What do I think of Indian film Industry?

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Recently I read an article in Sunday Business Standards on the front page it said: “Akshay Kumar stays in the 100 crore club”.

So, out of curiosity, I went out to explore the Indian film industry.

I am glad I did that. Because I found some really interesting facts.

First of all, you should know that I am one of the rarest person ever on the Indian subcontinent that hasn’t watched more than 5 Bollywood movies throughout his life.

I don’t watch Bollywood movies! I don’t know why. It’s not that I don’t like Bollywood movies, it’s just that I like Hollywood Sci-Fi movies more. Not to mention their awesome TV shows like Two and a half men or The Big Bang theory.

But as an Investor, I would like to benefit from the Grand success of all those Bollywood movies.

So, I looked up the top production (and distribution) houses in India and came to know the following:

  • Yash Raj Films is the top production house in the country founded by late Yash Chopra. His sons Aditya Chopra and Uday Chopra are currently running it.
  • Dharma production is the second largest production house in our country. Karan johar’s father Yash johar founded it. They have made a lot of successful films like Kabhi Khushi Kabhi Gham, student of the year, Humpty Sharma ki dulhaniya, 2 states, shandaar etc.
  • Yash Johar married Yash Chopra’s sister. So, the founders of the top two production houses in India are family members. Karan johar and Aditya Chopra are first cousins.
  • There are nearly 30-40 or more production companies in India. Red chilies production company founded by Shahrukh khan, Aamir Khan production company, UTV motion picture, Rajshree productions and a lot more.
  • Rajshree production makes family compatible movies like Hum aapke hai Kaun, Hum Saath Saath hai, prem ratan dhan paayo, Vivah etc.
  • Ekta Kapoor’s Balaji Telefilms makes Anti-family compatible movies like The Dirty picture, Kya kool hai hum, Kya super kool hai hum, kya super duper kool hai hum. You are best to watch them alone (and probably when you are drunk)
  • Out of all the production houses, I was able to explore today, only Ekta Kapoor’s Balaji Telefilms and Eros International are publicly listed. (Sighs).
  • It is so bad that the top production companies like YRF and dharma are not listed. I wish they were listed so that I could make money out of all those cheesy, high earning, successful movies they make every year.
  • I have noticed one thing that in any highly successful and big budgeted Bollywood film. There are a number of production companies involved altogether, simultaneously producing a film. Maybe that is the reason why they don’t want to go public.
  • All the major production houses also make TV serials and ad films. Ekta Kapoor makes a lot of TV serials.

In conclusion, I am extremely satisfied by my little research of the most prolific film industries in the world. Wikipedia says it makes around 1600 movies annually. I hope some of the major production companies gets listed soon. I am definitely investing in the IPO if that happens (after researching the company of course)

But until then I have to quench my thirst with the ‘Balaji telefilms’ I guess. This stock has taken a nice beating in the last couple of years.

I could also invest in the theater businesses. PVR and INOX are listed in the country’s bourses. Movie Tickets are their primary source of revenue before advertising and food & drinks sales.

 

Thank you so much for reading. I hope you like my little article on something I don’t know much about. Please comment if you liked it and share your thoughts below.

2 comments

  1. i agree, but it seems risky to invest in movies production…. coz you never know if a movie gets flopped, you are at risk of losing it all : i’ve seen some of the best ones flop….. television daily soaps are always hit, because of ‘dedicated tv drama lovers’ – that could be the one you can really invest in, especially balaji…..

    nice blog by the way….
    😊

    1. Hi Padmini!

      I agree that it is uncertain which movies will become hit and which one will be flop. But sticking with great directors like Karan Johar of dharma productions or Aditya Chopra from YashRaj Films gives you a good probability that the movie will be a hit.

      Our regular “Saas-Bahu” soaps doesn’t need that kind of diligence though. You just make it and people will watch 😉

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