I take higher cut in film profits, says Aamir
Mumbai, Aug 1 : Superstar Aamir Khan says he takes a higher cut in films' profits because he risks his time on projects. But he does so only after the cost of each film is recovered in every aspect.
The actor-producer gave out the information on the inaugural day of the fifth Indian Screenwriters Conference here on Wednesday.
During an interactive session on the topic ‘Writers VS Producers: Can they never be allies?', Aamir was asked: "There is a worrying trend that now the star has started taking about 80 per cent of the film, not profit but actually as his fees. Even though he is letting his fees go, it ultimately comes to the actor taking away 80 per cent. In 20 per cent how are we going to make a successful film?"
The actor replied: "My first rupee comes to me when the film's cost is recovered in every aspect, after the producer's and everybody else's money is recovered. That's the model I work with, and certainly, I take a higher cut in the percentage because I am risking my time on that, and I think producers are happy with that too."
Explaining the model, he shared: "The model that I work on is that, say a film costs Rs 100 crore to make. It consists of everything - cast, crew, production cost, post-production cost and everything comes in that. I don't take any money in that. I take nothing.
"So, when the film releases, I get zero money. And as it starts earning money, that money goes into P and A (Promotions and Advertising), which is over and above Rs 100 crore. Say P and A is Rs 25 crore, it then goes into recovering that.
"Once P and A is recovered, the producer has recovered his money, and everybody has got their fees...then I go into the percentage of profits. This way, there is no way that the producer can lose any money. And if for some reason, the film has not recovered the money, that it didn't do well, then I don't get any money," he said.
Being part of some of the iconic films like "Dangal", "PK", "3 Idiots" and "Lagaan", Aamir believes that the script plays an important role in the success of a film.
"I think the script is the foundation (of a film) and I make sure that once I love the story and the film is in the making, people who are investing money should not be in loss. I don't allow the producer to shoulder the responsibility alone," he said.
He believes that sharing the responsibility of making the film commercially successful also secures his career and builds trust with the producers and financiers of films.
"I think this is the best business model for film and our business because in most of my films, if producer is not losing money, it is but obvious that he will sign me for the next film. That is why I always ensure that if I am signed in a film, there is no loss," he said.
Citing the example of the 2001 film "Lagaan", Aamir said: "Since that film was one of the expensive films of that time and was breaking a lot of rules of mainstream Indian cinema and that is why I felt the importance of taking the responsibility.
"That apart, I know when I come on board, producers and financiers do not question me on the subject I chose for a film because they trust me, they have faith in me. That is why I want to ensure the profit."
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Rupee hits all-time low for second time in a week
Mumbai (PTI): The rupee depreciated 31 paise to settle at 91.99 against the US dollar on Wednesday, touching the lowest closing level for the second time in less than a week, amid increased month-end demand for the greenback.
Forex traders said the rupee opened higher as the US dollar index softened and a long-awaited trade breakthrough with Europe offered quiet reassurance. However, increased month-end demand for the American currency as well as the ongoing geopolitical tensions dented investors' sentiments.
At the interbank foreign exchange, the rupee opened at 91.60 and touched an early high of 91.50, but pared all the gains to touch an intra-day low of 91.99 against the greenback.
The domestic unit settled 31 paise down, revisiting its lowest-ever closing level of 91.99 against the greenback. The Indian currency previously ended at this level on January 23 when it also hit its all-time intraday low of 92 against the US dollar.
On Tuesday, the rupee rebounded from its all-time low levels and gained 22 paise to close at 91.68 against the US dollar.
Analysts said the rupee opened higher as the US dollar index softened and a long-awaited trade breakthrough with Europe bolstered investor sentiment.
India and the European Union on Tuesday announced the conclusion of negotiations for the free trade agreement (FTA), under which a number of domestic sectors such as apparel, chemicals and footwear will get duty-free entry into the 27-nation bloc, while the EU will get access to the Indian market at concessional duty for cars and wines, an official said.
The deal has been dubbed the "mother of all deals" as it will create a market of about 2 billion people.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower at 96.14.
Brent crude, the global oil benchmark, was trading 0.43 per cent lower at USD 67.28 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 487.20 points to settle at 82,344.68, while Nifty surged 167.35 points to 25,342.75.
Foreign Institutional Investors turned net buyers and purchased equities worth Rs 480.26 crore on Wednesday, according to exchange data.
