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He quickly established his own concern by 1980 and started producing and directing a string of distinctive films made mainly in the Tamil language. His first commercially successful main lead hero film was Bhama Rukmini in 1980. This film was neither directed, produced nor written by him. His voice was dubbed by someone else in all the films he did till 1980, including Bhama Rukmini. Beginning with films such as Mouna Geetangal, he started to dub his own lines in his films. He often stars in lead roles of the films he scripts and directs, effectively carving out a niche for himself in the actor-auteur vein. His style of film-making is notable for its relatively elaborate, witty, and double-entente-laced script and socially themed framework. His on-screen personae are typically characterised by their ironic sense of humour and intelligent bravado. The success of Bhama Rukmini was followed by 12 films directed by him – starring him as the main lead, which were box office hits – Vidiyum Vari Kaathiru, Mouna Geethanagal, Indru Poyi Naalai Vaa, Antha Ezhu Natkal, Thooral Ninnu Pochhu, Poyi Satchi, Darling Darling Darling, Dhavani Kannavukal, Munthanai Mudichu, Chinna Veedu, Enga Chinna Rasa and Idhu Namma Aalu. From 1981 onwards, successful Tamil films written, directed by and starring him started being remade in Hindi, with the first being Mouna Geetangal, remade as Ek Hi Bhool and Anztha Ezhu Natkal remade as Woh Saat Din. In the period 1980–1990, he rarely acted in films not directed or written by him, with exceptions being Naan Sigappu Manithan, Anbulla Rajinikanth and En Rathathin Rathame. His next directorial venture Chithirame Chithirame was box office flop, and then he directed Mayadari Mogudu in Telugu, which was a success. He introduced actress Urvashi in the Tamil film Mundhanai Mudichu and actress Kalpana (sister of Urvashi) made her début with the 1985 film Chinna Veedu, directed by Bhagyraj, a commercially successful film. He received the Filmfare Award for Best Tamil Actor for his performance in Mundhanai Mudichu. He became nationally famous when he wrote the script for Mundhanai Mudichu remade in Hindi as Masterji with Rajesh Khanna in the lead role, which was huge success at the box office. He decided to direct the Hindi remake of Bharatiraja's 1984 directorial venture Oru Kaidhayin Diary with Rajesh Khanna in the lead in 1985, but later Khanna due to his date issues had to opt out and Bhagyaraj cast Amitabh Bachchan in the Hindi remake Aakhree Raasta. Bhagayraj decided to remake the classic old Kannada film Mallammana Pavada, starring Rajkumar and B Saroja Devi into a new Tamil film Enga Chinna Rasa in 1987, which became a huge blockbuster. In 1989, K. Balaji produced a Tamil remake of Mr. India as En Rathathin Rathame and the film was successful. In 1989, he wrote the script for Idhu Namma Allu and decided to produce it, but chose not to direct it by himself, as he wanted to act-write-direct a film on a serious issue, which was Aararo Aaariraro.