Sunday, August 11, 2013

Shah Rukh Khan's business empire

The secret behind Shah Rukh Khan's business success. A review. 
     ‘Shahan Shah’ was the title used for emperors in the Mughal dynasty.  What else we could call Mr Shah Rukh Khan while he has been twinkling in Bollywood as well as in business world simultaneously.  The Shahan Shah of business!  The emperor of business world!  Shah Rukh’s business empire is formed by the companies like Red chillies entertainment, Kolkata night riders, Kidzania India etc. The area covered by the empire is as wide as the diversified sectors like Visual effects, film production, sports, edutainment etc.  The empire might extend the border of its area wider towards restaurants, cricket, along with other sports items. The empire has been built up with a capital of approximately 2,000 Cr rupees.

     The asset of Shah Rukh khan touches up to 2,000 Cr rupees. All these assets have been earned through years of toiling in business as well as through acting in movies and advertisements. Shah Rukh, while being the ambassador of as many as 40 brands, earns as much as 300 Cr rupees from that sector itself.   Rupee around 8 Cr is the value of Shah Rukh for acting in one advertisement movie while he earns around 80-90 Cr rupees from different stage/television shows.   He has 700-800 Cr rupees of asset in real estate which included the residences in Mumbai, London and Dubai.  Remaining 800 Cr is the value of Red chillies entertainment and Kolkata night riders.

Red Chillies, IPL, Kidzania
      A visual effects (VFX) studio is running in the banner Red chillies entertainment which is amongst the leading ones in India in this sector.  It is located in western Santa Cruz, Mumbai.
Red chillies has a cinema production division and it has released many block buster movies as well. Most of the finance of Red chillies entertainment is found out from the film production division. Indian Premier League (IPL) T20 cricket is another province of Sha Rukh’s business empire.  As the owner of IPL team Kolkata night riders, he has 55% shares in the company.  Although the team, in first season, had collapsed and pushed back to the last one in point rate, when it reached in the 5th season, Shah Rukh’s team won the crown and the team was known as the first IPL team which started running in profit.   It was in 2012 the gain achieved.

     Joining Kidzania, the multi-national company based in Latin American country Mexico, Shah Rukh extended his business towards the edutainment sector as well.  The aim of Kidzania, as the name indicates, is to provide secured, special and realistic education to the children in the age group of 4-12 as well as to their parents. Shah Rukh has 26% shares in Indian edition of the company, Kidzania India.  Shah Rukh’s personal mission by this is to circulate the brand in India. Its first education theme park is located in Mumbai and it opened offices in metros like Mumbai, Delhi and Bangaluru. The education theme park is built in 75,000 square feet land and has the convenience for children to involve in more than 80 types of activities at a time.

Business perspective 
     Why Red chillies? Why not Shah Rukh Khan Productions? These questions also have clever answers. 'Not interested to use my own name in business. That’s all'. He says.  The debut of Khan as a producer is with ‘Dreams Unlimited’ a film production company started in 1999, joining with former Bollywood star Juhi Chawla and director Ashish Mishra.  Shah Rukh's first business establishment also was Dreams Unlimited.  In 2004, Dreams Unlimited was taken over by Shah Rukh himself and changed the name to Red chillies entertainment. The only partner in this attempt was his wife Gauri.

     Although Red chillies didn’t face any acute bad times, it has been forced to shut down a few of its divisions. Red Chillies idiot box, a company started exclusively for TV shows, is one among them. After starting the businesses, Shah Rukh is not simply sitting at home.  Rather, he is closely watching the other large scale entrepreneurs and relentlessly studying their business activities. He has already directly seen how the company of Rajiv Bajaj produces a scooter in 15-20 minutes and how ICICI bank is professionally lead by KV Kamath.  He has also studied about the refinery activities of Reliance, joining with Nita Ambani, wife of Mukesh Ambani. Shah Rukh says that his ambition is to grow as an entrepreneur like these business tycoons.

     Shah Rukh never thinks about austerity measures. “‘Every thing will go its own course’; People with this mentality care the austerity measures.” He says. Shah Rukh wishes to produce a movie with 140 Cr rupees while others do it with just 40 Cr rupees. This shows that he is strict, adherent on quality and not ready to compromise in it.

The brand SRK
     While the other business entrepreneurs use cinema-cricket stars for promoting their brands, all in all for Red chillies is Shah Rukh Khan himself. He is also known as SRK in abbreviated form. Promoter, brand ambassador, icon, motivation, financial source... all in all is no one else but SRK.   Spending time for business after busy schedule of cinema sets, as far as a Bollywood mega star is concerned, is not a small thing.   In Bollywood, stars are rarely stepped into the business world. Among the rare ones, the succeeded ones are very very rare.  Yet, Shah Rukh’s growth is surprising for even traditional business tycoons. The answer for the people who ask about the secret of his business growth is, in his own words… “I will deliver passion and quality. Else, take your money back”.


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