In later years, Nagi Reddi, owner of Vijaya Productions, acquired Vauhini studios on lease.

[5] K. V. Reddy, a close friend of Narayana Swamy also joined Vauhini Pictures along with them and was also made a partner in the company.

[6][7] Films like Vande Mataram (1939), Sumangali (1940), Devatha (1941) were made on the Vauhini Pictures banner in the direction of B. N.

[11] Around the same time, Vauhini Productions' films were getting delayed due to a lack of studio facilities.

[1] Narayana Swamy invested the capital required for building the studio while B. N. Reddy took up the responsibility of managing the construction work.

Vauhini studio was hence leased, to Vijaya Productions, to save it from income tax department's attachment.