Can the flop director succeed as producer?

Ramesh Varma started his career as Movie Posters designer and had later started directed movies like Oka Oorilo, Malle Puvvu, Ride and Veera. A movie under his direction with Balakrishna as the main lead was announced but did not go on to sets. His last movie Veera with Ravi Teja is an outright disaster and is left him with no offers now. And now he had donned a new avatar. He is producing Jaffa on his own banner Kiran Arts Pvt Ltd.
Jaffa is being directed by Vennela Kishore. The first look of the movie was recently released and has gone viral on internet.The movie is reportedly made with a budget of under 2 Crores. The movie is being produced by Ramesh Varma who earlier directed movies like Ride and Veera. The makers are expecting a minimum of 1.2 Crores for the TV rights of the movie and atleast 20 Lakhs for the DVD rights. So the rest of the 60 Lakhs have to be recovered from the theatrical rights of the movie for the break even. And with the hype that is created, the makers are easily expected to draw double the amount they invested.