A cinematic divide



When the Bollywood legend Amitabh Bachchan embraced the South Indian movie icon Mammootty moments before the Dubai International Film Festival's opening-night ceremony earlier this month, one industry insider exclaimed: "That is Indian cinema. There are no more gaps between Bollywood and the rest." A poignant moment for Indian cinema, perhaps, but Bollywood and the regional industries could not be more different in their identity and influence. In the past decade, Bachchan and his colleagues from Mumbai have helped Bollywood extend its appeal beyond the Indian diaspora. They have enthralled international audiences with their brand of cinema featuring brightly coloured and neatly choreographed song and dance routines incorporated into a melodramatic script emphasising family values. However, regional actors such as Mammootty, who goes by one name, have often expressed diplomatic disdain over the perception that Bollywood equals Indian cinema.

Although Bollywood - a term coined by the international media in the past decade much to the chagrin of its heavyweights - has been inclusive of regional talent within its Hindi-language format, its cinema represents a tiny portion of the films produced in India. The country's film industry - comprising Bollywood and 11 regional languages - has the highest production output in the world. However, films in Hindi account for only 22 per cent of the total production and contribute 25 per cent of the revenue of the Indian film industry. Bollywood's brightest stars are better known among non-Indian followers of Indian cinema, but the southern celebrities are equally capable of causing a stampede - as was the case when Mammootty, who is from Kerala, visited the UAE in October.

"India is a big enough country with large groups of audiences that are loyal to different kinds of cinema. There is no definition for Indian cinema, but to represent one kind of film as Indian is not correct," said Mammootty on the sidelines of the festival. Much of the Bollywood-versus-regional debate emanates from linguistic pride, which defines regional political movements and resistance to Hindi as the official language in India. While India's national film awards take into account the diversity of Indian cinema and send non-Hindi films as India's official entry to the Oscars, regional films are not helped by the presence of privately organised Bollywood award shows that travel around the world and market themselves as "Indian".

"When you look at something like the IIFA (International Indian Film Academy) Awards, which go to a different foreign destination every year but do not include non-Hindi films in their nominations, it is very misleading to a foreign audience that's not familiar with the entire scope of Indian cinema," says Mammootty. Interestingly, the brand ambassador for the IIFA event, which was instituted in 2000, is Bachchan, one of the most vociferous opponents of the term "Bollywood". The 67-year-old star, whose career spans more than 40 years and 150 films, has witnessed first-hand the shift in international attitudes towards the industry he works in - from ignorance to ridicule and now acceptance.

"Globally, I think our cinema has entered a stage of appreciation," said Bachchan at the Dubai festival. "We are conscious of this," he added when asked about the absence of regional cinema specifically within the IIFA context. "We've decorated people from South India, premiered their films and are consciously looking into all aspects of cinema in India to make sure they all have a presence." Changes in Indian society, brought about by globalisation, have resulted in a massive inner-Indian migration exposing communities from one part of India to previously unfamiliar forms and genres of cinema from other territories. Such opportunities were previously limited to the national broadcaster screening a regional film with English subtitles every Sunday afternoon.

"Better subtitling, marketing and distribution has definitely played a role in Bollywood cinema gaining a larger audience," says Uma Da Cunha, the editor and publisher of Film India Worldwide, a publication that covers commercial and art-house films. "The cinema divide in the 1970s and 1980s was between commercial and art only because Bollywood was essentially looked down upon. The divide is now between Bollywood and regional cinema. Regional DVDs are slowly picking up with the subtitling, but still suffer from poorer distribution and sell through video CDs. Until they reach the same professional marketing levels as Bollywood, they will face challenges in expanding their base."

Regional Indian cinema can be equally commercial, featuring the same elements - song, dance, action and emotion - that define the Bollywood genre. "The perception that Bollywood is all that Indian cinema has to offer is dangerous as it prevents regional cinema from widening its audience base," says Da Cunha, who has been associated with the Indian film industry since the 1960s and programmed art-house cinema for museums abroad.

The experience, for example, of watching a South Indian commercial film on its day of release, is a novelty in itself. "I remember watching the first show of a Tamil film, Sivaji the Boss, with Rajnikanth, a Tamil actor who's supposed to be bigger than Bachchan in terms of iconic status. The audience was a mix of all income groups of Tamilians in the UAE and the front rows went wild before the film even started, when the curtains opened. The atmosphere was like a rock concert and every time Rajnikanth came on screen, people would jump out of their seats to whistle and clap. I've never seen that kind of passion for a Bollywood film," says Laurent Caranobe, a native of France who is married to an Indian and living in the UAE.

For film curators and programming consultants such as Dorothee Wenner, who works with the Berlinale and Dubai's film festival, India is a planet in itself in terms of its cinema. "Southern cinema - if one may generalise - is even more extreme on an emotional level. It usually has a more traditional value system from which the stories are derived. Bengali and Marathi cinema draw a lot from a very rich literature, and the Malayalam movies often have explicit social messages. Yet, today, one will find proof that these patterns and distinctions are dissolving or merging, since a new generation of filmmakers is entering the scene, many of who might work in Chennai and in Mumbai. Then there are lots of intra-Indian 'remakes' happening in both directions," says Wenner.

The South Indian industries, in particular, have also always enjoyed enormous economic strength and produced a high calibre of technicians - two of whom (Resul Pookutty and AR Rahman) won Oscars for their work on Danny Boyle's Slumdog Millionaire. Since the 1960s, South Indian production houses have financed a number of Bollywood blockbusters. Mumbai's Hindi films have also welcomed actresses from other Indian states. Audience tastes in India's north, however, have proved to be a stumbling block for southern actors, as their Hindi diction and darker skin find them few fans outside their home turfs.

With adequate financial support and a large viewership, there appears to be little need to increase the fan base, as the regional stars are already iconic within their industries. There are, however, advantages in taking the regional Indian films international. "There's definitely no need. But I'm a believer in cinematographic diversity, so I also think of audiences residing beyond the Indian communities who are missing out a lot by not seeing these films," says Wenner, who uses film festivals as a springboard to introduce regional Indian films to serious fans of cinema. At the Dubai festival, Wenner facilitated the presentation of films in the Tamil, Malayalam, Bengali and Marathi languages. Although the audiences were largely from the regional communities, as was evident from the Q&A sessions, Wenner says each non-Hindi film had at least "a few non-Indians and Indians unfamiliar with the language".

Global cinema now accustomed to Bollywood might soon be hungry for material from the newer markets within India's cinema industry. Regional cinema to some extent has not completely adopted the image favoured by big-budget Bollywood films that are designed to appeal to the international and globalised Indian. As an art form, they are still widely considered a more authentic representation of the regions they originate from with scope for experimental scripts and narratives.

Sensing this untapped potential for India's regional cinema to become the next big thing, corporate entities such as Reliance Big Pictures and Moser Baer Entertainment have ventured into producing, marketing and distributing regional cinema. "It's not a strategy to position Bollywood as representative of cinema from India, but Bollywood is the closest thing India has to a national cinema. Regional cinema is collectively more prolific, but it hasn't yet grabbed the attention of foreign audiences," says Sanjeev Lamba, the chief executive of Reliance Big Pictures. The company is the media and entertainment arm of the Reliance ADA conglomerate, which made headlines through its deal with Steven Spielberg's DreamWorks.

Although the marketing and distribution machinery appears to be following the Bollywood formula, regional cinema is bound to face enormous challenges in going global. G Dhananjayan, the chief executive of Moser Baer Entertainment's film business division, understands the challenges. "South Indians account at best for about 35 per cent of the total Indians abroad. This demographic itself includes four languages and their speakers are scattered in different countries. At this point film festivals are the best route for foreign audiences to watch regional Indian films. There is definitely an opportunity, but it's still a long way from reaching Bollywood levels of popularity internationally."

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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