DEAL STREET

How smaller art galleries have slashed their rates to survive in a competitive market

How smaller art galleries have slashed their rates to survive in a competitive market
Yes,the art market is picking up. But while auction house sales are looking up,smaller galleries and dealers are struggling. The lean sales hardly pay the exorbitant rents and at this point,one just has to sell works of art at cut prices.

There are bargains to be sniffed out at Lado Sarai,Delhis growing art hub,where galleries are competing for the small pool of buyers. Though it is a perfectly legitimate practice to be slashing rates,it is not something that galleries acknowledge. Accompanied by a French man posing as a buyer,our reporter trawled the art street looking for bargains and cut prices.

A group exhibition at Gallery Threshold is showcasing artist Prajakta Potniss works alongside others like Yashwant Deshmukh. The asking price for a 30 x 41.5 inch acrylic and dry pastel on paper by Potnis is Rs 1.7 lakh. Down the road,a dealer from a relatively newer gallery,Ragini,has another Potnis work in the same medium,measuring 42 x 34 inches,for Rs 1.5 lakh. The owner of Threshold stood by her prices and informed our team that the artist was unwilling to lower her rates. But gallery Ragini was willing to offer discounts up to 30 per cent on that price if we made a bulk order. In Mumbai,Sakshi Art Gallery has been representing Riyas Komu since 2002. Its current quote for a Komu canvas measuring 4 x 5 feet 48 x 60 inches is Rs 15 lakh,while in Delhi,Ragini is offering a bigger Komu canvas 60.5 x 78 inches at Rs 16 lakh.

For artist TV Santosh,a similar tale unfolds. The Guild Art Gallery that is representing Santosh says that currently there is a dearth of works by the artist in circulation. The usual rate for a Santosh watercolour on paper is between Rs 4 and Rs 5 lakh. These prices depend on the quality of the work. One may get a cheaper work,but one has to check on its quality and authenticity,8221; says Shalini of Guild. Gallery Ragini is currently offering an untitled 22 x 30 inches watercolour on paper by Santosh for Rs 1.4 lakh. The other work,a charcoal on paper of 29.5 x 22 inches,is priced at Rs 2.3 lakh. The price distinction in all cases is clear. The smaller gallery is willing to cut its rates. And this is not a practice restricted to one gallery.

Anupa Mehtas two-year-old gallery,The Loft in Mumbai,recently put up a small paper work of an FN Souza for a mere Rs 1.5 lakh for what was described as a charity event. Souza is one of the most expensive Indian artists and even a small work by him costs no less than Rs 5 lakh. We offer fair pricing and great values. Our revenues come from patrons and sponsors as also,via secondary sales. This helps us support residencies and curatorial projects. Our sales support these projects. We are not interested in making a quick buck or slashing prices, Mehta says. She admits,however,that it is very difficult to generate footfall. More than buyers,I would ask,Where have all the viewers gone? It doesnt cost to view!8221;

Geetha Mehra of Sakshi Art Gallery,who has seen the Indian market in its various stages of boom and bust,agrees this is not uncommon. There has been a price correction,everybody just has to get used to it, she says. Collectors must understand that they may have to sell their acquisitions at a rate lower than what they bought at. The thing to ponder here is,would you rather have liquidity than a dead inventory? asks Mehra.

A mid-level collector like Gopal Mirchandani has some prize works of Bhupen Khakhar and Souza,acquired at a time when the market had not reached fever pitch. Now during the slump,the collector says he is very tempted by the prices. Honestly,I would love to pick up a good quality work at half pricebut it must be authentic and have all the papers of provenance in place. Over the years,I have become more discerning because quality works tend to still remain with good galleries, says the Mumbai-based Mirchandani. Ultimately,vigilance is the key and a cheap Souza or Raza requires due diligence in paperwork.

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On the other end of the spectrum,big collectors like Kiran and Shiv Nadar are not inclined to buy from small dealers even if the prices are mouth-wateringly low. Most of my works,whether they are Moderns like Souza,Ram Kumar or Tyeb Mehta or Contemporaries like Subodh Gupta,Shahzia Sikander or Raqib Shaw,are bought from large reputed galleries or auctions. I have a terrible compulsion to bid very high at auctionsone that I must keep in check given that now I have a museum to run, says Nadar,whose Noida based Kiran Nadar Museum of Art KNMA showcases the cream of their collection.
Prices go up and down. It can happen in any asset class. I would not get overly worried if a few small galleries are offering collectors more affordable works,because they would not have an unlimited stock of these good deals and occurrences of under-pricing are few and far between, says Mehra.
With inputs from Alia Allana