Debutant producers most vulnerable in the Telugu film industry

The Telugu film industry, which attained international fame with the Baahubali franchise, is “the most disorganised sector” when it comes to financial matters, insiders say.

Though corporate and international production houses have entered the Telugu film industry (TFI), movies are still largely produced with funding from private financiers. The industry produces the highest number of films after Bollywood, and some of these movies have phenomenally high budgets.

Due to the pandemic, about 85 movies were stalled in the last six months, according to K L Damodar Prasad, honorary secretary, Telugu Film Chamber of Commerce. Following a representation of the industry leaders including top actors such as Chiranjeevi, Nagarjuna and directors like S S Rajamouli in June, the Andhra Pradesh and Telangana governments had accorded permission for cinema shooting to resume.

READ: Lights, Camera, Finance: Money woes mar film industry reopening

However, not many films went on the sets again because of fear of contracting the virus; movies like Nani’s ‘V’, which had completed shooting, were released on the OTT platforms.

Institutional banking is unheard of in the TFI and banks don’t invest in an enterprise fraught with flops and production delays. “Most producers are dependent on financiers. The amount and interest depend on the desperation of the producer. There are no standards at all,” Prasad, a third-generation filmmaker, says.

In an industry fuelled by glitz and fan mania, first-timers and small filmmakers often end up with huge debts when their films fail. “About 95 per cent jump into filmmaking for the passion, with no knowledge of the market risks,” says Prasad.

Now, individual producers are negotiating with financiers to waive off interest. “Producers who brought money with interest rates as high as 24 per cent are pleading with financiers to share the burden,” a prominent producer says.