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Filmmaker Karan Johar’s Dharma Productions has sold a 50% stake to Adar Poonawalla-led Serene Productions. Details of this significant deal remain undisclosed, but it marks a strategic shift in the landscape of Bollywood film production.
Exchange4media Group was the first to report that Dharma Productions was planning to offload its minority stakes. According to industry insiders, Karan Johar’s production house engaged in discussions with multiple parties, including music company Saregama and Mukesh Ambani-led Reliance Industries Limited (RIL), before finalising the agreement with Poonawalla. Notably, top executives from Dharma and Reliance met on Friday to explore this potential partnership.
Dharma Productions has been actively seeking strategic partnerships amid rising production costs and shifting consumer preferences towards OTT platforms like Netflix and Amazon Prime Video. This move aligns with industry trends as filmmakers adapt to the evolving landscape of film distribution and consumption.
The production house is currently facing financial pressure due to losses incurred from the underwhelming performance of its recent film, Jigra, co-produced by Karan Johar and Alia Bhatt. As of six days post-release, Jigra has grossed only INR 21 crore. Meanwhile, Rajkummar Rao and Triptii Dimri's Vicky Vidya Ka Who Wala Video, which also released alongside Jigra on October 11, has made INR 25 crore so far, although this performance is also viewed as lacklustre by film critics.
Media reports indicate that Jigra had a substantial budget of INR 80 crore, with an additional INR 10 crore allocated for promotional activities. However, the film faced serious allegations of plagiarism. While Karan Johar may have managed to recoup some production costs through the sale of digital, satellite, and music rights, Jigra has not yielded a profit, even during the festive season.
In FY23, Dharma Productions' profit after tax fell to INR 10.7 crore, a significant decrease from INR 27.1 crore in FY22, according to financial data from Tofler. This decline highlights the challenges facing traditional film production companies in the current market, prompting a need for innovative strategies in Bollywood.
Founded in 1976 by Karan Johar’s late father, Yash Johar, Dharma Productions is one of India’s leading film production houses. It launched its legacy with the film Dostana, starring Amitabh Bachchan. Karan Johar took over the company in 2004 after his father’s passing, expanding its operations into various sectors, including advertising, talent management, content production, and live entertainment through initiatives like Dharma 2.0, Cornerstone Agency, Dharmatic Entertainment, and DharmaShow Live TV & Movies.
