Karan Johar reveals Dharma Productions doesn't make much profit
What's the story
Karan Johar, the head of Dharma Productions, has opened up about the financial realities of his famous film production company. Speaking at an event for Mirai, which he is presenting in North India, Johar revealed that many people are often shocked by his profit and loss statements. "When I talk to industrialists and other members of the corporate industry, we are nothing," he said.
Passion over profit
Johar's response to outsiders' views on the film industry
Johar further explained that the film industry is often viewed differently from the outside. He said, "They look at our P&L statements, and they say, 'That's it? Is this all you have to show for all the work you do?'" "And my response is always, 'In our business, we don't look at numbers, we respond to hearts.'" "We make movies not with our brains but with our hearts."
Business insights
Last year, Johar sold a 50% stake in Dharma Productions
Last year, Johar sold a 50% stake in Dharma Productions to Adar Poonawalla of Serum Institute. This deal was reportedly worth ₹1,000 crore and aimed at retaining profits instead of sharing them with others. Speaking about this partnership at the CNBC-TV18 Global Leadership Summit, Johar said he needed a partner who could provide business insight and help him create a vision for growth.
New venture
Poonawalla's entry into media surprised many
Poonawalla, who is known for his work in the vaccine industry, surprised many by entering the media space. He admitted to being taken aback by this move but also saw it as a good business opportunity. "It's not such a bad business opportunity... with verticals like music distribution and content creation, these are areas that will thrive in the next 5-7 years," he said in a statement.
Learning curve
Struggles with business jargon during meetings
Johar also shared his struggles with understanding business jargon during meetings with Poonawalla. "I was traumatized in so many of those meetings. I'm a creative artist." "I don't know what's a 'put' and a 'call,' a 'drag' and a 'tag,'" he admitted. Despite these challenges, he has learned about the financial aspects of his industry through this partnership.
Future prospects
Hopes for increased profits and return to direction for Johar
With Poonawalla now involved in the business side of Dharma and Johar focusing on the creative aspects, there are hopes that the company's profits will increase significantly. Johar has also announced his return to direction, which could further boost Dharma's success. His last directorial venture, Rocky Aur Rani Kii Prem Kahaani, was a hit at the box office.