Here is what happens when a film grosses Rs 200 Cr!

Dil Raju has remarked that nobody knows how much a producer makes when his film grosses, say, Rs 200 Cr. In his latest interview, the supremo of Sri Venkateswara Creations revealed the math:

About 18% of the collections would go to the government as GST.  This is Rs 36  Cr. Nobody talks about this. 

About 25% goes into paying rentals and other expenses. In the Telugu States, the rental system are in vogue. Rs 50 Cr goes into meeting these obligations. 

About 20% goes to the distributor towards NRA payment. 

The remaining amount is Rs 85 Cr. 

Then there is the burden of income tax as well. 

Dil Raju also commented that ‘Baahubali: The Beginning’ put its producers in the negative zone. “They made profits with the second part though. With that experience, the producer made ‘KGF: Part 1’ carefully and made profits from it. The second part was an even bigger hit,” Dil Raju revealed. 

Raju said that the distribution system has not been profitable because distributors buy big-ticket films without getting to watch the movie beforehand. “They shell out large sums when big combinations (of hero and director) are announced,” Raju said.

He also added that even producers’ profit margins have narrowed drastically in recent years. “If a producer believes that he can make Rs 100 Cr from his movie, he is spending up to Rs 95 to 98 Cr on making the film, including the remunerations,” Raju said.