Bollywood, IPL and chit funds

Well known bollywood actors like Shah Rukh Khan, Soha Ali Khan, Mithun Chakrabarty all receive sums of money for endorsing these unknown companies

The “chit fund” companies, as it is loosely called, is all-pervasive; some of the biggest stars in the country, have endorsed the brands.

It is not only the Tollywood stars that are just associated with these companies but, there is a touch of Bollywood, as well. Cricketing extravaganza, IPL, is also on board.

Shahrukh Khan, one of the biggest stars in the country, and co-owner of IPL franchise Kolkata Knight Riders, has got Rose Valley as lead sponsor. Since IPL also has got an array of international cricketers, the brand gets to taste high waves riding on such players.

KKR has got a two-year deal with Rose Valley at an annual sponsorship charge of Rs 5.5 crore. If all goes well, chances are that the title sponsorship deal will be renewed for another couple of years.

KKR MD Venky Mysore did not respond to text messages sent by Business Standard.

Khan, on the other hand, is also the brand ambassador of Prayag Film City, a project by the Prayag Group. The Prayag Group is so active with its branding initiatives that Khan keeps popping up on television channels every now and then.

Actress Soha Ali Khan and her mother Sharmila Tagore now endorse a biscuit brand promoted by Prayag Group.   

Harish Bijoor, chief executive officer of Harish Bijoor Consultants, said the prime motive of such chit fund companies is to get credibility by bringing stars with them. “Stars add to the credibility of a brand and give boost to unknown companies such as the chit fund companies. Stars now must do the audit before signing on these brands because when a company like Saradha gets busted, it is the brand equity of stars which also gets dented,” he said.    

According to Sudipta Sen’s 18-page letter to the Central Bureau of Investigation, Bollywood's disco star Mithun Chakrabarty used to get Rs 20 lakh a month for promotional activities of Saradha Group.

Former actress and current TMC MP Shatabdi Ray was also on board of stars for Saradha. The new lot of young actor and actresses are mostly working in the films funded by chit fund entities.

That’s not surprising given the way chit fund companies have penetrated Tollywood, Bengal’s film industry. Around 30 per cent of the movies are produced by these companies.