Filmmaker Karan Johar has sold a 50 percent stake in Dharma Productions to Adar Poonawalla, the chief executive officer of Serum Institute of India. The vaccine maker, who emerged as a beacon of hope during the Coronavirus pandemic, has now stepped in as a saviour for Johar’s struggling Dharma Productions for Rs 1,000 crore.
However the details of the same are not known yet. The same was reportedly achieved after long prolonged discussions by Dharma’s multiple interested parties; including Saregama and Reliance Industries Limited.
As per the financial scenario of Dharma Productions, an immediate intervention was required to prevent dire conditions in the production house.
The topline more than quadrupled for Dharma Productions, whose revenues catapulted to Rs 1,040 crore in FY23 from Rs 276 crore in the previous financial year. Profits, however, declined by 59 percent to Rs 11 crore in FY23, with expenditure of Rs 1,028 crore excluded. The production house raked in Rs 656 crore in the same fiscal year from distribution rights, Rs 140 crore from digital rights, Rs 83 crore from satellite rights, and Rs 75 crore from music rights.
2022 saw next to no yield, amounting to about Rs 19 crore from distribution rights, Rs 167 crore from digital rights, Rs 34 crore from satellite rights, and Rs 21 crore from music rights.
Losses in the company have mounted manifold after a series of flops. The latest film from Dharma Productions, “Jigra,” with Alia Bhatt hasn’t helped much. The movie brought in only Rs 21 crore in six days after release against a cost of Rs 80 crore. Controversies about the movie’s similarity to a South Indian movie have further complicated the financial situation for the company. All that considered, Dharma’s profit after tax plunged sharply to Rs 10.7 crore in FY23 versus Rs 27.1 crore in FY22.
Controversial Return and Box Office Flops
Rocky Aur Rani Ki Prem Kahani” had seen Karan Johar return as a director after five years. According to trade figures, the film has gone over Rs 350 crore worldwide on a budget of Rs 160 crore. However, there have been murmurs in the trade circles that the figures were doubtful. On the other hand, Karan’s string of flops includes “Kill,” “Warrior,” “Mr. and Mrs. Mahi,” “Bad News,” and “Jigra.” Interestingly, the makers have emerged with a new game plan of not getting their work screened by critics before releasing it.
Switching to OTT During the Pandemic
During the pandemic, Dharma moved to the OTT space and released earlier completed films such as “Gunjan Saxena,” “Shershaah,” and “Gehraiyaan.”Karan Johar had set up Dharmatic to be the house of web series and low-budgeted films for OTT/ digital media.
The story of films has been a mixed one. “Section 375” bombed while “Crimes Diary” did okay but “Haseena Parker” flopped at the box office.
A Legacy in Transition
Started by Yash Johar in 1976, Consul India Ltd was the base of India’s largest film studio, Dharma Productions. Karan Johar took over in 2004 and expanded the company further into advertising, talent management, and digital content. One of the latest avowals to innovation is in the shape of Dharmatic Entertainment, a digital venture.
A New Chapter for Dharma
Adar Poonawalla’s investment could be a turning point for Dharma Productions. When the new liberal trade policy could change the landscape of this entertainment industry so far, Dharma Productions seems at its unprecedented low. Therefore, hope must shine at its very best from both sides to bring back the momentum at Dharma in a competitive market.
