For stability and secure the future of his family
Mithun Chakraborty’s career dwindled after 1989. Apart from Trinetra, Cheetah, Dalaal, Jallad, Ravan Raj which were successes and a few average grossers he gave many dozen flops in between. Action heroes were being replaced by romantic and family heroes. And action disco dance craze faded out. So economically, Mithun made this decision to shift to Ooty where he established his Monarchy Hotel after securing a loan of 10 crores from the government.
He had earlier bought land from his producer friend in Ooty when he was shooting there in late 80’s.
To pay back the loan he created a new model- Ooty Film Factory. He asked film producers to come to Ooty to shoot his films. The whole cast and crew stayed at Monarch, shot in the nearby locations, with almost the same stories, same pattern of 4 songs, 5 fights, one item number, 3 comedy scenes etc. These films were made at almost no time shooting 3–4 films at the same time to save costs. Almost all these films had new unknown actress which saved costs and date hassles and at the same time ensured that the actresses were desperate for work and were ready to do b**d scenes in these movies. Actresses like Sapna, Mink Brar were common in these films and at times actresses like Ayesha Jhulka, Madhu, Rambha etc also joined the bandwagon. These films were made at a cheap cost, sold at reasonable rates and even though most of them didn't fare well in the Bombay and Delhi circuit they did well enough in the interiors to recover their money. Some of these films were actually good like Jallad, Ravan Raj etc but most of them including the great Gunda and Loha were pure cringe.
This model worked well for Mithun and tk some extent for Dharmendra and Jackie Shroff, but after 1998 it reached its saturation point. Between 1998–99 Mithun had 30 releases many a times 2–3 films released in a single day. After this the B grade industry went into decline and Mithun had to take semi retirement in the early 2000’s signalling and end to Ooty Film Factory.