Director/ Producer Rama.Narayanan was one of the most popular producers of yesteryears, known for making movies that reap huge profits with minimal investments. His company itself was running with the motive of a small investment and a huge return.
However, post his death, his heirs murali Ramasamy and hema Rukmani took over his Thenandal studios limited and decided to invest big money on big projects and the first of these biggies happened to be vijay starrer Mersal and sundar C directorial Sangamitra.
While Sangamitra was initially projected as a 250 crore budgeted movie which will surpass Baahubali, Atlee directorial Mersal was started as a medium budget movie, but the maker spent a bomb on the movie, and with the budget overshoot, despite free publicity given by BJP's H.raja and Tamilisai, Mersal incurred huge losses to the tune of more than 50 crores, and became a disastrous outing for them and turned out to be a lesson on right investment on the right projects.
Following the huge losses, Sangamitra was never started at all, and even other films they had acquired to distribute are also dropped. Recently, they've let go of jayam ravi starrer space flick Tik Tik Tik which they had acquired, and now their production venture Rettakombu with siddharth and GV Prakash and M.Rajesh's next with Santhanam, as well as the Dhanush - karthik Subbaraj movie too have been reported to be dropped by the production house. Following these dismal performances, the sources close to the producers are advising them to return to Rama.Narayanan brand small budget movies.
