Thus far in 2005, Bollywood's biggest hit has been Bunty aur Babli, which grossed Rs.50.59 crore. However that isn't the biggest blockbuster of the year. That distinction will have to go to a Tamil motion picture called Chandramuki starring (who else) Rajanikanth that has thus far grossed around Rs.60 crore.

Four years ago, everyone thought that the Kollywood (as the industry is widely known) story was over: the number of releases had dwindled from around 130 to less than 80; theatres were forced to close down; and rampant video piracy and a steep entertainment tax of 35% were clearly taking their toll. Over the past year-and-a half, though, the Tamil Nadu government has started prosecuting video pirates under the Goondas Act, and reduced entertainment tax rates to around 10%.

This year has been some eight hits out of 70 releases and, more significantly, the industry seems on its way to becoming organized (even corporatised). "while there have always professionally run production houses like AVM, Kavithalaya and Oscar Films, there are at least 15 others that are becoming more organized in the way they do their business," says V.Natarajan, Chairman, Pyramid Saimira Theatre, himself a producer. That should help the cause of an industry that, according to some Bollywood execs, has always been at the forefront of film making in India in terms of technical virtuosity, and its willingness to experiment with new and alternative themes.

The story of Telugu cinema is quite similar to that of Tamil's. The number of releases has grown to over 100 a year now, as compared to around 70 four years ago. Of this number, 15% are hits and 10% manage to more than recover their costs. Speed and professionalism seem to be this year's themes for the industry; it takes between 3 and 4 months to complete a project as compared to around12 months in Bollywood.

Budgets for both Tamil and Telugu films have soared over the years, with some costing even as much as Rs 30 crore. Much of that has to do with the fact that markets for both exist outside India, in the US, Europe, west and south-East Asia, even South Africa. Some estimates say revenues from these markets account for as much as 15-20% of the total takings of some movies.

Considering that both the Tamil and Telugu film industries have smaller markets than Bollywood, these numbers are definitely impressive. It may be limited by the audience but the Tamil and to a lesser extent the Telugu film industry are far ahead of Bollywood.