‘The correction in art prices was long overdue’

How is your art fund doing during this economic crisis? Are investors pulling out ?
The Osian’s Art Fund is progressing well as per its ‘Redemption Guidelines’,with closure and repayment to the Unit Holders by 10th November 2009. Given the significant fall in the art market’s prices,liquidity and confidence during the past 12 to 15 months,the returns are about 5% p.a. (post-tax),though lower than 2006 expectations. It’s a fine performance. Post September 2008 all expectations have been re-calibrated,but in hindsight,the fund was established in the peak (2006) and exited at the low point (2009),but that is part of the process.

You say Indian and international buyers are parallel but the prevailing opinion is that international buyers first bought Indian art for over Rs 1 crore. Are Indian buyers harder to hook?
Not at all,you have absolutely the wrong understanding. The Indian art market grew in the late 1990s and early 2000s when resident Indians began buying modern and contemporary art. The international interest is recent and relatively superficial fuelled by a few international collectors who grew dissatisfied with European and Asian options. It’s a fashionable bandwagon. Serious contribution to the infrastructure of the Indian art world by international collectors who started post-2000 is yet to come.

Osian’s has concentrated on history and rarity,when there was demand for Contemporary art in the market. The focus has shifted back to Modern and Antiquarian art—do you feel vindicated?
Osian’s has maintained that historical significance and rarity of an artwork is most significant. It’s always easier to push living artists’ markets when there are vested interests in promoting them. This has led to the collapse of the contemporary market. People are recognising such hanky-panky. Once the mix between ancient,medieval,modern and contemporary arts deepens collectors,the gain will be greater.

But why would a collector buy an antiquity in white at an auction when he can get it cheaper from the black market?
To hide and pilfer is a habit of the past — or soon will be. Every genuine collector wants to buy openly with pride and confidence and display their works in homes and museums. Transparency allows others to participate in your passion and play for art. Death of the black economy and smuggling is now inevitable since one can make more legitimately,as seen in the modern art market.

What makes Osian’s film memorabilia posters more valuable than those available at a flea market? Besides restoration,acid-free mount and framing costs,what account for posters like Mughal-e-Azam that command lakhs at auctions?
Most importantly these film posters are the first and original image as visualized by the Producer/Director and/or Art Director. Over 95 to 99% of the posters available in flea markets and small book shops are re-release later editions which have minimal financial value. Further,the ‘Authenticity and Provenance Certificate’ from Osian’s gives it credibility and the homework and due diligence is in place. Besides an auction house has a greater access and reach to a buyer base which achieves a better price for the seller.

While Mumbai is the undisputed hub of cinema,there are many regional film empires like in all of South India,Bengal and the North East. Does Osian’s ever intend to collect/display art from regional cinema?
We have a relatively large collection of Bengali,Gujarati and Marathi film publicity material and memorabilia and a slightly smaller base of films from South India. Our Collection is building up. Further,we have always given greatest importance to the aesthetics,design and scarcity of the poster rather than the region or the film. Osian’s Polish,French and Czechoslovakian posters of Indian films are also very rare.