, eventually it needs to revive to get back to its previous position in the market. Mohanram, the CEO of ‘M M Activ’ and a market analysis expert says “It is important for the event organizations to introduce their services virtually. They need to come out of their comfort zone , and look for other domains.”
The event management companies are still looking for a hope to grab opportunities. But the customers are not willing to have event organizers. Naga Nikhil Krishnagiri , a customer who was looking for an event management company to organize his sister’s engagement, now says “ My sister’s engagement event had just 50 guest limits so I did not opt for an event management company to do the arrangements. Handling 50 guests was easier which was done by family members.”