The document discusses the Bollywood film industry and its impact on the Indian economy. It provides statistics on the growth of the industry in recent years, the leading production companies, and movies that contributed significantly to revenue. Bollywood is the largest film industry in India and has grown at 11.2% annually. It employs over 1.75 lakh people and contributes 29% to India's economic growth. The industry also benefits the government through taxes and its contribution to GDP, which is expected to reach 22% by 2010.

1. Bollywood Economy

2. Content
• Bollywood
• Indian economy
• Economic aspects of Bollywood
• Leading players in the industry
• Economic growth of the industry in the last 5 years
• Movies that contributed to the growth
• Comparison with other regional movie industries
• Impact of Bollywood on other industries
• Reason for the high rate of investment into the industry
• Impact of recession on the industry
• Benefits to government
• Conclusion

3. Bollywood
• Popularly known as Hindi film industry.
• Based in Mumbai, Maharashtra.
• Originated in 1913.
• Term coined in 1970’s, inspired by Tollywood, the
Bengali film industry.
• Often used to refer to the whole Indian film
industry.
• Unlike Hollywood it does not have a physical
existence.

4. Indian film industry facts and figures
• Over 250 films are censored or released each year in
Bollywood.
• Hindi film industry is the largest film industry in India, in
terms of the ticket sales and the number of film produced
annually.
• 20 million people go to movies on daily basis and pay the
equivalent to average Indians days wages.
• The Central Board of Film Certification cites on its web site
that every 3 months as audience as large as billions
population visits cinema halls.

5. Indian Economy
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.

6. • 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% of
wealth, while the poorest tenth only hold 3%.
• 86% of the population lives under $2 per day;
44% lives under $1 per day.

7. India’s economic projections
• Source: report from Federation of Indian Chamber of Commerce and Industry, New
Delhi dated September, 2010
2008 2009 2010
GDP growth 7.30% 5.40% 7.60%
CPI growth 9.30% 5.50% 4.90%

8. Economic aspects of Bollywood

9. • The Rs.130-billion ($2.85 billion) industry is one of the fast
growing sectors in the country with expanding global
reach.
• Approximately 250 movies are produced each year,
ranging from budget of $200,000 to $50,00,000.
• During the last decade, exports have grown from Rs.100
million ($2.18 million) to Rs.1.5 billion ($32.85 million).
• The industry is expected to grow at the rate of 19 percent
and reach a turnover of over Rs.260 billion ($5.7 billion) by
2011.
• Provides employment to more than 1,75,000 people. Has
employment generating capacity of nearly 35,000 per
year.

10. • In the year 2009 , 27% of the money invested in the
industry was from NRIs and it rose to 31% this year.
• Recently, the Govt has diluted the restrictions
regarding FDI into the media and entertainment,
which allows the NRIs to pool in funds into
Bollywood.
• The industry makes an annual income of more than
US$500 billion a year approximately.
• The industry is growing at the rate of 11.2% per year.

11. Leading Players in the industry

12. • Yashraj films
• Red chillies production
• Eros international
• UTV Movies
• Shree Ashtavinayak Cinevision Pvt. Ltd
• Sheemaroo
• Dharma productions
• Kaleidoscope
• Percept pictures
• Bhandarkar productions

13. Yashraj Films
• Yash Chopra- MD
• Aditya Chopra- CEO
• Highest grosser in the entertainment business.
• Collectively, 8 of the recent YRF productions have
grossed in excess of 200 Million US Dollars worldwide.
• Produces almost 5 movies a year, budget ranging from
40 crores – 90 crores.
• Employs more than 35000 people ranging from
technicians to junior artist and flimstars.

14. Red Chillies Production
• Owners – 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 million from
USA, UK and UAE, in 2009-2010.
• Employs nearly 19,000 people.

15. Eros International
• Owner - Komal Nahta
• Have a strong hold on the overseas markets of
USA and UAE.
• Produces 5 movies on an average each year,
10 crore – 50 crore .
• Have earned a revenue of US$ 135 million from
USA and UAE, in 2009-2010.
• Employs nearly 14,000 people on temporary
basis.

16. Eros International
Year
Class of
shares
Authorize-
d capital
Issued
capital
Paid up
shares
(no.)
Paid up
face value
Paid up
capital
2009-2010 Equity
shares
125.00 71.41 7,14,07,00
0
10.00 71.41

17. UTV Movies
• Chairman –Naresh Chandra
• Concentrates on only small and medium
budget films, ranging from 2.5 crores – 10
crores .
• 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 .

18. Shree Ashtavinayak
Cinevision Pvt. Ltd
• Chairman & MD- Dhilin H. Mehta
• Board of directors –Ms.Seema D. Kar, Mr. Amit A.
Behl, Mr. Kiran B. Mistry.
• Don’t have a strong hold on the overseas markets .
Popular mostly in south- east Asia.
• 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 temporary basis.

19. Growth of the industry in the last
5 years, 2005-2010

20. Year No. of films
produced
FDI Annual
investment
Revenue
earned
2006 284 11% m960 crore US$235
billion
2007 249 17% m840 crore US$340 billion
2008 273 20% m875 crore US$317 billion
2009 241 27% m985 crore US$475 billion
2010 235 31% m1060 crore ---------
Source- report from Research institute of media planning and management,
August’2010

21. • Fastest growing industry in India.
• Contributes 29% to the growth of Indian economy.
• Expected to be the largest contributors of growth in
India.
• Industry is attracting more and more FDI.
• Annual investment is increasing at a rapid rate.

22. Recent movies that added to the
revenue of the industry

23. Top five highest-grossing Bollywood
films in India
Rank Movie Year Studio(s)
Net Gross
(according
to BOI)
Net Gross
(according
to IBOS)
1 3 Idiots 2009
Vinod
Chopra
Productions
Rs.
202,57,00,0
00
Rs.
189,38,74,7
29
2 Dabangg 2010
Arbaaz Khan
Productions
Rs.
140,00,00,0
00
Rs.
142,48,31,0
00
3 Ghajini 2008 Geetha Arts
Rs.
114,67,00,0
00
Rs.
117,48,22,7
56
4 Raajneeti 2010
Prakash Jha
Productions/
UTV Motion
Pictures
Rs.
92,93,00,00
0
Rs.
94,89,66,31
6
5
Rab Ne Bana
Di Jodi
2008
Yash Raj
Films
Rs.
86,78,00,00
0
Rs.
73,52,37,84
8

24. Comparison with other regional
movie industries

25. Other film industries in India
• Tollywood (Bengali)
• Tollywood (telugu)
• Lolywood (lucknow)
• Ollywood (orissa)
• Kollywood (tamil nadu)
• Sandalwood (kannada)
• Bhojpuri film industry

26. Tollywood
• The Bengali film industry.
• Approximately 160 movies are produced each year,
ranging from budget of $20,000 to $3,00,000.
• Provides employment to more than 65,000 people. Has
employment generating capacity of nearly 1500 per
year.
• There has not been any contribution to the industry
through FDI.

27. • The industry makes an annual income of more
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 only 4%
of the growth of Indian economy.

28. Mollywood
• The Malayalam film industry film industry.
• Approximately 90 movies are produced each year,
ranging from budget of $200,000 to $50,00,000.
• Provides employment to more than 35,000 people. Has
employment generating capacity of nearly 1100 per
year.
• There has been contribution to the industry through
FDI.

29. • The industry makes an annual income 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 only 7%
of the growth of Indian economy.

30. 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 30,000 people. Has
employment generating capacity of nearly 1000 per
year approximately.
• There has been 11% contribution to the industry
through FDI.

31. • The industry makes an annual income of more
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 only 3% of
the growth of Indian economy.

32. 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 32,000
people. Has employment generating capacity of
nearly 1700 per year approximately.
• There has been no contribution to the industry
through FDI.

33. • 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 only
2% of the growth of Indian economy.

34. Ollywood
• Approximately 60 movies are produced each year,
ranging from budget of $60,000 to $2,00,000.
• Provides employment to more than 15,000
people. Has employment generating capacity of
nearly 2000 per year approximately.
• There has been no contribution to the industry
through FDI.

35. • The industry makes an annual income of more
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 only 1.7%
of the growth of Indian economy

36. Comparison with Bollywood
No. of films
produced
Growth rate
of the
industry in %
Annual FDI in
%
% of income
added to
Indian
economy
(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

37. Comparison with Bollywood
0
50
100
150
200
250
300
% of income
added to
indian
economy
%growth rate
of the
industry

38. Impact of Bollywood on other
industries

39. Music industry
• Almost 70% of the Indian music industry depends on
Bollywood.
• Bollywood is responsible for pooling in almost 75% of
revenue earned annually.
• The potential of the Indian music industry can be better
understood from its size estimated at around US$ 182.9
million in 2010, up from US$ 160.9 million in
2008, portraying a growth of 14 per cent during the
reporting period. It is expected to grow at a CAGR of 16 %
over 2010-14 to reach US$ 379.1 million.

40. Media and advertisement
• The Indian Media and advertisement (M&A) industry stood at US$
12.9 billion in 2009 registering a 1.4 per cent growth over last year.
• According to a joint report by KPMG and an industry chamber. Over
the next five years, the industry is projected to grow at a compound
annual growth rate (CAGR) of 13 per cent to reach the size of US$
24.04 billion by 2014.
• The report stated. Additionally, the gaming segment is expected to
be the fastest growing sector in the M&A industry. The sector
showed a 22 per cent growth in 2009 and is expected to grow at a
CAGR of 32 per cent to reach US$ 705.2 million by 2014

41. Other Industries
• Apparels industry
• Disc producing
• Prop industry
• Tourism industry
• Recreational industry
• Television industry

42. • Less regulations in Foreign Direct Investment.
• Increased demand for the Bollywood movies in
India as well as in abroad.
• Awesome turnovers from the recent movies.
• Withdrawal of recession.
Reason for the high rate of
investment into the industry

43. Effect of recession on the industry
• The total revenue that Bollywood earned in 2008
was R10,900 crore with an overseas collection of
r977 crore.
• The overseas box office also saw a major drop of 30
per cent with a cut down in the film going audience.
• KPMG has estimated that the domestic box office
revenue in 2009 will be around R7,880 crore as
compared to m 8.020 crore in 2008, thus bearing a
loss of about a 100 crore

44. Consumer preferences
• Multiplex
• Theater
• Home viewing- DTH services & DVD, CDs
copyright
• Internet , Pirated CDs

45. Government’s benefits from
Bollywood

46. Entertainment tax
• One of the highest revenue earning sectors from
tax in entertainment industry is cinema.
• The entertainment tax department collects the
tax from the sponsors and deposit it to the
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 total
entertainment tax from Bollywood.

47. Corporate tax from the production
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 levied on
the company.

48. Contribution to GDP
• The present GDP rate is 7.60% and wants to
attain 9% by 2010.
• The Bollywood industry added to 19% of the
total GDP of the country in 2009 and is
expected to contribute 22% of the GDP in
2010.

49. Conclusion
• Bollywood affects the Indian economy beyond
limits. It’s proving itself to be ahead of the
curve both politically and socially . It has
pushed viewers to address issues of
communal relations and religious intolerance
within India. Bollywood has asserted itself as a
popular vehicle for discussion , reflection and
social change.

50. Reference
• http://www.sebi.gov.in/dp/ashtadraft.pdf
• http://www.moneycontrol.com/financials/shreeashtavi
nayakcinevision/balance-sheet/SAC03
• http://www.bollywoodhungama.com/features/2008/1
1/14/4503/index.html
• http://filmistan.mywebdunia.com/2009/02/07/no_rec
ession_in_bollywood.html
• http://business.mapsofindia.com/india-tax/corporate-
rate.html
• http://www.economywatch.com/foreign-direct-
investment/