Not many know that Akkineni Nageswara Rao founded Annapurna Studios (named after his wife) in the mid-1970s on about 22 acres of government-allotted land in Banjara Hills following an unexpected rift with Sarathi Studios.
In 1974, ANR's Devadasu (originally released in 1953) was re-released on the same day as the first release of Krishna's Devadasu. Krishna's film tanked at the box office and ANR's film went on to score a 100-day run at many centres. Since Krishna's film was backed by Sarathi Studios, it was pissed off with ANR. So, when a new ANR film was to be shot at Sarathi Studios, the studio denied him permission citing labour issues. This shocked and angered ANR.
It's believed that ANR immediately sought the required approvals from authorities to set up a studio of his own. A small building was erected in under four months. ANR was also frustrated with difficulties that were thrown at actors like Anjali Devi who were close to him. He concluded that he needed his own studio.
