Eye-Opening Revelation: Rana Daggubati Exposes s Rs 400 Cr Bank Borrowing at 24% Interest - Unjustifiable Financial Calculation!
- Posted on June 2, 2023
- Enterntainment
- By Navya Shrivastava
- 309 Views
The blockbuster Baahubali, starring Rana Daggubati
and Prabhas, revolutionized the Indian entertainment industry and etched its
place as a monumental film for years to come. However, behind the scenes, the
makers grappled with immense financial pressure, undertaking the colossal task
of bringing this grand vision to life. Rana has now shed light on the
staggering amount borrowed to release the Baahubali films. Given the absence of
a studio model in the Telugu industry during that period, the film's mammoth
budget of hundreds of crores had to be sourced from banks, subjecting the
production to exorbitant interest rates.
During a discussion about investments in the Telugu film industry, Rana Daggubati shed light on the financial aspects involved. He emphasized that just a few years ago, filmmakers heavily relied on personal assets such as houses or properties, which were pledged to banks as collateral, generating funds through high-interest loans. Interest rates ranging from 24 to 28 percent were commonly paid by the industry. Rana specifically highlighted the substantial borrowing of Rs 300-400 crore for a film of Baahubali's magnitude, incurred at such exorbitant interest rates.
In an interview with India Today, Rana Daggubati
revealed that during the release of the first part of Baahubali, the makers had
undertaken a daunting financial journey. They borrowed over Rs 180 crore at a
staggering 24 percent interest rate over a span of five and a half years. Rana
highlighted the immense struggle they faced, as their expenses surpassed even
the highest-grossing Telugu film at that time.
The financial calculations seemed unjustifiable,
leaving them uncertain about the outcome. To add to the pressure, they had also
begun filming portions of Baahubali 2. The success of the film was crucial, as
the consequences of failure were unknown.
When questioned about the existence of nepotism in the film industry, including the Telugu film industry, Rana Daggubati expressed his perspective on the matter. He pointed out that historically, there hasn't been a structured organizational process within the entertainment world. Instead, independent producers and talented individuals have been responsible for building organizations primarily within their own circles. Rana emphasized that the present is an opportune time to establish a more cohesive industry, considering the notion of India as a unified entity.
When asked about whether individuals from film
families and those without connections are offered an equal playing field, Rana
Daggubati acknowledged that film families do enjoy certain advantages due to
their strong network and connections. He observed that while not everyone from
film families may possess exceptional acting skills, they often excel in other
aspects, such as being excellent agents or facilitators. This advantage stems
from the familiarity and relationships established within the industry, similar
to other professional domains where personal connections matter.
Rana further discussed how in families with a
long-standing presence in the movie industry, there is an inherent expectation
for the next generation to carry forward the legacy. He emphasized the
responsibility that falls upon the successors, considering the hard work and
dedication invested by their ancestors in building something substantial.
Failing to live up to those expectations can lead to being labeled as someone
who isn't fulfilling their familial obligations. Rana illustrated this point by
highlighting the common perception that if a son doesn't surpass the
achievements of his father, he is deemed as inadequate, a phenomenon that
occurs frequently in various domains, not just the film industry.
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