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The media and entertainment industry is rife with speculation that filmmaker Karan Johar is looking to sell a majority stake in his production and distribution company, Dharma Productions. He has reportedly approached some of India's leading business conglomerates for potential investment.
Sources indicate that three major business houses based in Mumbai, Kolkata and Ahmedabad are in the running, with the frontrunner being the one that also owns a music company.
Although the specific stakes and potential deal value remain unclear, the move suggests a shift for the company. Considering Dharma Productions' influence in Bollywood, the rumoured deal is likely to draw substantial 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 arise as Dharma Productions' profit after tax dropped to Rs 10.7 crores in FY23, down from Rs 27.1 crores in FY22, according to financials obtained from Tofler.
In FY23, the company reported a total revenue of Rs 1,044 crores, an increase from Rs 278 crores the previous year. Borrowings for the fiscal year stood at Rs 82 crores, down from Rs 92 crores in FY22.
Mumbai-based Dharma Productions was founded by Johar's father, the late Yash Johar in 1976, with its debut film 'Dostana' featuring actor Amitabh Bachchan.
Johar assumed leadership in 2004 after his father's passing. Under his direction, Dharma expanded into various ventures including advertising, talent management, content production and live shows, by establishing subsidiaries like Dharma 2.0, Cornerstone Agency, Dharmatic Entertainment and DharmaShow Live TV & Movies.
There has been no official confirmation regarding the development so far.
It’s worth noting that in 2021, similar speculative media reports suggested that the Adani Group, led by billionaire Gautam Adani, was in talks to acquire a stake in Dharma Productions, a claim that was later denied by the company.
Dharma Productions presents a highly lucrative opportunity for potential buyers, thanks to its reputation for producing high-quality films that resonate with a broad audience, ensuring a loyal fan base and strong market demand.
Johar’s knack for casting A-list actors and creating star-studded films boosts the production house's value as star power is crucial in drawing audiences and driving box office success.
The company is known for its lavish production values, grand sets and visually stunning cinematography, making its films attractive not only for theatrical releases but also for streaming platforms and satellite deals. Dharma’s diverse portfolio, ranging from family dramas and romantic comedies to action-packed thrillers and biopics, allows it to cater to various audience segments, both in India and internationally, thereby expanding its market reach and profitability.
Moreover, Dharma Productions' strong partnerships with other filmmakers, studios and leading entertainment firms like Saregama further enhance its appeal as a reliable and profitable investment in the film industry.
Some of Johar's most iconic films include Kabhi Khushi Kabhie Gham, a multi-generational family drama that became a cultural touchstone and Kal Ho Naa Ho, a romantic drama. Dharma Productions has also explored various genres with films like My Name is Khan which addressed social issues and Raazi, a critically acclaimed spy thriller. More recent successes include Yeh Jawaani Hai Deewani, Good Newwz and Shershaah.
