Adar Poonawalla Acquires 50% Stake in Karan Johar Dharma
Key Highlights:
- Adar Poonawalla acquired a 50% stake in Dharma Productions for Rs 1,000 crore.
- Karan Johar maintains creative control over the production house.
- Dharma Productions reported a four-fold increase in revenue in FY23, despite a decline in net profit.
- The investment will fuel expansion into digital outlets and new content formats.
Adar Poonawalla: The Visionary Behind India’s Vaccine Revolution
Adar Poonawalla, CEO of the Serum Institute of India, is set to acquire a 50% stake in Karan Johar’s Dharma Productions and its subsidiary Dramatic Entertainment. The investment, which is being made through Poonawalla’s private company, Serum Productions, is worth Rs 1,000 crore.
Key Details of the Deal:
Post-investment, Dharma Productions will retain the remaining stake, with Karan Johar continuing as the creative leader of the company. According to media reports, one of the main factors behind this alliance was Johar’s desire to maintain creative control while partnering with a financially strong family he is familiar with.
This investment will empower Dharma Productions to adapt to the ever-changing demands of digitally savvy consumers. It also aligns with the company’s plans to expand its content creation efforts for new platforms while continuing to tell engaging stories for a global audience.
Dharma Productions: A Growing Business:
Adar Poonawalla Acquires 50% Stake in Karan Johar Dharma: Dharma Productions has been actively seeking investments and held discussions with several large conglomerates, including Saregama and Mukesh Ambani’s Reliance. The company posted a four-fold revenue surge in FY23, jumping to Rs 1,140 crore from Rs 276 crore in FY22.
However, net profit fell by 59%, down to Rs 11 crore in FY23. Dharma’s revenue breakdown includes Rs 656 crore from distribution rights, Rs 140 crore from digital platforms, Rs 83 crore from satellite rights, and Rs 75 crore from music.
Conclusion:
This strategic partnership with Adar Poonawalla will offer Dharma Productions the financial muscle needed to navigate the rapidly evolving entertainment landscape. The deal is expected to strengthen its position in creating content for new platforms while continuing to cater to a global audience.
