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In an interview to CNBC-TV18, Jain adds that Ranjhana was the third successful film after Vicky Donor and English Vinglish produced by the company. Jain also highlighted that satellite and music rights to Ranjhana were pre-licensed as a derisking strategy.
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Below is the edited transcript of the interview on CNBC-TV18
Q: How much have you already made on Ranjhana?
A: We are happy with the performance of the film at the box office. Last weekend, it raked in about Rs 31.5 crore gross worldwide. Out of that, about Rs 26.5 crore was earned in India and Rs 5 crore came from the box office overseas. The film's box office It is phenomenal given that the budget was medium and the cast is relatively new.
In the last one year, we focused on supporting films high on content, small-to-medium in budget and distributed them worldwide. After Vicky Donor, English Vinglish, Ranjhana has been a good success. On Monday, the film raked in net collections of Rs 3.85 crore in India alone.
Q: How much profit will accrue to Eros International?
A: In India, on an average gross collection of Rs 50 crore, there is a entertainment tax of 30 percent across the country. In states where the entertainment tax is not levied, the collections are a little higher. So about 75 percent of the collection is available to be apportioned between the exhibitors and distributors. As a thumb rule, about 40 percent of the gross collections is our topline.
I think the percentage apportioned to distributors and exhibitors still stands at 50 percent and in the first week you get an additional bonus of 2-2.5 percent. About 52.5 percent of collections accrue as revenue for the producers.
Q: What about the cost?
A: As far as this particular film is concerned, we pre-licensed the satellite and music rights as a derisking strategy. The film should be profitable and deliver a very high return-on-investment from a marketing and distribution perspective.
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