Prominent Telugu film producer Naga Vamsi has publicly addressed a challenging phase in his career, citing significant financial setbacks from two major projects in 2025. In a frank conversation with Great Andhra, the head of Sithara Entertainments admitted to making costly mistakes and arrogant decisions that led to a negative balance sheet for the year.
A Year of Setbacks and Introspection
Naga Vamsi, known for backing commercial hits like Ala Vaikunthapurramuloo, Jersey, and Bheemla Nayak, described 2025 as a bad year. He took personal responsibility for the situation, stating he is now in a position where he cannot afford any further missteps. "I made certain mistakes, and I cannot blame anyone else for them. I made some arrogant decisions," the producer confessed. He emphasized his current risk-averse stance, both personally and professionally.
Clarifying the War 2 Financial Controversy
Addressing widespread speculation on social media, particularly regarding the Hrithik Roshan-led War 2 which he distributed in the Telugu states, Vamsi provided a detailed financial breakdown. He clarified that while he suffered losses, the situation was not as dire as rumored.
He purchased the Telugu rights for War 2 for Rs 68 crore, with an additional Rs 12 crore paid as GST, bringing his total investment to Rs 80 crore. From the theatrical run, he received shares amounting to Rs 35-40 crore. Crucially, he revealed that Yash Raj Films (YRF) proactively returned Rs 18 crore to him after the film's performance. Combined with a Rs 12 crore GST refund, his net loss was mitigated, though still substantial.
Vamsi strongly contested the notion that a distributor's image is tarnished by a film's failure. "How am I responsible for the failure of War 2? How does a distributor's image get ruined if a film fails?" he questioned, drawing a comparison to other distributors who have faced flops without lasting reputational damage.
Mentorship and a Shift in Strategy
The producer also spoke about the guidance from his uncle and mentor, S Radha Krishna, owner of the parent company Haarika & Haasini Creations. He noted that his uncle reacts with logic, not disappointment, to failures. The key lesson from his uncle's perspective is a strategic pivot towards smaller-budget films.
"His logic is that if we make three small-budget films, at least two of them will definitely work. Then why should we desperately chase big-budget films?" Vamsi explained, outlining a potential new direction for his banner to ensure sustainability.
The Kingdom Debacle and Moving Forward
While he defended his role in War 2, Vamsi fully accepted the blame for the failure of the big-ticket film Kingdom, in which he was directly involved as a producer. Reports indicate the film was made on a budget of Rs 130 crore but only managed to earn Rs 82 crore worldwide, creating a massive financial hole.
Concluding his reflections, Naga Vamsi acknowledged the current negative balance sheet but framed it as a part of the business cycle. "All I can do now is work towards turning it positive. This is a process—it's business," he stated, signaling his intent to recover from the setbacks of 2025 through more calculated decisions in the future.
