The Hindu Business Line : Evolution of financing in Bollywood

Hyderabad, Oct. 3 From passion-driven financing to funding by the “parallel economy” (mafia money), the aspect of financing in Hindi film industry has seen a sea change in the last 110 years.

Giving a bird’s eye view of evolution of financing in the industry to the students of Indian School of Business (ISB) recently, Ms Kalpana Lajmi, a well-acclaimed Hindi film-maker, related how the art of film making has witnessed transformation through the years.

“Up to the 60s, the emphasis of film-makers like Raj Kapoor, Bimal Roy and Guru Dutt, was not on business and revenue returns. Passion for making films and patriotism had driven them,” she said.

Who invested in films then? “The film-makers themselves. They meet people, convince them and entice them to sell their properties to invest,” Ms Kalpana said.

Ms Kalpana, a theatre personality and niece of legendary film-maker Guru Dutt, directed films such as Ek Pal, Rudali and Darmiyan, which bagged a number of awards.

The film industry flourished till the 70s and till such time when money from the construction spoils started trickling in. “The quality of finance will have its mark on quality of cinema it funds. What really sells is important. Commerce took over and aesthetics took the back seat,” she pointed out.

To drive home the message, Ms Kalpana narrated how difficult it was for Satyajit Ray to complete the last few minutes of his film Pather Panchali (Song of the Little Road). The then West Bengal Chief Minister offered him funds from Roads and Buildings, taking the excuse that it was about roads.

The trend in the industry, then, was followed by the money from ‘parallel economy’. Independent cinema could not take place as film business narrowed down to a few production houses. Blockbuster movies thrived.

The industry status, which came only recently, did little as the uncertainty in the making of films became a big hurdle in attracting finance from banks.

The satellite television, however, gave a big boost to the industry, with the ‘hungry giant’ (TV) craving for film content. It could bail out the film-makers, she felt. “The business should encourage all kinds of cinema,” she pointed out.

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