Renowned filmmaker and producer Karan Johar recently shared insights into the complexities of producing big-budget films during his appearance at CNBC TV18’s Global Leadership Summit. Reflecting on the challenges faced by filmmakers handling projects with massive financial stakes, Johar delved into the nuances of funding, financial recovery, and profitability in the industry.
Karan Johar confesses that it’s “not possible to fund Rs 250-crores films alone” as he speaks about financial challenges in filmmaking, calls middle-budget films “real bread and butter”
Big Budgets and Bigger Challenges
Speaking about big-budget productions, Karan Johar acknowledged the difficulties in securing funding for films exceeding budgets of Rs 250 crore. He explained, “The bigger the money spent is also the bigger, larger journey to recovery.” Johar emphasized that such ambitious projects often require collaboration with other studios, as financing solely through one production house is not feasible.
“If I make a film that is over Rs 250 crore, Rs 200-300 crore, it’s not possible to fund that totally at our stage, even now. Even when we made big hits, we were always sharing the profit,” Johar revealed.
Middle-Budget Films: A Safer Bet
While big-budget films garner attention, Johar highlighted the importance of middle-budget productions for their consistent profitability. Films with budgets ranging between Rs 65 crore and Rs 80 crore often yield better financial returns, he explained.
“Those are the films that you can actually fund entirely on your own and reap the benefits of that big breakthrough profit,” Johar said, explaining that larger budgets do not necessarily guarantee higher returns. He further clarified, “As much more when everybody thinks bigger the film, bigger the money made, it’s not always true.”
The Success of Kill
During the event, Johar also discussed the success of his recent production, Kill. The action thriller not only made an impact at the domestic box office but also gained international recognition.
“When we had a breakthrough film like Kill that made waves internationally, it was an electrifying moment for us,” Johar stated. He further revealed that deals struck at the Toronto International Film Festival have paved the way for the film’s English remake and multiple dubbed versions, marking a significant milestone in showcasing Indian storytelling on the global stage.
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