44822124 bollywood economy
TRANSCRIPT
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Bollywood Economy
ECONOMYCONOMY
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Group G5Anwar SadathJoshin Shaji C
Poulomi Das
Sachin C D
Sudeep Babu
SOP owner- Mr. Cris Abraham
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ContentBollywoodIndian economyEconomic aspects of BollywoodLeading players in the industry
Economic growth of the industry in the last 5yearsMovies that contributed to the growthComparison with other regional movie industriesImpact of Bollywood on other industries
Reason for the high rate of investment into theindustryImpact of recession on the industryBenefits to governmentConclusion
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BollywoodPopularly known as Hindi film industry. Based in Mumbai, Maharashtra.
Originated in 1913.
Term coined in 1970s, inspired byTollywood, the Bengali film industry.
Often used to refer to the whole Indian filmindustry.
Unlike Hollywood it does not have a physicalexistence.
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Entertainment industry inIndia
The ministry of information , broadcasting andmedia is managed by Ms Ambika Soni, MP.
Entertainment industry in India comprisestelevision industry, different film industries,theatre, music industry, etc.
An amount ofn103 crores has been allotted towards the development of the film industries by the government in Budget 2010-2011.
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Indian Economy
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Characteristics:
Mixed economy.
Both Govt. and private sector have
influence over the economy.Liberalized economy.
Labour intensive.
Low level of income and capital formation.
Low order of resource utilization.
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Considered as a low income country by World
Bank, with the Gross National Income of US$549.
Great inequality in the distribution of wealth:
the richest tenth of households hold 33% ofwealth, while the poorest tenth only hold 3%.
86% of the population lives under $2 per day;44% lives under $1 per day.
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Indias economic projections
Source: report from Federation of Indian Chamber of Commerce andIndustry, New Delhi dated September, 2010
2008 2009 2010
GDP
growth
7.30% 5.40% 7.60%
CPI growth 9.30% 5.50% 4.90%
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Economic aspects ofBollywood
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The Rs.130-billion ($2.85 billion) industry isone of the fast growing sectors in thecountry with expanding global reach.
Approximately 250 movies are producedeach year, ranging from budget of $2million to $50 million.
During the last decade, exports have grown
from Rs.100 million ($2.18 million) toRs.1.5 billion ($32.85 million).
The industry is expected to grow at the rate
of 19 percent and reach a turnover of overRs.260 billion ($5.7 billion) by 2011.
Provides em lo ment to more than 1,75,000
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In the year 2009 , 27% of the moneyinvested in the industry was from NRIsand it rose to 31% this year.
Recently, the Govt has diluted therestrictions regarding FDI into the mediaand entertainment, which allows theNRIs to pool in funds into Bollywood.
The industry makes an annual income ofmore than US$500 billion a yearapproximately.
The industry is growing at the rate of11.2% er ear.
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Leading Players in the
industry
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Yashraj filmsRed chillies productionEros internationalUTV Movies
Shree Ashtavinayak Cinevision Pvt. LtdSheemarooDharma productionsKaleidoscopePercept picturesBhandarkar productions
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Yashraj FilmsYash Chopra- MDAditya Chopra- CEO
Highest grosser in the entertainmentbusiness.
Collectively, 8 of the recent YRF productionshave grossed in excess of200 Million USDollars worldwide.
Produces almost 5 movies a year, budgetranging from
40 crores 90 crores.
Employs more than 35000 people ranging
from technicians to junior artist andflimstars.
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Red Chillies ProductionOwners Shah Rukh Khan and Gauri Khan.Recent collaboration with Dharma
productions.
Also into advertisement and television
industries.Produces 3 movies on an average per year,
ranging from 30 crores 75 crores.
Have earned a revenue of US$ 160 millionfrom USA, UK and UAE, in 2009-2010.
Employs nearly 19,000 people.
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Eros International
Owner - Komal Nahta
Have a strong hold on the overseas marketsof USA and UAE.
Produces 5 movies on an average each year,
10 crore 50 crore .
Have earned a revenue of US$ 135 millionfrom USA and UAE, in 2009-2010.
Employs nearly 14,000 people on temporarybasis.
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Eros International
Year
Class ofshares
Authorize-d capital
Issuedcapital
Paid upshares(no.)
Paid upface value
Paid upcapital
2009-2010
Equityshares
125.00 71.41 7,14,07,000
10.00 71.41
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UTV Movies
Chairman Naresh ChandraConcentrates on only small and medium
budget films, ranging from .2 5 crores 10crores .
Popular mostly in south- east Asia and UAE.Have earned a revenue of US$ 105 million
from overseas trade, in 2009-2010.
Employs nearly 9,000 people .
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Shree AshtavinayakCinevision Pvt. Ltd
Chairman & MD- Dhilin H. MehtaBoard of directors Ms.Seema D. Kar, Mr.
Amit A. Behl, Mr. Kiran B. Mistry.
Dont have a strong hold on the overseas
markets . Popular mostly in south- eastAsia.
Produces 5 movies on an average each year,
10 crores 45 crores.Have earned a revenue of US$ 95 million
from overseas trade, in 2009-2010.
Employs nearly 11,000 people on temporarybasis.
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Growth of the industry in thelast 5 years, 2005-2010
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Year No. of filmsproduced
FDI in%
Annualinvestmentin n
crore
Revenueearned in m
crore2006 284 11 960 1305
2007 249 17 840 1700
2008 273 20 875 1585
2009 241 27 985 23552010 235 31 1060 ---------
-Source report from Research institute of media planning and, management August 2010
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.
N
o
of
fil
m
s
p
ro
d
u
ce
d
Year
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%
FD
Ii
n
Years
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A
nn
u
ali
n
ves
tm
en
t
in
n
cr
or
e
Years
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Re
ve
n
u
e
ear
n
ed
in
a
cr
or
e
Years
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Fastest growing industry in India.
Contributes 29% to the growth of Indianeconomy.
Expected to be the largest contributors ofgrowth in India.
Industry is attracting more and more FDI.
Annual investment is increasing at a rapid
rate.
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Recent movies that added to
the revenue of the industry
Top five highest grossing
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Top five highest-grossingBollywood films in India
Rank Movie Year Studio(s) Net Gross
(accordingto BOI)
Net Gross
(accordingto IBOS)
1 3 Idiots 2009 Vinod Chopra ProductionsRs.2,02,57,00,000
Rs.1,89,38,74,7292 Dabangg 2010 Arbaaz
KhanProductions
Rs.
1,40,00,00,000
Rs.
1,42,48,31,0003 Ghajini 2008 Geetha ArtsRs.
1,14,67,00,000
Rs.1,17,48,22,7564 Raajneeti 2010 Prakash
JhaProductions/UTV Motion Pictures
Rs.
92,93,00,000
Rs.
94,89,66,316
5 Rab Ne Bana Di Jodi2008 Yash Raj FilmsRs.86,78,00,000
Rs.73,52,37,848
http://en.wikipedia.org/wiki/Vinod_Chopra_Productionshttp://en.wikipedia.org/wiki/Vinod_Chopra_Productionshttp://en.wikipedia.org/wiki/3_Idiotshttp://en.wikipedia.org/wiki/Vinod_Chopra_Productionshttp://en.wikipedia.org/wiki/Vinod_Chopra_Productionshttp://en.wikipedia.org/wiki/Vinod_Chopra_Productionshttp://en.wikipedia.org/wiki/Dabangghttp://en.wikipedia.org/wiki/Geetha_Artshttp://en.wikipedia.org/wiki/Geetha_Artshttp://en.wikipedia.org/wiki/Ghajini_(2008_film)http://en.wikipedia.org/wiki/Geetha_Artshttp://en.wikipedia.org/wiki/Geetha_Artshttp://en.wikipedia.org/wiki/Raajneetihttp://en.wikipedia.org/wiki/Yash_Raj_Filmshttp://en.wikipedia.org/wiki/UTV_Motion_Pictureshttp://en.wikipedia.org/wiki/Rab_Ne_Bana_Di_Jodihttp://en.wikipedia.org/wiki/Rab_Ne_Bana_Di_Jodihttp://en.wikipedia.org/wiki/Yash_Raj_Filmshttp://en.wikipedia.org/wiki/Yash_Raj_Filmshttp://en.wikipedia.org/wiki/Yash_Raj_Filmshttp://en.wikipedia.org/wiki/Rab_Ne_Bana_Di_Jodihttp://en.wikipedia.org/wiki/UTV_Motion_Pictureshttp://en.wikipedia.org/wiki/Raajneetihttp://en.wikipedia.org/wiki/Geetha_Artshttp://en.wikipedia.org/wiki/Ghajini_(2008_film)http://en.wikipedia.org/wiki/Dabangghttp://en.wikipedia.org/wiki/Vinod_Chopra_Productionshttp://en.wikipedia.org/wiki/3_Idiots -
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Comparison with otherregional
movie industries
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Other film industries in IndiaTollywood (Bengali)Tollywood (Telugu)Mollywood (Kerala)Lolywood (Lucknow)Ollywood (Orissa)
Kollywood (Tamil Nadu)Sandalwood (Karnataka)Bhojpuri film industryMarathi film industryPunjabi film industryGujrathi film industryAssamese film industry
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Tollywood
The Bengali film industry.
Approximately 160 movies are producedeach year, ranging from budget of $20,000
to $3,00,000.
Provides employment to more than 65,000people. Has employment generatingcapacity of nearly 1500 per year.
There has not been any contribution to the
industry through FDI.
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The industry makes an annual income ofmore than
US$60 million a year approximately.
The industry is growing at the rate of 7.2%per year.
Annual income of the industry adds to only4% of the growth of Indian economy.
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Mollywood
The Malayalam film industry.
Approximately 90 movies are produced eachyear, ranging from budget of $200,000 to$5,000,000.
Provides employment to more than 35,000people. Has employment generatingcapacity of nearly 1100 per year.
There has been contribution to the industry
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The industry makes an annualincome of more than US$110 million a year
approximately.
The industry is growing at the rate of 6.4%per year.
Annual income of the industry adds to only7% of the growth of Indian economy.
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Telugu film industry
Approximately 100 movies are
produced each year, ranging from budget of$70,000 to $9,00,000.
Provides employment to more than 30,000people. Has employment generatingcapacity of nearly 1000 per yearapproximately.
There has been 11% contribution to the
industry through FDI.
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The industry makes an annual income ofmore than
US$90 million a year approximately.
The industry is growing at the rate of 7.8%
per year.
Annual income of the industry adds to only3% of the growth of Indian economy.
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Bhojpuri film industry
Approximately 75 movies are produced each year, ranging from budget of $30,000 to
$2,00,000.
Provides employment to more than 32,000people. Has employment generating capacityof nearly 1700 per year approximately.
There has been no contribution to the industrythrough FDI.
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The industry makes an annual income of
more than US$15 million a year approximately.
The industry is growing at the rate of 4.7%per year.
Annual income of the industry adds to only2% of the growth of Indian economy.
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Ollywood
Approximately 60 movies are produced each year, ranging from budget of $60,000 to
$2,00,000.
Provides employment to more than 15,000people. Has employment generating capacity
of nearly 2000 per year approximately.
There has been no contribution to the industrythrough FDI.
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The industry makes an annual income ofmore than
US$9 million a year approximately.
The industry is growing at the rate of 5.2%
per year.
Annual income of the industry adds to only1.7% of the growth of Indian economy.
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Comparison with Bollywood
No. of filmsproduced Growth rateof theindustry in%
Annual FDIin % % ofincomeadded toIndianeconomy
(approx.)
Bollywood 250 11.2 31 9.2
Tollywood 160 7.2 No 4
Ollywood 60 4.7 No 2
Telugu film
industry
100 7.8 11 3
Bhojpuri 75 5.2 No 1.7
Mollywood 90 6.4 Yes 7
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Comparison with Bollywood
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Comparison with Bollywood
%
of
in
com
e
ad
de
d
to
In
d
ia
n
eco
n
om
y
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Impact of Bollywood on otherindustries
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Music industry
Almost 70% of the Indian music industrydepends on Bollywood.
Bollywood is responsible for pooling in almost75% of revenue earned annually.
The potential of the Indian music industry can
be better understood from its size estimatedat around US$ 182.9 million in 2010, up fromUS$ 160.9 million in 2008, portraying a growth
of 14 per cent during the reporting period. It isexpected to grow at a CAGR of 16 % over2010-14 to reach US$ 379.1 million.
Some of the leading music companies are T-
Series, HMV, Sa Re Ga Ma.
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Media and advertisement
The Indian Media and advertisement (M&A)
industry stood at US$ 12.9 billion in 2009registering a 1.4 per cent growth over lastyear.
According to a joint report by KPMG and anindustry chamber. Over the next five years,the industry is projected to grow at acompound annual growth rate (CAGR) of 13% to reach the size of US$ 24.04 billion by
2014.The report stated. Additionally, the M&Asegment is expected to be the fastestgrowing sector. The sector showed a 22%growth in 2009 and is expected to grow ata CAGR of 32 % to reach US$ 705.2 millionby 2014.
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Other Industries
Apparels industry
Disc producing
Prop industry
Tourism industry
Recreational industry
Television industry
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Less regulations in Foreign DirectInvestment.
Increased demand for the Bollywoodmovies in India as well as in abroad.
Awesome turnovers from the recentmovies.
Withdrawal of recession.
R e a so n fo r th e h ig h ra te o f
in v e stm e n t in to th e in d u stry
Eff t f i th
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Effect of recession on theindustry
The total revenue that Bollywood earnedin 2008 was R10,900 crore with anoverseas collection ofr977 crore.
The overseas box office also saw a major
drop of 30 % with a cut down in the filmgoing audience.
KPMG has estimated that the domesticbox office revenue in 2009 will bearound R7,880 crore as compared to m8.020 crore in 2008, thus bearing a lossof about a 100 crore
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Consumer preferences
Multiplex 36% of public like to see movies inmultiplexes, considering it to be a treat ofsophistication, as the services availed hereare higher and price is almost 5 times to thatof in theaters.
Theater 64% of public who prefer to seecopyrighted movies in theaters since the priceof tickets are comparatively less compared tomultiplexes.
Home viewing- DTH services & DVD, CDscopyright
Internet , Pirated CDs- 23% of the revenue of
Bollywood was being consumed by piracy in2008 and 26% in 2009.
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Government s benefits from
Bollywood
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Entertainment tax
One of the highest revenue earning sectorsfrom tax in entertainment industry iscinema.
The entertainment tax department collectsthe tax from the sponsors and deposit it tothe Government of India.
Entertainment tax in all states of India is
15%-20%, except Maharashtra and UP,where it is 25%-30%.
The government receives 37% of the totalentertainment tax from Bollywood.
Corporate tax from the
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Corporate tax from theproduction houses
Indian government receives a corporate tax
of 30% from the industry.
If the taxable income is more than 1 million,a surcharge of 10% of income tax is leviedon the company.
Contribution to GDP
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Contribution to GDP
The present GDP rate is 7.60% and wants toattain 9% by 2010.
The Bollywood industry added to 19% of the
total GDP of the country in 2009 and isexpected to contribute 22% of the GDP in2010.
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Other benefits
Public awareness
Development of tourism industry
Improvement of infrastructure
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Expectations this Diwali
More than n230 crore of the annual
investment of 2010 is at stake this Diwaliseason with upcoming movies like
Golmaal-3, Guzarish, Action Replay.
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CONCLUSION
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Reference
http://www.sebi.gov.in/dp/ashtadraft.pdfhttp://www.moneycontrol.com/financials/shreeashtahttp://www.bollywoodhungama.com/features/2008/http://filmistan.mywebdunia.com/2009/02/07/no_rehttp://business.mapsofindia.com/india-tax/corporathttp://www.economywatch.com/foreign-direct-inveshttp://www.zorsebol.com/movies/bollywood-movies/http://www.whereincity.com/movies/http://indiabudget.nic.in/ub2010-11/eb/sbe59.pdf
http://www.sebi.gov.in/dp/ashtadraft.pdfhttp://www.moneycontrol.com/financials/shreeashtavinayakcinevision/balance-sheet/SAC03http://www.bollywoodhungama.com/features/2008/11/14/4503/index.htmlhttp://filmistan.mywebdunia.com/2009/02/07/no_recession_in_bollywood.htmlhttp://business.mapsofindia.com/india-tax/corporate-rate.htmlhttp://www.economywatch.com/foreign-direct-investment/http://www.zorsebol.com/movies/bollywood-movies/bollywood-movies-of-2010-explore-whats-in-store/http://www.whereincity.com/movies/http://indiabudget.nic.in/ub2010-11/eb/sbe59.pdfhttp://indiabudget.nic.in/ub2010-11/eb/sbe59.pdfhttp://www.whereincity.com/movies/http://www.zorsebol.com/movies/bollywood-movies/bollywood-movies-of-2010-explore-whats-in-store/http://www.economywatch.com/foreign-direct-investment/http://business.mapsofindia.com/india-tax/corporate-rate.htmlhttp://filmistan.mywebdunia.com/2009/02/07/no_recession_in_bollywood.htmlhttp://www.bollywoodhungama.com/features/2008/11/14/4503/index.htmlhttp://www.moneycontrol.com/financials/shreeashtavinayakcinevision/balance-sheet/SAC03http://www.sebi.gov.in/dp/ashtadraft.pdf -
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QUERIES
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