Why is Kollywood failing to produce a 'Baahubali', an 'RRR', a 'Pushpa', a 'Kalki 2898 AD'? When you want medium-range hits, it would be enough to have excellent filmmakers. When you want blasting blockbusters, you need to have both action heroes and mass directors.
Tamil cinema lacks both. Kollywood has superstars (read Rajinikanth, Vijay, Ajith) but not action heroes. Yes, Vijay and Ajith do action movies but just two are not enough. Telugu cinema has multiple action heroes. If Prabhas fails, Allu Arjun can save the day. If Ram Charan fails, Jr NTR can save the day.
Also, you can't imagine Vijay and Ajith headlining 'Kalki 2898 AD'. You can't imagine them as Pushpa Raj.
Mass directors are woefully inadequate in Kollywood. Pa.Ranjith, TJ Gnanavel, Mari Selvaraj and Vetrimaaran can't be trusted to make universally likeable action films. Shankar's potential will be known only after 'Game Changer' releases. Mani Ratnam is not into that game at all.
Look at Tollywood. After Rajamouli and Sukumar, Trivikram is trying to enter the big league with his next movie, to be led by Allu Arjun. Even Gopichand Malineni and Bobby Kolli are dreaming big. In Tamil, only Lokesh Kanagaraj has the potential to join the big league.
Tamil cinema is content with films like 'Lubber Pandhu', 'Maharaja', 'Amaran' and 'Raayan'. It is what it is. A film like 'Vettaiyan' would never be made in Telugu with a superstar of Rajinikanth's stature. Not a single scene in it would make it to the league of a pan-Indian movie. Even if, say, Chiranjeevi were to act in such a script, the producer/director here would be wise enough to believe that such a movie stands no chance outside the state borders.