Adar Poonawalla acquires half of KJo's Dharma Productions for ₹1,000cr
In a major development, Adar Poonawalla, the CEO of Serum Institute of India, will be buying a 50% stake in Dharma Productions and Dharmatic Entertainment. The deal, which is worth ₹1,000 crore, values Karan Johar's film and television production and distribution company at ₹2,000 crore. The move comes as a part of the ongoing consolidation trend within the entertainment industry.
Poonawalla's investment to strengthen Dharma's financial position
Poonawalla is making this huge investment in his private capacity through Serene Productions. The remaining stake in Dharma will be held by Johar, who will continue to be the creative spearhead of the company, as Executive Chairman. Apoorva Mehta will continue to be the Chief Executive Officer. This strategic alliance lets Johar retain creative control while getting a huge financial backing from a familiar source.
Dharma's future plans and past financial performance
The investment from Poonawalla is likely to give Dharma the financial muscle to keep up with the fast-changing needs of digitally-savvy consumers. It will also help Dharma expand content for new platforms and formats, while continuing to tell stories for a global audience. Despite a nearly fourfold jump in revenue in FY23, Dharma's net profit declined by 59% due to a sharp increase in expenses.
Dharma's journey and Poonawalla's diversified interests
Founded by Yash Johar in 1976, Dharma Productions has been helmed by Karan Johar since his father's death. The company has produced almost 50 Bollywood films, including blockbusters such as Kabhi Khushi Kabhie Gham, Yeh Jawaani Hai Deewani, 2 States, Kapoor & Sons, and Dear Zindagi. Meanwhile, Poonawalla has expanded his business interests into financial services, real estate, and hospitality.
