Adar Poonawalla Acquires 50% Stake in Karan Johar’s Dharma Productions for ₹1000 Crore

Adar Poonawalla, CEO of Serum Institute of India, is set to acquire a 50% stake in Karan Johar’s Dharma Productions and its digital content arm, Dharmatic Entertainment.

What’s the Deal?

The deal, worth ₹1000 crore, values the production company at ₹2000 crore. This investment, made through Poonawalla’s Serene Productions, marks a major consolidation in the film and entertainment sector, with Karan Johar continuing as the creative lead and Executive Chairman.

This collaboration brings together Johar’s decades-long experience in storytelling and content creation with Poonawalla’s financial muscle and strategic vision. For Johar, retaining creative control was key to forming this partnership. Poonawalla’s investment allows Dharma Productions to strengthen its financial position and gear up to meet the evolving demands of a rapidly digitalizing audience. Apoorva Mehta, the current CEO of Dharma, will continue in his role, ensuring the smooth running of day-to-day operations.

Karan Johar’s ‘Take Dharma To Great Heights’

Johar expressed his excitement about the alliance, highlighting the opportunity to build upon his father’s legacy while embracing new formats and technologies. “This partnership with Adar, a close friend and visionary, will enable us to take Dharma to even greater heights,” Johar stated. Poonawalla shared his enthusiasm as well, calling the partnership a chance to help Dharma grow and expand its reach both in India and globally.

Dharma Productions, founded by Yash Johar in 1976 and now helmed by Karan Johar, has delivered some of Bollywood’s biggest blockbusters, such as Kabhi Khushi Kabhie Gham, Yeh Jawaani Hai Deewani, 2 States, and Dear Zindagi. The company’s growing success in the digital space through Dharmatic Entertainment, which focuses on OTT content, aligns with the current industry trend where streaming platforms are fast gaining ground.

This investment comes as Dharma saw a fourfold increase in revenue in FY23, reaching ₹1,040 crore, up from ₹276 crore the previous year. However, net profits fell by 59% to ₹11 crore, primarily due to a sharp rise in expenses. The deal with Poonawalla is expected to provide the financial muscle needed to navigate the fast-changing digital landscape and expand content across multiple platforms.

What’s in the deal for Poonawalla?

The investment is also a strategic move for Poonawalla, who has been diversifying his business interests into areas like real estate, financial services, and hospitality. His decision to back Dharma Productions is a bet on the growing demand for high-quality digital content in an industry that is rapidly evolving to meet the expectations of a digitally savvy, global audience.

The deal will allow Dharma to double down on content for new platforms and formats while continuing to deliver stories that resonate with a global audience.

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