Oct 21, 2024 10:52 AM IST
Adar Poonawalla is acquiring a 50% stake in Karan Johar’s Dharma Productions for 1000 crore, allowing Johar to maintain creative control.
Adar Poonawalla, CEO of the Serum Institute of India, is set to pick up a 50% stake in Karan Johar’s Dharma Production and Dharmatic Entertainment, for ₹1000 crore, Economic Times reported citing people in the know. The report claimed that Adar Poonawalla is making this investment in his private capacity through Serene Productions after which Dharma Prdocution will retain the residual stake with Karan Johar continuing to remain as the creative spearhead of the company, as Executive Chairman.
The report noted, “The key factor that led to stitching together this alliance is Johar retaining creative control while partnering with a deep pocket family he is familiar with. The Poonawalla investment will help the production house with enough financial muscle to navigate the fast-changing demands of digitally savvy consumers who are often digital natives. The investment will also boost Dharma’s efforts to double down on content for new platforms and formats while continuing to deliver interesting stories for a global audience.”
This comes after it was reported that Dharma Productions has been actively seeking investments and had engaged in talks with several large conglomerates. The company posted a fourfold surge in revenue to ₹1,040 crore in FY23, from ₹276 crore the previous year however net profit fell 59% to ₹11 crore due to a 4.5-times rise in expenses at ₹1,028 crore. In FY23, the company earned ₹656 crore from distribution rights, ₹140 crore from digital, ₹83 crore from satellite rights, and ₹75 crore from music.