Art is money

There is a never-before upswing in the contemporary Indian art mart with investors turning from shares and gold to paintings. Vimla Patil explores the dynamics of the big business

M.F. Husain sold 125 canvases for a whopping Rs.100 crore to a business tycoon. An auction by Christie’s in New York fetched Rs. one crore ($2,20,000) for a large S.H. Raza painting. A small B. Prabha canvas sold for Rs.12.5 lakh. Auctioneers, gallery owners and art dealers are proving that Indian contemporary art is probably one of the best investments today.

At 26, few people are expected to have farsightedness of such a high order. Damini Kapoor Chintamani, finance professional of Mumbai, has proved that absolutely novel concepts in making big money often succeed in a spectacular manner. Damini has successfully brokered the biggest ever deal in art selling towards the end of last year. "A friend told me that art could become one of the best investments of the future. I began to look at the work of leading painters with new interest and found her to be right.

"I had always admired a painting of Anjolie Ela Menon hanging on the wall of my family home. But I had never paid much heed to it. After my friend’s advice, I weighed the rising price of this painting against shares and money market investments and came to the conclusion that the painting had appreciated manifold in comparison with the latter. My research proved that art would remain a high-yield investment even when other areas of money management collapse because of catastrophes—manmade or natural."

Husain’s paintings are considered blue chip holdings S.H. Raza Anjolie Ela Menon Paintings by Menon (above) and Raza (below)

Damini, contacted Mehar Srivastava, son of Kolkata industrialist Guru Swarup Srivastava, a rich businessman with interests in shipping, exports and construction. Mehar conducted his own research and came independently to the same conclusion." Husain’s son Owais was contacted and a meeting arranged between Mehar and Husain in Delhi. The biggest deal in the contemporary art business was outlined. Husain had 25 paintings ready– among them was one of Gandhiji and one of Charlie Chaplin. These were sent to Mehar’s house. The remaining paintings will be completed within the stipulated time and given to the Srivastava family for a payment of Rs.100 crore. The total number of paintings is 125. The art world is extremely excited about this deal because it means that Indian contemporary art will appreciate internationally. Art buyers all over the world will look at Indian art as a bankable investment.

On the heels of this exhilarating news came the report that at a September 2004 auction in New York, Christie’s sold a large painting of Paris-based painter S.H. Raza for Rs 1 crore ($2,20,000) and even a small B. Prabha went for Rs.12.5 lakh.

With business tycoons, corporates, Bollywood stars, NRI moneybags and even upper middle class hopefuls rushing in to become major patrons of art, the connection between art and finance is now well established. No more are artists considered to be weird rebels of society with wild hair and unkempt clothes. They are rich, style icons and celebrities and as media and business-savvy as any manufacturer of consumer goods. They are as acquisitive of property and collectibles as any successful professional. Their paintings and sculptures can now command top prices in the international markets and feature in auctions conducted by world-renowned auctioneers like Sotheby’s or Christie’s. Art has become a business and therefore investing in it has become a fashionable trend among those who have dispensable funds.

Indian contemporary art buying has acquired a tidal popularity among Indians the world over in the last decade. Anyone with big or new money, is rushing to auctions or art galleries and to buy paintings, sincerely hoping that they would appreciate in time and make a fortune for the buyer. Says one art gallery owner, "Rich middle class people, who had never heard any artist’s name earlier, walk into galleries today, put down their bundles of notes and demand to buy art as ‘an investment’. Most of them go by the market buzz that certain painters are ‘good buys’ or consult an art expert. Exclusive previews send corporate officials scuttling to art shows to buy investment pieces for their companies or their bosses. With powerful business houses like Tatas, RPG, Modis, Birlas, Ambanis, several banks, public institutions like TIFR, hotel groups and media houses owning huge art collections, ‘art investor’ has become a term of common Indian parlance. Naturally, Indian artists have now turned their hopeful eyes towards international markets."

There are now almost 10,000 Indian painters in the market. Only some among them have earned an international name, mainly because of the number of years they have spent working steadfastly and the collaboration of older galleries. These chosen few fetch high prices in the sale and resale market. Other artists, new or mid-level, work hard to gain popularity and sell their paintings at medium prices. Art collectors know the promising artists and are willing to bank their money on their work.

As on many controversial topics, here too we have contrary views from various concerned segments. Shanti Chopra, a prominent art dealer and owner of Art Musings, feels that top painters have a huge investment value. "Painters like Bendre produced just eight canvases a year. These are now reselling for phenomenal prices. Husain’s paintings have skyrocketed this year and raised the prices of all Indian paintings. B. Prabha’s work is selling like hot cakes. But I would still say that most people do not buy art for resale. They buy it for status and for their own satisfaction. They collect art like they would collect rare crystal or China."

Jimmy Mehta, an inveterate collector with his own personal art gallery in central Mumbai, says emphatically that art is an excellent investment. He says, "Old masters like Jamini Roy, Ara, or Ravi Varma are selling today at museum prices. Today’s big names have become huge investments. Other upcoming artists will also appreciate. There are very few instant investments in life. Art is not sold in the share bazaar. Its value grows steadily. However, buying art is not just a money business. One has to live with a painting for years and look at it every day. So out of 10 pieces created by even an artist like Husain, only one may suit you. Only one may have a touch of genius."

But the art market too has its whimsies. Sometimes, one is lucky to buy the right artist at the right time. Top artists are too expensive for new buyers in the field. They can only afford mid or beginner-level art. Unprecedented business deals or auctions – like those reported in recent months – create an instant demand for the work of most Indian artists across the board. Such news encourages more buyers to become art-collectors, because an art buyer not only has the pleasure of owning a painting with a brand name attached to it but also the hope that it may result in neat profits later on.

The recent Filmfare Awards nite brought the spotlight on the sponsors, the Swarup group of industries. The camera repeatedly focused on M.F. Husain and the owner Guru Swarup who paid an astronomical sum for his paintings.

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