Do celebs make smart entrepreneurs? Many turn duds, some do it to save tax

Why do celebrities turn to entrepreneurship? In the old days an "after-career" was the big driver. But today most of them launch enterprises at their peak. Perhaps because it is an easy tax write-off

The father of a reasonably famous actress called a couple of years ago. The celebrity wanted to launch her own line of jewellery. She would curate the collection, and be its brand ambassador too, we were told. Good, we said. Help us launch the jewellery brand, requested the father. Sure, but does the young lady know enough about jewellery, we asked. What about the actual product designing, production, quality control, distribution, merchandising, pricing …? Oh, we will hire some staff, responded the father, rather dismissively. Will she have time to devote to the venture, we asked. Don’t worry, jewellery is her passion — she will find the time. But why does she want to be in this business, we persisted in asking. Well, she has endorsed various jewellery brands in the past, but feels that those brands built their equity cashing in on hers. So what’s wrong with that, we questioned. She might as well directly pocket the upside, emphasised the dad, more than a bit exasperated by now.

 

We declined the assignment. The jewellery line was actually launched a few months later, with quite a bit of fanfare and much media hype. But a few months later, the brand, if you could call it that, was dead and forgotten.

 

Many celebrities have over the years ventured into the world of business. Some successfully, others perhaps not. Shah Rukh Khan’s investment in Kolkata Knight Riders (KKR) and Red Chillies Entertainment has taken his personal net worth to ₹12,490 crore, according to the Hurun Rich List, making him India’s richest celebrity. SRK’s wife, Gauri Khan, independently said to be worth ₹600 crore, is a shrewd and successful entrepreneur in her own right. She launched Gauri Khan Designs in 2012 and has handled marquee clients like Mukesh Ambani and Alia Bhatt. In 2024, she opened her first restaurant, Torii, in Bandra, Mumbai, focusing on Pan-Asian cuisine. Plus, she has interests in Innov8, a co-working space provider; Matter, an electric vehicle manufacturer; Subko, a specialty coffee roaster; Pandorum, a biotechnology firm; and Olyv and Chupps — two financial and lifestyle brands. Juhi Chawla, too, boasts wealth of ₹7,790 crore, driven by her shareholding in KKR.

 

Other celebrities are not far behind. Deepika Padukone is a key investor and brand ambassador for Epigamia, a premium yoghurt. She has invested in companies like Furlenco, Blu Smart and Mokobara, and is also the co-founder of 82°E and All About You. She is also invested in companies like Nua (a women’s wellness brand) and Super Tails (a pet care startup).

 

Kriti Sanon turned entrepreneur in 2023 with beauty brand, Hyphen. She now has her own production house Blue Butterfly Films, besides her own clothing line, Ms Taken, and a fitness company, The Tribe. Hyphen reportedly achieved a remarkable ₹400 crore in annual recurring revenue within just two years of its launch in July 2023, with a reported 60 per cent repeat customer rate and 4 million users. Impressive? 

 

Hrithik Roshan co-founded HRX, a fitness and lifestyle brand in 2013 and has also invested in Cure.fit. Rhea Chakraborty turned entrepreneur with her fashion label Chapter 2. Shraddha Kapoor invested in MyGlamm in 2021, a beauty and personal care brand; co-founded jewellery company Palmonas; then invested in Bella Casa (a luxury furnishing company) and Shunya (beverage brand).  Alia Bhatt launched a sustainable maternity and children’s clothing brand, Ed-mama, in which Reliance acquired a major stake. Katrina Kaif launched Kay Beauty on the principle “MakeupThatKares”. Twinkle Khanna too owns The White Window, a home decor and furniture brand in Mumbai. There are more.

 

But there have been failures aplenty. Sachin Tendulkar’s restaurants and Amitabh Bachchan’s ABCL bombed. Sonam Kapoor’s Rheson, Anushka Sharma’s Nush, Shahid Kapoor’s Skult, Yuvraj Singh’s YouWeCan, Virat Kohli’s Wrogn — all got good openings but then faded away. Reports on Ms Padukone’s All About You have been pretty lukewarm too. Her Blu Smart investment went belly-up. Ms Sanon’s Hyphen revenues are said to be significantly overstated. But failure has not bedimmed the entrepreneurial enthusiasm of celebrities —Honey Singh’s Yo-Yo watches, Sanya Malhotra’s Bree Matcha, ARKS by Ranbir Kapoor, Bad Boy Pizza by Badshah, Blondie by Shilpa Shetty — all launched last year.  

 

Why do celebrities turn to entrepreneurship? In the old days an “after-career” was the big driver. But today most of them launch enterprises at their peak. Perhaps because they are flush with funds. Perhaps because fawning friends play up their fame and fandom. Perhaps because a lot many star-struck businessmen offer them “lucrative” deals that eventually turn into duds. Perhaps because it is an easy tax write-off. Perhaps because it looks all so easy. Till it fails.

 

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The author is chairman of Rediffusion