Indians bought over $250 mn of art from us: Sotheby's India MD Bhatia

The company's aggregate auction sales reached $4.6 billion, up 8 per cent from 2016, Says Bhatia

In its maiden voyage to India, Sotheby’s — the world’s oldest auction house dating back to 1744 — will unveil the Durga Mahishasur Mardini (1993), a seminal work of artist Tyeb Mehta, in Mumbai in December. A passionate art collector himself, Gaurav Bhatia, managing director at Sotheby’s India, tells Abhishek Waghmare, that he wants to increase the ‘passion percentage’ towards art in India. Edited excerpts:

With what expectations do you plan to enter India? 

In recent years, Sotheby’s has witnessed both the ever-growing presence of Indian collectors in our global auctions, and the development of a vibrant domestic Indian art market. Given these positive signs, and rising economic growth, we feel it is the right time to expand and bring our auctions directly to the doorstep of our many collectors.

Which are the biggest markets for art auction in the world? Has the situation changed in the past few years in terms of leadership, sales volumes?

In 2017, at Sotheby’s, both auction sales and private sales were up worldwide. Aggregate auction sales reached $4.6 billion, up 8 per cent from 2016, while private sales grew 28 per cent to $744.6 million — a four-year high. This growth was across the board: In all key regions, the US, London, Europe and Asia, and in all key categories, contemporary art, impressionist art and jewels.  At present, our largest auction sales are in the categories of contemporary art ($1.43 billion), impressionist & modern art ($1.04 billion) and jewellery ($552.2 million). 

How do you see the Indian footprint increasing in the field of art? And how does Sotheby’s plan to cater to it? 

In our global auctions over the past five years, Indian participants have doubled, buyers have increased 75 per cent, and Indian clients have spent over $250 million.  

Just last month in March, the volume of our New York modern and contemporary South Asian sale series total was over $15.5 million, our highest for three years (since 2015). It had a sell-through rate of over 90 per cent, meaning, 90 per cent of the art pieces were sold. Raja 

Ravi Varma’s ‘Untitled (Tilottama)’ soared over its estimate $400,000-600,000, to realise $795,000. 

How has India traditionally savoured art? 

India has a rich cultural history of art, architecture, textiles and jewellery among other categories. To tell you an interesting snippet: As early as 1937, an Indian Maharaja bought Marie Antoinette’s diamond necklace at Sotheby’s London when he was visiting for King George VI’s coronation.  The Indian art story has never been more vibrant.  The sentiment in the art market is positive and Indian art is seeing a sustainable resurgence. With private wealth continually increasing, newer collectors are coming into the market. The Biennales, Art Fairs and private museums are adding a wonderful flavour, shaping the collector’s mind and give them incredible exposure. 

How is technology helping Sotheby’s expand its footprint globally? 

We held our first online-only South Asian art sale, A Lyrical Line: Paintings and Drawings by Francis Newton Souza in March 2017. The sale saw participation from over 11 countries with 22 per cent of buyers based in India and achieved a strong sell-through rate of 83 per cent.

Digital innovations such as our Sotheby’s iPhone app and Apple TV app hosts Sotheby’s content, as well as our digital catalogues have made Sotheby’s more democratic in connecting content to commerce. 

It hardly matters any more if the auction is held in London or New York or Mumbai.  And as a topping on a pizza, we have over 1.4 million followers on various social media! 

How is the tax structure for art in major countries and in India? Does GST come into play in art auctions as well?

GST (Goods and Services Tax) is taxed on art at the standard rate of 12 per cent across the board. Interestingly it hasn’t impacted Indian buying. Clients do realise that rare works at Sotheby’s are once-in-a-lifetime opportunities.  However countries such as the UK have taxes to the tune of 5 per cent and the US at 6-8 per cent to encourage collectors.  I hope we get there one day in India too. 

That will be a game-changer. After all art is not a consumable good. Art to me is an emotional, creative, intellectual property, created indigenously and uniquely by an artist.  

Tell us about the inaugural auction and the Tyeb Mehta.

‘Boundless: Mumbai’’ will include not only important works of South Asian art, but also a broad variety of pieces from other categories too, such as photography and design, carefully chosen for collectors in India.  By definition, the limits of the sale are ‘Boundless’.   

The sale is led by one of Modernist master Tyeb Mehta’s most important work, ‘Durga Mahishasura Mardini’. This seminal painting commissioned directly from the artist in 1993 will be seen for the very first time. 

The painting celebrates hope and renewal instilled in Indian mythology and reconnects with Indian values. The allusion to the colours of the Indian flag makes it a brilliant and powerful ode to the spirit of the country. This painting is a prelude to the artists iconic “Celebrations” and “Mahishasura” series, making it the artist’s most significant and rare work.  The gravitas and rarity of this propitious work is the perfect beginning to Sotheby’s inaugural sale in Mumbai in December.