Reliance Industries (RIL) is considering acquiring a stake in Karan Johar's Dharma Productions as part of its efforts to strengthen its footprint in India's content production sector, as per media reports.
Dharma Productions has been actively seeking strategic partnerships with conglomerates and industrialists due to fluctuating box office performance, increasing production and talent costs and a growing shift in audience preferences towards OTT platforms.
Financially, the production house saw a near fourfold increase in revenue in FY23, reaching Rs 1,040 crore, up from Rs 276 crore in the previous year, according to Tofler.
Despite the revenue growth, the company’s net profit dropped by 59 per cent to Rs 11 crore, owing to a 4.5-fold increase in expenses, totalling Rs 1,028 crore. The company is 90.7 per cent owned by Johar, with his mother, Hiroo Johar, holding the remaining 9.24 per cent.
Reports indicated that RIL is in discussions to acquire a stake in Dharma Productions.
The news follows reports from the previous week suggesting that RP-Sanjiv Goenka Group-led Saregama India is also looking to acquire a majority stake in the company.
