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Shahrukh Khan-The Entrepreneur


Shahrukh Khan is a household name in India and is popular among Indian Diaspora abroad too. He is the CEO of Red Chillies Entertainment. He is one person who has correctly figured that he is not in the movie business but in the entertainment industry. Over the years Shahrukh Khan has changed from being nobody from Delhi to a person whose personal wealth amasses Rs 1500 making him the richest film actor in India(source:Business World). This was made possible because he never stuck to film industry alone.

An actor’s shelf life is limited and his making big in the film industry depends how his movies fare every Friday. You have to be consistent for a long period of time before you can reach a certain standing. Shahrukh having done that, diversified to make himself a brand. He entered into movie production with Red Chillies entertainment. He could be seen hosting events and even dancing at weddings and birthdays. Of course he charges heftily for that. His 40 min appearance alone can cost you around Rs 5 crore and he charges Rs 12 crore per film for which he work around the year. Also when IPL was started, Red Chillies Entertainment was quick to seize the opportunity and brought Kolkata Knight Riders for a sum of Rs 295 crores. Although the team has not performed well in the three seasons of IPL but it has posted profit in all the three years and going by the sum for which new teams were bought (Rs 1700 crores for Pune and Rs 1500 crores for Kochi), the price that KKR will fetch is anybody’s guess.

The realization that cricket comes under the bracket of entertainment industry helped him make a foray in the market. Apart from that he has hosted shows on T.V.

Red Chillies Entertainment is one of the companies that encompasses virtually all the entertainment sector in India. The revenue posted by Red Chillies Entertainment in the financial year 2008-2009 was Rs 73 crores. A break up of the company is given below
Red Chillies Films- This division is responsible for the production of the film. Main Hoon Na, Om Shanti Om were produced under the Red Chillies banner.
Red Chillies Idiot Box- This division produces and co produces television serials. Seeing the explosive growth of the TV industry this may be the division minting money for the company in the future.
Red Chillies VFX-It deals with Post Production and special effects segment.
Red Chillies TVC-This division is responsible for making ads and the client list includes the likes of Hero Honda, Pepsi, ICICI, Hyundai etc
Kolkata Knight Riders-This is an IPL team which participates in the IPL tournament. Though the team has not performed well, it however has posted in the three seasons of the game.
The entire gamut of entertainment is included in the various divisions of Red Chillies and the market for animation and special effects is set to grow in India making Red Chillies VFX promising. Also the fact that Kolkata Knight Riders was brought in the first season for Rs 295 crores speak about the opportunities of growth. Considering the fact that Kochi and Pune teams were bought at around Rs 1500 and Rs 1700 crores respectively, the valuation for KKR increases significantly.
The goal for Red Chillies TVC is to churn out 100 commercials per year from 40-45 commercials that it produces annually.
As a whole, Red Chillies Entertainment future seems promising for the simple fact that they have not only invested in movies (which could have been their strong domain considering that Shahrukh features in the films), it has diversified in the TV serial segment, ad industry, special effects and last but not the least cricket. This speaks about identifying your business domain correctly and broadly.

I hope to see Shahrukh making strides in the Industry and be as successful as he his with his film career.


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IPL Experience

As the whole country is suffering from an IPL frenzy both on and off the field it was only natural that I will be a victim of the IPL bug too. Thankfully I was part of the excitement on the field and not a part of off the field event (though the latter would have meant good looking bank balance).
Me and my friends went to see the match between Kings XI (though they performed like losers) and RCB (who by the way are knocked out of the tournament now) at Mohali. Thankfully we bought the tickets for the night match because it was so hot that day and 4:00pm match would have been total disappointment. Well anyway the match began and Kings XI was put to bat first. For those of you who have not seen the match from the stadium (yes I will rub it in), it was truly a different experience, much better than TV could provide. To begin with the atmosphere is electrifying and lush green outfield is a treat to watch.
You should have seen Steyn charging and bowl at 150 kph, exhilarating I must say. When Sangakara smashed him for the boundary, the sound from the bat gives you goose bumps. Not only was RCB up against Kings XI but it was also up against the home crowd. The noise, constant music and the chants from the crowd is sure to make players go nuts. Unfortunately for me, I am Bangalore sorry Bengaluru fan and hence the only one to cheer during Marsh dismissal and attracted some stare. I was particularly afraid of a girl sitting in front of me(must be 12 something), my god the way she stared at us everytime we made cheered, it almost felt like she was my school teacher. Though later in the night I gained in confidence and gave her stare back, she really was a Hitler (God bless her parents).
Anyways moving on the cricket field, Kings XI managed a decent score and RCB had to chase a stiff target. Theirs openers did not fire but then KP did, scoring a thoughtful and brisk half century. He was ably supported by Kohli but then the night belonged to Uthappa and the way he smashed two sixes off the Brett Lee over took the match away from KingsXI. This is one sight I would not forget in a hurry. Brett Lee firing up 150 something’s and the way he was manhandled by Uthappa. It’s a disappointment that he is not making the team during world cup but then he proved himself worthy of the money spent on him by the franchise. The match ended and gave a favourable result for me at least though the home crowd was disappointed and they had a good reason what with the sloppy fielding and sweaty palms.
IPL sure has changed the complexion the way cricket is played and its more pleasant considering it’s only three hours and there is glamour associated with it. By the way cheer leaders look better in person than on TV. Hope the off field events do not spoil IPL.

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