Billionaire Adar Poonawalla, led Serene Productions, has bought a 50 per cent stake worth Rs 1000 crore in filmmaker Karan Johar’s Dharma Productions and Dharmatic Entertainment. Johar will continue as the creative head and executive chairman of the company. The partnership of Dharma Productions and Serene Productions aims to expand large-scale, multilingual productions, develop franchises and focus on evolving entertainment formats.
The deal has come at a time when the Indian entertainment industry is undergoing significant expansion given the increasing digital penetration. Additionally, the deal focuses on content creation, distribution, and audience engagement, particularly catering to the demands of digital consumers.
“This strategic partnership between Serene Productions and Dharma is designed to capitalise on these opportunities by combining Dharma’s rich legacy in storytelling with Adar Poonawalla’s strategic acumen and resources,” said Dharma Production in a statement on October 21.
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The statement highlighted that the collaboration is also eyeing taking the Indian entertainment industry on a global stage.
“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,” said Adar Poonawalla.
The deal will give financial support to Johar’s company, which has seen a significant decrease in earnings. According to financial data from Tofler, the total revenue of the film production company came down from Rs 1,044 crore in the financial year 2022-23 to Rs 520.20 crore in FY24. Moreover, the company’s revenue from distribution and exhibition of films declined from Rs 656 crore in FY23 to Rs 111 crore in FY24.
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The dip in earnings is a challenge not just for Karan Johar’s Dharma Production but for the entire Hindi film industry due to a slowdown in the number of box office hits. Additionally, the film production cost remains high, while audiences going to watch movies in theaters haven’t gone up significantly to cover the cost. The growth of OTT platforms is posing a threat to the traditional ways the production companies made money while offering new sources of income with increasing demand for content digitally.
Earlier media reports highlighted that Johar is actively looking for investors to buy a stake in Dharma Productions, including industrialists Sanjiv Goenka and Mukesh Ambani’s Reliance Industries.
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