Drug-maker Poonawalla buys half of Karan Johar's Dharma film company

Adar Poonawalla's Serene Productions will acquire a 50 percent stake in Karan Johar's Dharma Productions and Dharmatic Entertainment for ₹1,000 crore. Mr Johar will keep the remaining stake and continue as executive chairman, while Apoorva Mehta will remain the CEO. A few days ago, Karan Johar's production company Dharma Productions made headlines with reports that Mukesh Ambani was planning to buy a stake in it.

Seeking for investments quite long

Dharma Productions has been looking for investments for some time and had talks with various large companies, including Sanjiv Goenka's Saregama and Reliance Industries' Jio Cinema. The Raine Group advised on this deal, which comes at a time when Dharma's revenue has surged nearly fourfold, rising to ₹1,040 crore in FY23 from ₹276 crore the previous year. However, net profit dropped by 59% to ₹11 crore due to increased expenses. The company made ₹656 crore from distribution rights, ₹140 crore from digital content, ₹83 crore from satellite rights, and ₹75 crore from music.

The bollywood powerhouse

Founded in 1976 by Yash Johar, Dharma Productions has become a leading name in Bollywood under Karan Johar's guidance, producing hits like Kabhi Khushi Kabhie Gham, Yeh Jawaani Hai Deewani, and 2 States. The company is also known for launching young actors from famous film families, such as Alia Bhatt and Varun Dhawan. In 2018, it expanded into digital content with Dharmatic Entertainment, creating shows for major streaming platforms like Netflix and Amazon Prime.

Mr Poonawalla, who has diversified into areas like financial services, real estate, and hospitality, expressed his excitement about the deal: "I am delighted to partner with one of the most iconic production houses in our country, alongside my friend Karan Johar. Together, we hope to grow Dharma and reach new heights."

Mr Johar shared his vision for the partnership: "Dharma has always focused on heartfelt storytelling. With Adar, a close friend and visionary, we’re ready to elevate Dharma’s legacy." Mehta added, "This partnership will let us explore new opportunities in content creation and distribution, allowing us to take bigger creative steps."