The Vishal Bhardwaj directed film Rangoon released on February 24. Starring Saif Ali Khan, Shahid Kapoor and Kangna Ranaut, the film told the story of a love triangle set during the period of the Second World War. However, the rather dated theme and setting of the film didn’t sit too well with the audience, if that wasn’t enough the mixed reviews from the critics further dented the overall box office collections of Rangoon.Box Office: Understanding the economics of Rangoon and the mammoth losses that Viacom 18 will incur

 

In this special report we take a look at the collections of Rangoon while at the same time juxta positioning the film’s earning with the expenses in production to gain a better understanding of how profitable it was for its makers. Made on a budget of Rs. 80 cr (CoP Rs. 67 cr + P&A Rs. 13 cr) Rangoon proved to a rather costly venture. Sadly the less than average box office earning of the film have severely dented the film’s profitability. In fact collecting just Rs. 19.45 cr at the domestic box office (we expect the domestic business to close around 20 cr.) and another Rs. 11.04 cr from the overseas markets coupled with approximately Rs. 2 cr coming in from satellite rights (assuming that there is a buyer), Rangoon has earned a paltry Rs. 13.42 cr for its makers.

 

This low key return has effectively translated into the makers of Rangoon (Viacom 18 Motion Pictures), a colossal loss of Rs. 66.58 cr with a negative 83.23% rate of return on investment.

 

Economics of Rangoon for Viacom 18

 

Cost of Production - 67 Cr.

 

Cost of Marketing (P&A) - 13 Cr.

 

TOTAL COST - 80 Cr.

 

India Theatrical Box Office - 20 Cr. (Approx Business)

 

Distributor's share (A) - 9 Cr.

 

Overseas Theatrical  Box Office – 11.04 Cr. (At the close of second weekend)

 

Distributor's share (B) - 4.42 Cr.

 

Satellite Rights (C) - 2 Cr. (Assumption)

 

TOTAL RECOVERIES (A+B+C) – 13.42 Cr.

 

PROFIT - -66.58 Cr.

 

RETURN ON INVESTMENT (ROI) - -83.23%

 

Disclaimer:

 

The Box Office figures are compiled from various sources and our own research. The figures can be approximate and Bollywood Hungama does not make any claims about the authenticity of the data. However, they are adequately indicative of the box-office performance of the film(s).

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