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TIPS Industries CMD, Kumar Taurani, in an Exclusive Interview

This edition we have altered the interview format to make it more interactive & user friendly. So you can click the link - VIEW VIDEO below each question to watch Kumar Taurani answer them.

Q: Let me quote Mr. Ramesh Taurani from an interview in the businessofcinema.com portal where he said 'Music market is flourishing in terms of popularity but there are no profits' - Do you also believe that lack of profits is the reason for this shift in focus to Bollywood movie production?
A: Actually you can’t say we are shifting focus from Music business to the Film business because earlier also we were making 2 to 3 films a year. But in between there was a huge profitability or business in the music market so we concentrated more on music than films. But now as far as the physical sales are concerned the quantity of CD sales has dropped & these days people are only listening to music and not buying music. Hence music is popular but not generating sufficient revenues. So in the music business we are doing a lot of non-film music- like recently we have signed a lot of artistes like Aatif, Alisha etc.

View Video (This one's a must-watch!!!)

Q: Why is TIPS suddenly bullish about producing Bollywood movies??With a spate of movies slated to be released one after the other. Naqaab, Race (Saif & Bips), another movie (directed by Aziz Mirza and Shahid & Vidya Balan), remake of Amar Akbar Anthony, another film with Amrita Rao. That’s quite a handful. Are we seeing TIPS slowly transform itself into a Bollywood Production House??
A : Actually the industry is growing like that. Earlier the producers used to sell the music of a film to music companies. Now the producers themselves have started doing music marketing and video marketing. So we have to adapt to this kind of industry transformation. But being a music company and having a good repertoire we wanted to have a mix of everything. In the near future maybe we will have 4-5 films produced by our own music company.

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Q : So what is the kind of investments you have in both film and music business and what is the return on investment you are enjoying?
A : I think in terms of revenues it will be more like a 30 : 70 ratio. 30% from music and 70% from the film business. I have earmarked the similar proportions as investments too.

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Q : Has your latest movie NAQAAB lived upto your expectations ?
A : NAQAAB had an average response. The opening of the film was not as per our expectations because of the huge craze of HARRY POTTER amongst children. And we all know that children drive parents to the theatres. HARRY POTTER is a very big brand. But overall in the past 3 weeks NAQAAB has given us a consistent average performance.

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Q : Tell us something about your debutant actress Urvashi Sharma? Is she here in Bollywood to stay or is she one amongst the many?
A : I think she is here to stay. Since we launched her in MIKA’s video 'Something Something' to this day, her response & curiosity about the industry has been very positive. Everybody was asking ‘who’s she, we want to meet her, we want to cast her in our film.’ That’s when we thought why not cast her in our own film, which we were producing. Besides Naqaab needed a fresh face. So if you see, in NAQAAB the role demanded a fresh face & Urvashi fitted the role & character perfectly.

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Q : There are talks of another movie with her as well. Tell us about the new project??
A : We have signed her as an artiste with our artiste management division which has professional managers to guide and mould her career. So we are doing 8 films with her as part of our contract & after that we definitely will look forward to doing more films with her.

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Q : Do you plan to extend yourself to the regional markets as well like Tamil, Telugu, or for that matter Bhojpuri which is raking in the Moolah?
A : YES. Very much so. The last year we did a Punjabi movie called “Dil Apna Punjabi”. The movie did very well and this year I have plans to do a movie in Tamil or Telugu. Lets see how it shapes up.

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Q : Tell us something about your tie-up with Nimbus?? Market sources put the size of the deal at Rs. 22 crore. Is it a big deal that TIPS has cracked?
A : Nimbus has bought all rights of our movie NAQAAB except the music rights, for 5 years. They will do the marketing, distribution etc, and recover their money first. After that they will charge me a small commission for whatever they have invested. And on overflow we will share our margins. That’s the kind of deal.

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Q : The music industry in India has reportedly been facing turbulent times in the past few years. In such a scenario do you see TIPS doing any Mergers & Acquisitions?
A : If you see the period between ’99–00', we have acquired so many music companies. I think only TIPS has done that. If you remember there was a company by the name ‘Times Music’, with Dhirubhai Shah, Hasmukh Bhai and Pravin Shah onboard. We acquired that. Then there was a company called ‘Western’ by the Vachani’s from Delhi, ‘Oriental Melodies’, Vasudha Kaveri of South India & a Gujarat based company called ‘Rajshri’. We have acquired a couple of companies like that.

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Q : Are u planning to acquire any new music company in the recent future?
A : YES. 100%. The market has presented me with the right time to do so.

Q : Please tell us about the latest company you plan to acquire ?
A : I will have to decline commenting on that. It would not be right to discuss this right now without a concrete offer. But if there is any offer or anything I am open to it.

Q : Are you planning a growth via acquisitions in your Film Business as well??
A : No we don’t plan to acquire any film production company but yes we are very keen on the television software business. So I’ll be entering into the television software business.

Q : So will we see a TIPS produced Serial soon??
A : Maybe. I am a little unsure as of now but that’s what my gut feel says.

Q : Tell us something abt ur digital plans?
A : We are building up our own digital website where we will show case our repertoire which can be accessed by people from anywhere at any time. I believe the future of the Music Industry is DIGITAL.

Q : Tell us about your plans in the Mobile Music Market and the Radio market?
A : TIPS is extremely excited about both these markets. These mobile players are our new distributors. They sell our repertoire on their platforms. Very soon we’ll be having tie-ups with the mobile players to give our collection priority. I believe that the industry has to come together to achieve the desired benefits of DIGITAL SELLING. One can’t achieve everything all alone.

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Q : Are you planning investments in these markets also or will it be just plain sharing of content?
A : Anything can happen. We might buy some stake in these companies and give them our repertoire on an exclusive basis. Maybe we might put into place a subsidiary of TIPS. But all of this is just in the planning stage.

Q : In this age of DIGITAL MUSIC do you think the Anti-Piracy raids done by the IMI is effective and is the best solution?
A : I think fighting against PIRACY is a very huge effort. The industry currently requires 100 crores to fight piracy & we don’t have that kind of money to invest. I think its high time the Govt. Of India intervenes to protect us. It’s actually their job. All over the world it is the Govt. who does this job of Anti-Piracy but unfortunately in our country they don’t.

Q : Are you satisfied with the performance of the IMI?
A : Absolutely. IMI has given us an excellent track record. We had some very effective convictions. But its too less. It has to be very regular to be effective.

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Q : Does TIPS see itself individually getting involved in the anti-piracy crusade? While many music companies have rallied around IMI and its activities, there are others who have moved away and prefer to go solo. What would you like to say to them?
A : In this context I don’t think any music company can go solo on Anti-Piracy and achieve anything. We are business men. We can’t get onto the footpath chasing pirates. It’s a different kind of a job. IT IS THE POLICEMAN’S JOB. A business man can’t do the Policeman’s job.

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Q : What kind of support do you provide to the IMI as a body?
A : Since the time of formation of the IMI, we have been very active in providing financial support to the IMI. Since the past 9 yrs we have invested 30 – 40 crores in their Anti-Piracy activities. But its not enough. In the IMI only 5 – 6 members are active in contributing funds. We have been one of them and will continue to do so in the future.

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Q : What do music companies like TIPS expect from a body like IMI? How do you chart their progress in the Indian context?
A : Whatever we contribute, IMI has performed fantastically. I do not have any major complaints about them. The IMI has been giving us an extremely good performance with their anti-piracy teams under the leadership of Mr. Riberio, ex - police commissioner of our city. He has done a fantastic job and we all appreciate it. But he needs more resources, which should be sorted out soon.

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Q : Since long, TIPS has continued with its strategy of promoting BOLLYWOOD music. Is there likely to be a change in the years ahead? Are we going to see some action in the International Music space as well??
A : If I enter the English music market my competition will be with the International biggies like Universal, Sony, etc. The kind of investments they make on one artiste is equivalent to the total size of my company. So I don’t think in the near future we will enter the English music market. But maybe the day I get 100 hits in a row and I become a 10,000 Crore company, I might think on those lines. At the moment I am concentrating on the HINDI FILM music market alone.

But internationally we are very serious and committed about the Pakistani artistes. Recently we have signed a couple of new artistes as well like Abrar – Ul – Haq, Ahmed Jehangir, Aadil, etc.

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Q : Is Pakistani music a passing fad that you are capitalizing on ?
A : No. I believe if the music is good it’ll always stay. Pakistani artistes are good and they will sustain. 1 or 2 artistes might not work. But Pakistani music is happening and it looks like they will be chart toppers. At TIPS we have teams who will ensure that they perform to the best of their potential.

Just to end it on a lighter note Sir,

Q : Your hobbies / pastime ?
A : I am very passionate about watching movies and listening to music. This passion later became my business.

Q : As a family man ?
A : Yes. I am a family person. I have a wife and 2 kids.

Q : As a friend ?
A : No. I don’t have many friends.

Q : Are you a music or a movie buff? Which are your favorite Movies / Songs?
A : GUIDE & LAMHE are my all time favorite movies and the songs of these movies are my most cherished songs.

Q : If it was not for TIPS where would you have been??
A : I would probably have been the owner of some Music retail outlet like PlanetM. From the beginning music and movies has been in my blood. In between our business had a downfall, and a lot of people suggested that I get into the construction business. But I was totally averse to it. I am very passionate about music and movies.
My business is a little bit of a ‘gut-feel business’, which is what I enjoy the most.
This is where I was & I am here to stay.

Thank you Sir. It’s been a pleasure talking to you.