Adar Poonawala on buying stake in Dharma productions: ‘My friend Karan Johar...’
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 Productions and Dharmatic Entertainment, for ₹1000 crore. Adar Poonawalla is making this investment in his private capacity through Serene Productions after which Dharma Productions will retain the residual stake with Karan Johar continuing to remain Executive Chairman.
"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," Adar Poonawalla said.
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On the partnership, Karan Johar said, “From its inception, Dharma Productions has been synonymous with heartfelt storytelling that captures the essence of Indian culture. My father dreamed of creating films that would leave a lasting impact, and I've dedicated my career to expanding that vision. Today, as we join forces with Adar, a close friend and an exceptional visionary and innovator, we're poised to elevate Dharma's legacy to new heights. This partnership represents a perfect blend of our emotional storytelling prowess and forward-thinking business strategies.”
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Dharma Productions had been actively seeking investments and 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.