Adar Poonawalla’s Serene Productions will acquire a 50 percent stake in Karan Johar’s Dharma Productions and Dharmatic Entertainment for Rs 1,000 crore, marking a significant partnership in the Indian entertainment industry. Johar will retain the remaining stake and continue as Executive Chairman, while Apoorva Mehta remains CEO.
Dharma Productions has been actively seeking investments for some time and engaged in talks with several large conglomerates, including Sanjiv Goenka’s Saregama and Reliance Industries' Jio Cinema. Raine Group advised on the deal, which comes at a time when Dharma has seen a nearly fourfold surge in revenue, rising to Rs 1,040 crore in FY23, compared to Rs 276 crore in the previous year. Despite this, net profit fell by 59% to Rs 11 crore due to increased expenses. The company earned Rs 656 crore from distribution rights, Rs 140 crore from digital, Rs 83 crore from satellite rights, and Rs 75 crore from music.
Founded in 1976 by Yash Johar, Dharma Productions has become a powerhouse in Bollywood under Karan Johar's leadership, producing over 50 films including blockbusters like Kabhi Khushi Kabhie Gham, Yeh Jawaani Hai Deewani, and 2 States. The company is also known for launching young actors from prominent film families, including Alia Bhatt and Varun Dhawan. In 2018, it expanded into digital content with Dharmatic Entertainment, producing shows for global streaming platforms like Netflix and Amazon Prime.
Poonawalla, who has diversified his business into sectors like financial services, real estate, and hospitality, expressed his excitement about the deal: "I am delighted to partner with one of the most iconic production houses in our country, alongside my friend Karan Johar. Together, we hope to grow Dharma and scale greater heights."
The partnership aims to capitalize on the rapidly growing digital consumption in India, blending Dharma’s storytelling legacy with Poonawalla’s strategic expertise. By integrating advanced technologies and new production methods, the collaboration hopes to push boundaries in content creation, meet the evolving demands of digital-first audiences, and strengthen India’s entertainment ecosystem on the global stage.
Johar shared his vision for the partnership: "Dharma has always been about heartfelt storytelling. With Adar, a close friend and visionary, we’re ready to take Dharma’s legacy to new heights." Mehta added, "This partnership allows us to explore new opportunities in content creation and distribution, taking bigger creative steps."