The media and entertainment industry is abuzz with speculations that filmmaker Karan Johar seeks to sell majority stakes of his film production and distribution company Dharma Productions and has reached out to India’s top business conglomerates for investment purposes.
The potential investors are believed to be three top business houses based out of Mumbai, Kolkata and Ahmedabad. Of them, the one which also owns a music company, is said to be the frontrunner, sources privy to development told e4m.
While the exact stakes and potential deal value aren't clear, this move indicates a strategic shift for the company. Given Dharma Productions' prominent position in Bollywood, the alleged deal could attract considerable attention.
“The value would likely depend on the percentage of equity being offered, Dharma Productions' current financials, and its future growth prospects,” insiders say.
These speculations have come at a time when the profit after tax for Dharma Productions was reduced to ?10.7 crores in FY23, down from ?27.1 crores in FY22, as per the company financials obtained from Tofler.
For the fiscal year 2023, Dharma Productions reported a total revenue of ?1,044 crores, compared to ?278 crores a year earlier. It also had borrowings amounting to ?82 crores in FY23, down from ?92 crores in FY22.
Mumbai-based Dharma Productions is one of India's top film production houses. The company was founded by Karan Johar’s father Late Yash Johar in 1976, with its first movie titled ‘Dostana’ starring Amitabh Bachchan.
Karan Johar took over the reins in 2004 after his father’s demise. Under Karan, Dharma expanded its operations by venturing into advertising, talent management, content production, live shows and movies, among others, by setting up Dharma 2.0, Cornerstone Agency, Dharmatic Entertainment and DharmaShow Live TV & Movies.
Dharma silent
There hasn't been any official confirmation about the development yet. Repeated calls and texts to company’s CEO Apoorva Mehta seeking details about the sell off remained unanswered till the time of writing these lines. The copy will be updated when they respond.
Notably, there were some speculative media reports in 2021 as well which claimed that Adani Group, led by billionaire Gautam Adani, was in talks to acquire a stake in Dharma Productions. Dharma productions had denied it then.
Why is Dharma Productions so lucrative for buyers?
The production house is known for delivering high-quality films that resonate with a wide audience, ensuring a built-in fan base and strong market demand. Karan Johar's ability to cast A-list actors and create star-studded films adds significant value, as star power is a key factor in attracting audiences and driving box office revenues.
Additionally, Dharma's films often feature lavish production values, grand sets, and visually appealing cinematography, making them attractive for theatrical releases, streaming platforms, and satellite deals.
Moreover, Dharma Productions has a diverse portfolio that spans various genres, from family dramas and romantic comedies to action-packed thrillers and biopics. This versatility allows the company to appeal to different segments of the audience, both in India and internationally, enhancing its market reach and profitability.
The production house's strong collaborations with other filmmakers, studios and top entertainment firms like Saregama also contribute to its success, ensuring that Dharma Productions remains a reliable and lucrative investment for buyers in the film industry.
Iconic films
Some of Karan Johar's most iconic films include Kabhi Khushi Kabhi Gam, a multi-generational family drama that became a cultural phenomenon, and Kal Ho Naa Ho, a poignant romantic drama.
The production house has also ventured into different genres with films like My Name is Khan, which tackled social issues, and Raazi, a critically acclaimed spy thriller. More recent hits include Yeh Jawaani Hai Deewani, a vibrant coming-of-age story, Good Newwz, a comedy-drama, and Shershaah, a biopic that won hearts for its portrayal of a war hero.
