Adar Poonawalla buys 50% stake in Karan Johar's Dharma Productions for Rs 1000 cr

Adar Poonawalla's Serene Entertainment has successfully acquired the 50% share in Dharma Productions and Dharmatic Entertainment for Rs 1000 crore, while Karan Johar retains the remaining half and continues as Executive Chairman, Apoorva Mehta will continue to be the CEO.

Dharma Productions, led by Karan Johar, has diluted 50 per cent of its shares to CEO of the Serum Institute of India, Adar Poonawalla’s Serene Productions. Poonawalla has surpassed Reliance and Saregama in the race to secure a major stake.

Adar Poonawalla's Serene Entertainment has successfully acquired the 50 per cent share in Dharma Productions and Dharmatic Entertainment for Rs. 1000 crore, while Karan Johar retains the remaining half and continue as Executive Chairman, Apoorva Mehta will continue to be the CEO.

Due to rising production expenses and changing consumer trends favoring OTT platforms, Dharma Productions has been actively pursuing strategic collaborations for some time.

In search of investors, Dharma Productions was in active discussions with major companies, such as Sanjiv Goenka’s Saregama and Mukesh Ambani’s Reliance Industries. Saregama, Dharma’s first choice, reportedly valued the company at Rs 600 crores, despite its revenue exceeding Rs. 1000 crores. Dharma then sought a better offer from RIL, with insiders revealing that key leaders from both companies met on Friday to explore the potential partnership.

Adar Poonawalla led Serene Productions today confirmed that it has entered into a binding agreement to invest Rs 1,000 crore into Karan Johar’s Dharma Productions and Dharmatic Entertainment (collectively, Dharma)

Talking about the partnership, Adar Poonawalla, said, "I am delighted to have the opportunity to partner with one of the most iconic production houses in our nation, along with my friend Karan Johar. We hope to build and grow Dharma and scale even greater heights in the years to come."

Commenting on the partnership, Karan Johar, Executive Chairman of Dharma, stated, "From its inception, Dharma Productions has been synonymous with heartfelt storytelling that captures the essence of Indian culture. My father dreamed of creating films that would leave a lasting impact, and I've dedicated my career to expanding that vision. Today, as we join forces with Adar, a close friend and an exceptional visionary and innovator, we're poised to elevate Dharma's legacy to new heights. This partnership represents a perfect blend of our emotional storytelling prowess and forward-thinking business strategies.

It's about honoring our roots while embracing the future of global entertainment. Dharma's journey has been remarkable, and this collaboration opens up a world of possibilities for creating content that will resonate across borders and generations."

IN FY23, the company reported a fourfold increase in revenue to ₹1,040 crore, up from ₹276 crore the previous year. However, net profit dropped by 59% to ₹11 crore due to a 4-5x rise in expenses. In FY23, the company managed to generate Rs. 656 crores from distribution rights, Rs. 140 crores from digital, Rs. 83 crores from satellite rights, and Rs. 75 crores from music.

Media reports indicate that Dharma’s latest project, Jigra starring Alia Bhatt was made with an impressive budget of Rs. 80 crores but the movie managed to get Rs 21 crores only despite being a festive season. However, Johar managed to recover the production costs through the sale of digital, satellite, and music rights, he could not achieve profit as expected.

Founded by Yash Johar in 1976, Dharma Productions has grown into a Bollywood giant under Karan Johar’s direction, producing over 50 films, including blockbusters like Kabhi Khushi Kabhie Gham, Yeh Jawaani Hai Deewani, and 2 States. Among their latest releases are Jigra, Kill, Bad Newz, Rocky Aur Rani Ki Prem Kahani, and Brahmāstra: Part One – Shiva.

The company has also played a key role in launching actors from prominent film families, including Alia Bhatt and Varun Dhawan. In 2018, it expanded into digital content through Dharmatic Entertainment, creating shows for major streaming platforms.