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29 March 2024

Realty dream is not an act

Published
By Abdulla Mahmood and Keith J Fernandez

His films are already being studied at business schools in India. Now Bollywood star Shah Rukh Khan's career could well be next.

In the 20 years since the best romantic lead first started out on Indian television, he has not just made it to the top of the world's biggest film industry, he has also now masterfully positioned himself as a brand name that attracts a loyal customer base.

As a romantic lead, Khan's top ten movies have generated more than Rs110 billion (Dh8bn) since his 1992 debut. Today, a Shah Rukh Khan film is expected to generate business of more than Rs1bn worldwide. Thirty per cent of that revenue is generated outside India, particularly the UK and US, where his movies debut in the top ten.

But along with the histrionic skills responsible for these numbers, King Khan, as he is popularly called, also has considerable business acumen. From film production to sports management, he has turned his hand successfully to ventures far outside his core competence of acting.

His film production house, Red Chillies Entertainment, employs 150 people in Mumbai and has all-time box-office blockbusters such as Main Hoon Na and Om Shanti Om to its credit. Khan is also the owner of Kolkata Knight Riders cricket team, part of the multi-billion rupee annual Indian Premier League (IPL) Twenty20 cricket extravaganza. Significantly, the team was the only one to make a profit – Rs140 million – in its debut season last year.

And from selling romance and cricket, he now hopes to move to apartments. The 43-year-old actor is all set to break new ground as entrepreneur in the UAE, with the announcement this week of the Dh8bn Shah Rukh Khan Boulevard in Ras Al Khaimah. The beachfront project will be developed in a tie-up with UAE property heavyweight TSA Group on RAK's Dana Island, which is promoted by master developer Rakeen, the property development arm of the RAK Government. The development offers 12 residential towers configured into studios, one- and two-bedroom apartments and townhouses.

"I sell dreams in my films," Khan said in an exclusive interview with Emirates Business. "I want to extend my personal idea of selling dreams into realty with this project."

He said his involvement with the project went beyond marketing tie-ups. "This project is not an endorsement like my previous associations with brands such as Tag Heuer, Pepsi and Hyundai, where they needed a popular face to sell. It's not just about having a photograph or a signature on the wall.

"Mine won't just be the face on the biggest posters at Shah Rukh Khan Boulevard, nor will I only come around to hand over the keys to the first owners. Obviously I'll do all that, but I'm involved with this project right from scratch."

Like Hollywood actor-turned-architect Brad Pitt, he admited to being fascinated by landscapes and architecture, especially tall buildings. "I admire the skylines of New York and places like Dubai. I am a fan of the concrete jungle," said the father-of-two.

But his passion for real estate stems from a term in life's school of hard knocks. Born to a middle-class family, Khan lost both his parents while still a young man, and was consequently driven to acquire a house for himself, which he finally did in the late 1990s.

"I have a fetish for houses and was passionately involved in designing my own house in Mumbai. Becoming a father has forced me to think beyond romance, and I wanted to extend that concept to others."

As always with Khan, passion and creativity go hand in hand with a keen awareness of commercial possibilities. "It's a good time to venture into the UAE and Ras Al Khaimah is virgin territory," he says. "The developers came up to me with this idea and presented the entire plan and asked me to be involved with the project right from the conceptual stage.

"We'll build houses for people. They will have to make it their home with the spaces and amenities that we will provide. I've brainstormed with the designers and I'm confident that we'll build some nice homes."

TSA President Shafi Toffic says Khan is just like any other business partner. "He has taken over the burden of creatively designing the entire project with special attention to the designs of the houses. For the last few weeks he has been working on the overall concept, trying to put together everything on paper."

Despite being called a full partner by Toffic, Khan admits to making no investment in the project that bears his name. "I have not invested any money in the project but I have invested a lot of creativity and passion in it. I don't have that kind of money and I don't know what Dh8bn looks like. But I've reached the stage where I can invest my brand equity," he says.

In the worst case scenario, then, he may lose some credibility, but his bank balance will not be negatively affected. "Yes, I will be paid for my services, but I am also taking a chance here. If everything goes fine; there is good money at stake."

Scheduled for completion in 2012, the project is being designed by Tony Ashai, President of the Los Angeles-based Ashai Design Corporation. Ashai said the three million sq ft project will be a mixed-use development with underwater discotheque and lounge bars, a public square on the beach and an open-air cinema. Two of the project's 12 towers, named Shah Rukh Khan Towers, will be sold at a 10 per cent premium, Ashai says.

"Each floor in these towers will have only one apartment, and each apartment will have its own separate lift. This will provide total privacy as no one will know which unit their neighbours live in."

Fans in the UAE can look forward to seeing more of their idol, Khan, here. He will not only own an apartment in Ras Al Khaimah, but is readying to move into his villa on The Palm Jumeirah, which he says his wife Gauri is currently decorating. "I'm looking forward to bringing my family here on a holiday."

And on the film business front, Khan expects Red Chillies to open a distribution office in the UAE. Plans for an office in Dubai Media City fell through, he says, but he has had talks both with Rakeen and Dubai developer Nakheel.

So is property Khan's retirement plan, then, as some wags have suggested? "I've said I have an expiry date, but in my heart I know I will never retire. I want to work as long as possible in films, and if possible, even longer than Amitabh Bachchan," he said. Bachchan, Bollywood's senior statesman, turns 66 today. Despite his advancing years, his shooting schedule has not slowed down and he has enough projects on his plate to rival younger stars.

But Khan's success lies in his multifarious activities and his astute business savvy. His philosophy, he says, is not to think about a profit at the end of the business equation. "I can flaunt my philosophy based on my success but truly I believe goodness begets goodness. Whenever I start a venture, I aim simply to break-even. So whatever excess money comes through a venture is a bonus."

And with his biggest strength lying in a global fan base estimated at more than three billion, there are plenty of punters lining up to invest in his brand.

 

Competition at home

Even as he expands abroad, Shah Rukh Khan faces competition at home.

Despite ruling the box office since his 1992 hit Deewana, his place at the top is now being threatened by Akshay Kumar, star of this year's mega-hit, Singh is Kinng. While Kumar has been around as long as Khan, he has sudddenly become the industry's first choice – particularly since he made the transition from action hero to comic star with six back-to-back hits, including Namastey London and Heyy Babyy. Singh Is Kinng even broke Om Shanti Om's record for highest opening week takings, and now insiders believe if Khan fails with his next releases, Rab Ne Bana Di Jodi and Biloo Barber, Kumar may well be crowned king.

Khan, who has seen out threats to his position from Aamir Khan, Salman Khan and Hrithik Roshan, remains unfazed: "For the last couple of decades I've been threatened by everyone but I stick to my job. I am like a horse in a race that neither sees left nor right but just looks straight while running ahead. I like my own race and I have my own space," he said.