Varanasi 275 Cr Deal: Can Rajamouli Break the Pattern?

Mahesh Babu and SS Rajamouli’s Varanasi is easily one of the biggest and most ambitious projects in Indian cinema. Now, the business happening in the Telugu states is giving a clear indication of the hype surrounding the film.

According to industry buzz, Varanasi’s Telugu states business is being valued at more than Rs. 275 crores. If the deal goes through at that level, it will become the highest pre-release business figure in the history of Telugu cinema, surpassing RRR’s Rs. 225 crores. Top distributors, including Dil Raju, Mythri and Sithara, are reportedly among the frontrunners interested in the Telugu states distribution deal.

However, these are still ongoing business discussions. The deals are reportedly on hold at the moment, with a clearer picture expected after Dussehra.

However, a massive pre-release business figure also comes with massive pressure.

If distributors invest more than Rs. 270 crores in the Telugu states, the film will need an extraordinary theatrical run to justify that valuation. A big opening alone will not be enough. The film will need strong word of mouth and sustained collections throughout its run.

To recover Rs. 270 crores, Varanasi would need to do more than Rs. 500 crores gross in the Telugu states. That is a tough ask, but not impossible for an SS Rajamouli film.

RRR was a huge blockbuster, but there were reports that some buyers in the Telugu states did not reach breakeven. Rajamouli now needs to deliver an even stronger film with Varanasi so that buyers do not merely recover their investments but also make decent profits.

It is becoming unfortunate that many pan-India films are now considered successful if they simply reach breakeven. Ideally, films of this scale should create strong profits for everyone involved.

Varanasi has the scale, star power and director to create something much bigger. The real goal should be to become a rare pan-India and global film from Tollywood that achieves breakeven and delivers healthy profits in all markets.