Move Over, Bollywood. There’s a New Star in Town Called Tollywood.

HYDERABAD, India—Manoj Valluri, chief executive of a Hyderabad-based social-media marketing firm, says he’s given up trying to squeeze productivity out of his workers on certain key days. These aren’t official holidays—he means the opening days for the latest South Indian blockbuster action-hero films.

Swaths of the region come to a standstill for the kickoff of the star-laden movies. Some companies give their employees the day off because they know many will play hooky to watch megawatt actors punch, kick and outwit the bad guys on the big screen.